STATE OF NEW YORK
________________________________________________________________________
6446--A
2007-2008 Regular Sessions
IN SENATE
August 10, 2007
___________
Introduced by Sens. GOLDEN, LANZA, MALTESE -- read twice and ordered
printed, and when printed to be committed to the Committee on Rules --
recommitted to the Committee on Housing, Construction and Community
Development in accordance with Senate Rule 6, sec. 8 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the real property tax law, in relation to making changes
relating to substantial government assistance, continued affordabili-
ty, clarification of rent stabilization laws, and prevailing wage, and
making certain other technical amendments
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (c) of subdivision 7 of section 421-a of the real
2 property tax law, as amended by chapter 619 of the laws of 2007, is
3 amended to read as follows:
4 (c)(i) Not less than twenty percent of the units in the multiple
5 dwelling must, upon the initial rental or sale of the units and upon all
6 subsequent rentals of the units after a vacancy, be affordable to and
7 occupied or available for occupancy by individuals or families whose
8 incomes at the time of initial occupancy do not exceed sixty percent of
9 the area median incomes adjusted for family size or (ii) if the
10 construction of such building is carried out with substantial assistance
11 of grants, loans or subsidies from any federal, state or local agency or
12 instrumentality and such assistance is provided pursuant to a program
13 for the development of affordable housing, not less than twenty percent
14 of the units in the multiple dwelling must, either (A) upon the initial
15 rental of the units and upon all subsequent rentals of the units after a
16 vacancy, be affordable to and occupied or available for occupancy by
17 individuals or families whose incomes at the time of initial occupancy
18 do not exceed [eighty] one hundred twenty percent of the area median
19 incomes adjusted for family size and, where the multiple dwelling
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14083-05-7
S. 6446--A 2
1 contains more than twenty-five units, do not exceed an average of ninety
2 percent of the area median incomes adjusted for family size, or (B) upon
3 the initial sale of the units, be affordable to and occupied or avail-
4 able for occupancy by individuals or families whose incomes at the time
5 of initial occupancy do not exceed one hundred twenty-five percent of
6 the area median incomes adjusted for family size. [No less than fifty
7 percent of all units which qualify for benefits pursuant to this section
8 in any year shall meet the requirements of subparagraph (i) of this
9 paragraph.]
10 § 2. Paragraph (b) of subdivision 7 of section 421-a of the real prop-
11 erty tax law, as added by chapter 618 of the laws of 2007, is amended to
12 read as follows:
13 (b) Notwithstanding any provision of this section or any local law to
14 the contrary, the benefits of this section shall not be available for
15 new multiple dwellings located in a geographic exclusion area which
16 commence construction after December twenty-eighth, two thousand seven
17 unless they comply with the provisions of this subdivision for [40]
18 thirty-five years from completion of construction of the building
19 receiving benefits pursuant to this section.
20 § 3. Paragraph (e) of subdivision 7 of section 421-a of the real prop-
21 erty tax law, as added by chapter 618 of the laws of 2007, is amended to
22 read as follows:
23 (e) Notwithstanding any provision of law to the contrary, affordable
24 rental units must remain as rent stabilized units for [forty] thirty-
25 five years from completion of construction provided that tenants holding
26 a lease and in occupancy at the expiration of the rent stabilization
27 period shall have the right to remain as rent stabilized tenants for the
28 duration of their occupancy.
29 § 4. Subparagraph (i) of paragraph (a) and paragraph (c) of subdivi-
30 sion 8 of section 421-a of the real property tax law, as added by chap-
31 ter 618 of the laws of 2007, are amended to read as follows:
32 (i) "Building service employee" means any person who is regularly
33 employed at a building who performs work in connection with the care or
34 maintenance of such building. "Building service employee" includes, but
35 is not limited to superintendent, watchman, guard, doorman, building
36 cleaner, porter, handyman, janitor, gardener, groundskeeper, elevator
37 operator and starter, and window cleaner, but shall not include persons
38 regularly scheduled to work fewer than eight hours per week in the
39 building.
40 (c) The limitations contained in paragraph (b) of this subdivision
41 shall not be applicable to:
42 (i) projects containing less than fifty dwelling units; or
43 (ii) buildings where the local housing agency certifies that at
44 initial occupancy at least fifty percent of the dwelling units are
45 affordable to individuals or families with a gross household income at
46 or below one hundred twenty-five percent of the area median income and
47 that any such units which are located in rental buildings will be
48 subject to restrictions to insure that they will remain affordable for
49 the entire period during which they receive benefits under this section.
50 § 5. Paragraph (c) of subdivision 9 of section 421-a of the real prop-
51 erty tax law, as amended by chapter 619 of the laws of 2007, is amended
52 to read as follows:
53 (c) The portion of the assessed valuation of any residential tax lot
54 exempted from real property taxation in any year pursuant to this
55 section shall not exceed the exemption cap on or after the first taxable
56 status date after the building on or containing such tax lot receives
S. 6446--A 3
1 its certificate of occupancy, unless, [it is located in a geographic
2 exclusion area as defined in subdivision seven of this section and
3 complies with the provisions of such subdivision] it complies with the
4 requirements of item a or b of clause (D) of subparagraph (iii) of para-
5 graph (a) of subdivision two of this section or the requirements of item
6 a or b of clause (A) of subparagraph (iv) of paragraph (a) of subdivi-
7 sion two of this section. The portion of the assessed valuation of all
8 non-residential tax lots in the building on or containing such non-resi-
9 dential tax lots exempted from real property taxation in any year pursu-
10 ant to this section shall not exceed a cumulative total equal to the
11 annual limit on or after the first taxable status date after the build-
12 ing on or containing such non-residential tax lots receives its certif-
13 icate of occupancy. A dwelling unit that is located in two or more tax
14 lots shall be ineligible to receive any benefits under this section.
15 § 6. Subparagraph (ii) of paragraph (d) of subdivision 11 of section
16 421-a of the real property tax law, as added by chapter 618 of the laws
17 of 2007, is amended to read as follows:
18 (ii) In the County of Queens, Beginning at a point where 131st Street
19 meets Fowler Avenue, thence easterly along Fowler Avenue to College
20 Point Boulevard, thence northerly on said Boulevard to Interstate 678,
21 thence southerly [to Flushing #3 Municipal Parking Field, thence south-
22 erly along said street to it's] along said Interstate to its inter-
23 section with Fowler Avenue, the point of beginning.
24 § 7. Subdivision 13 of section 421-a of the real property tax law, as
25 amended by chapter 619 of the laws of 2007, is amended to read as
26 follows:
27 13. [A] (a) As used in this subdivision, "UDC Large Scale Project"
28 shall mean a multi-phase project that (i) includes the development of at
29 least twenty-five hundred new dwelling units [and (i)], (ii) is being
30 implemented pursuant to a General Project Plan adopted by the New York
31 State Urban Development Corporation and approved by Public Authorities
32 Control Board or is otherwise set forth in agreements with the New York
33 State Urban Development Corporation [and (ii)], (iii) includes a devel-
34 opment over a single area containing a number of contiguous city blocks,
35 [shall be eligible for benefits pursuant to this section notwithstanding
36 paragraph (f) of subdivision seven of this section if in the aggregate
37 twenty percent of the units in such development are affordable to and
38 occupied or available for occupancy by individuals or families the aver-
39 age of whose incomes at the time of initial occupancy do not exceed
40 seventy percent of the area median incomes adjusted for family size and
41 the rent for such units does not exceed thirty percent of eighty percent
42 of the area median incomes adjusted for family size] and (iv) the units
43 in which, in the aggregate for each successive fifteen hundred units of
44 the project rather than for each multiple dwelling containing such
45 fifteen hundred units and in the aggregate for the entire project rather
46 than for each multiple dwelling in the project, meet the requirements of
47 paragraph (c) of subdivision seven of this section.
48 (b) Except as otherwise provided in subparagraph (iv) of paragraph (a)
49 of this subdivision, no portion of a UDC Large Scale Project shall be
50 subject to the requirements of paragraph (c) of subdivision seven of
51 this section.
52 (c) With respect to any multiple dwelling in a UDC Large Scale Project
53 that meets the requirements of paragraph (c) of subdivision seven of
54 this section, the period of tax benefits awarded to such multiple dwell-
55 ing shall be the same as the period of tax benefits awarded under clause
56 (A) of subparagraph (iii) of paragraph (a) of subdivision two of this
S. 6446--A 4
1 section. With respect to any multiple dwelling in a UDC Large Scale
2 Project that does not meet the requirements of paragraph (c) of subdivi-
3 sion seven of this section, the period of tax benefits awarded to such
4 multiple dwelling shall be the same as the period of tax benefits
5 awarded under clause (A) of subparagraph (ii) of paragraph (a) of subdi-
6 vision two of this section. The tax benefits awarded to any multiple
7 dwelling in a UDC Large Scale Project shall commence upon the commence-
8 ment of construction of such multiple dwelling, provided, however, that
9 such multiple dwelling meets all of the requirements for tax benefits
10 pursuant to this section. For each successive fifteen hundred units of a
11 UDC Large Scale Project, the local housing agency must certify the
12 completion of any affordable units, as defined in subparagraph (i) of
13 paragraph (a) of subdivision seven of this section, required to qualify
14 any multiple dwelling or multiple dwellings comprising such fifteen
15 hundred units for any tax benefits awarded pursuant to this paragraph.
16 The existence of such special certification requirement and its finan-
17 cial impact upon all units, including, but not limited to, revocation of
18 tax benefits awarded pursuant to this paragraph if such special certif-
19 ication requirement is not met, shall be disclosed as a special risk in
20 any offering plan for any units in a UDC Large Scale Project.
21 (d) With respect to any UDC Large Scale Project located in whole or in
22 part within community district number eight in the borough of Brooklyn
23 in the city of New York, notwithstanding the provisions of subparagraph
24 (ii) of paragraph (d) of subdivision seven of this section, the priority
25 specified in such subparagraph shall be granted to the residents of
26 community districts two, three, six and eight of such borough.
27 § 8. Subdivision 10 of section 421-a of the real property tax law, as
28 added by chapter 618 of the laws of 2007, is amended to read as follows:
29 10. (a) The local housing agency shall implement procedures to insure
30 that affordable units created pursuant to this section, or units which
31 are required to be occupied by persons or families who meet specified
32 income limits pursuant to the provisions of a local law enacted pursuant
33 to this section, continue to be affordable as required by the provisions
34 of this section or such local law, and that units made subject to rent
35 stabilization remain subject thereto as required by the provisions of
36 this section. Such procedures shall include but shall not be limited to
37 the following:
38 (i) all rent stabilization registrations required to be filed on or
39 after January first, two thousand eight shall contain a designation
40 which identifies all units that are subject to the provisions of this
41 section as "421-a units" and specifically identifies affordable units
42 created pursuant to this section and units which are required to be
43 occupied by persons or families who meet specified income limits pursu-
44 ant to the provisions of a local law enacted pursuant to this section as
45 "421-a affordable units" and shall contain an explanation of the
46 requirements that apply to all such units. The owner of a unit that is
47 subject to the provisions of this section shall, in addition to comply-
48 ing with the requirements of section 26-517 of the rent stabilization
49 law, file a copy of the rent registration for each such unit with the
50 local housing agency;
51 (ii) the local housing agency with cooperation of the division of
52 housing and community renewal shall monitor and enforce compliance with
53 the filing requirements of this section;
54 (iii) the local housing agency shall create a report which, at a mini-
55 mum, contains the following information for every building which
56 receives benefits pursuant to this section: address, commencement and
S. 6446--A 5
1 termination date of the benefits, total number of residential units,
2 number of "421-a units" and number of "421-a affordable units", apart-
3 ment number or other designation of such units and the rent for each of
4 such units. The local housing agency with the cooperation of the divi-
5 sion of housing and community renewal shall maintain, and update such
6 report no less than annually, with information secured from annual
7 registrations. Such reports shall be available for public inspection in
8 a form that assigns a unique designation to each unit other than its
9 actual apartment number to maintain the privacy of such information; and
10 (iv) the local housing agency shall monitor any change in such infor-
11 mation, shall investigate any such changes which indicate a failure to
12 comply with the provisions of this section, and shall take appropriate
13 action based on its findings.
14 (b) Failure to comply with the provisions of this section which
15 require the creation and maintenance of affordable units pursuant to
16 this section, or units which are required to be occupied by persons or
17 families who meet specified income limits pursuant to the provisions of
18 a local law enacted pursuant to this section, at any time during the
19 duration of the building's tax exemption shall result in revocation of
20 any benefits under this section for the period of such non-compliance.
21 If an on-going pattern of non-compliance is found to exist, such bene-
22 fits may be revoked from their inception. Notwithstanding the revoca-
23 tion of benefits for a building pursuant to the provisions of this
24 subdivision, all units in such building shall continue to remain subject
25 to the provisions of the rent stabilization law for the entire intended
26 period as if the benefits had not been revoked.
27 (c) The provisions of this subdivision relating to enforcement of the
28 provisions of this section shall be in addition to any other provisions
29 contained in this section or any other law.
30 (d) The revocation of benefits for noncompliance with this section
31 shall not exempt any unit from continued compliance with the require-
32 ments of this section.
33 § 9. This act shall take effect immediately; provided, however, that
34 sections one, five and seven of this act shall be deemed to have been in
35 full force and effect on the same date and in the same manner as chapter
36 619 of the laws of 2007 took effect; and provided, further, that
37 sections two, three, four, six and eight of this act shall be deemed to
38 have been in full force and effect on the same date and in the same
39 manner as chapter 618 of the laws of 2007 took effect.
