Bill Text: NY A10252 | 2011-2012 | General Assembly | Amended


Bill Title: Relates to interim multiple dwellings in a city with a population of one million or more persons.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2012-06-18 - amend and recommit to rules 10252c [A10252 Detail]

Download: New_York-2011-A10252-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                       10252--C
                                 I N  A S S E M B L Y
                                     May 16, 2012
                                      ___________
       Introduced  by  M.  of  A.  V. LOPEZ,  LENTOL,  MILLMAN -- read once and
         referred to the Committee on Housing -- reported and referred  to  the
         Committee  on Codes -- reported and referred to the Committee on Rules
         -- Rules Committee discharged,  bill  amended,  ordered  reprinted  as
         amended  and  recommitted  to the Committee on Rules -- again reported
         from said committee with amendments, ordered reprinted as amended  and
         recommitted  to  said  committee -- again reported from said committee
         with amendments, ordered reprinted as amended and recommitted to  said
         committee
       AN ACT to amend the multiple dwelling law and the real property tax law,
         in  relation to interim multiple dwellings in a city with a population
         of one million or more
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Subdivision 5 of section 281 of the multiple dwelling law,
    2  as amended by chapter 139 of the laws of 2011, is  amended  to  read  as
    3  follows:
    4    5. Notwithstanding the provisions of paragraphs (i), (iii) and (iv) of
    5  subdivision  two of this section, but subject to paragraphs (i) and (ii)
    6  of subdivision one of this section and paragraph (ii) of subdivision two
    7  of this section, the term  "interim  multiple  dwelling"  shall  include
    8  buildings,  structures or portions thereof that are located in a city of
    9  more than one  million  persons  which  were  occupied  for  residential
   10  purposes  as  the residence or home of any three or more families living
   11  independently from one another for a period of twelve consecutive months
   12  during the period commencing January  first,  two  thousand  eight,  and
   13  ending December thirty-first, two thousand nine, provided that the unit:
   14  is  not  located  in  a basement or cellar and has at least one entrance
   15  that does not require passage through another residential unit to obtain
   16  access to the unit, has at least one window opening onto a street  or  a
   17  lawful  yard or court as defined in the zoning resolution for such muni-
   18  cipality, and is at least [five hundred fifty] FOUR HUNDRED square  feet
   19  in  area.  The term "interim multiple dwelling" as used in this subdivi-
   20  sion shall not include (i) any building in an industrial  business  zone
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15755-08-2
       A. 10252--C                         2
    1  established  pursuant to chapter six-D of title twenty-two of the admin-
    2  istrative code of the city of New York except that  a  building  in  the
    3  Williamsburg/Greenpoint  or North Brooklyn industrial business zones and
    4  a  building  located  in that portion of the Long Island city industrial
    5  business zone that has frontage on either side of  forty-seventh  avenue
    6  or is located north of forty-seventh avenue and south of Skillman avenue
    7  or in that portion of the Long Island city industrial business zone that
    8  is located north of forty-fourth drive, south of Queens plaza north, and
    9  west  of twenty-third street may be included in the term "interim multi-
   10  ple dwelling," or (ii) units in any building, OTHER THAN A BUILDING THAT
   11  IS ALREADY DEFINED AS AN "INTERIM MULTIPLE DWELLING" PURSUANT TO  SUBDI-
   12  VISION  ONE,  TWO, THREE OR FOUR OF THIS SECTION, that, at the time this
   13  subdivision shall  take  effect  AND  CONTINUING  AT  THE  TIME  OF  THE
   14  SUBMISSION  OF AN APPLICATION FOR COVERAGE BY ANY PARTY, also contains a
   15  use actively and currently pursued, which use is set forth in use groups
   16  fifteen through eighteen, as described in the zoning resolution of  such
   17  municipality in effect on June twenty-first, two thousand ten, and which
   18  the  loft  board  has  determined  in rules and regulation is inherently
   19  incompatible with residential use in the same building, provided that if
   20  a building does not contain such active uses at the time  this  subdivi-
   21  sion  takes effect, no subsequent use by the owner of the building shall
   22  eliminate the protections of this section for any residential  occupants
   23  in the building already qualified for such protections. The term "inter-
   24  im  multiple  dwelling,"  as used in this subdivision shall also include
   25  buildings, structures or portions thereof that are located north of West
   26  24th Street and south of West 27th Street and west of tenth  avenue  and
   27  east of eleventh avenue in a city of more than one million persons which
   28  were  occupied  for residential purposes as the residence or home of any
   29  two or more families living independently from one another for a  period
   30  of twelve consecutive months during the period commencing January first,
   31  two  thousand eight, and ending December thirty-first, two thousand nine
   32  and subject to all the conditions and limitations  of  this  subdivision
   33  other  than  the  number  of  units  in the building. A reduction in the
   34  number of occupied residential units in a  building  after  meeting  the
   35  aforementioned  twelve consecutive month requirement shall not eliminate
   36  the protections of this section for any remaining residential  occupants
   37  qualified  for  such protections. Non-residential space in a building as
   38  of the effective date of this subdivision shall be offered for  residen-
   39  tial  use only after the obtaining of a residential certificate of occu-
   40  pancy for such space and such space shall be exempt from  this  article,
   41  even if a portion of such building may be an interim multiple dwelling.
   42    S  2.  Subdivision  2  of section 286 of the multiple dwelling law, as
   43  amended by chapter 414 of the laws of 1999, subparagraphs (A) and (B) of
   44  paragraph (ii) and paragraph (iii) as amended by chapter 135 of the laws
   45  of 2010, is amended to read as follows:
   46    2. (i) Prior to compliance with safety and fire  protection  standards
   47  of  article seven-B of this chapter, residential occupants qualified for
   48  protection pursuant to this article shall be entitled to continued occu-
   49  pancy, provided that the unit is their primary residence, and shall  pay
   50  the same rent, including escalations, specified in their lease or rental
   51  agreement  to the extent to which such lease or rental agreement remains
   52  in effect or, in the absence of a lease or rental  agreement,  the  same
   53  rent  most recently paid and accepted by the owner; if there is no lease
   54  or other rental agreement in effect, rent adjustments prior  to  article
   55  seven-B  compliance  shall be in conformity with guidelines to be set by
       A. 10252--C                         3
    1  the loft board for such residential occupants within six months from the
    2  effective date of this article.
    3    (ii)  In  addition to any rent adjustment pursuant to paragraph (i) of
    4  this subdivision, on or after June twenty-first, nineteen hundred  nine-
    5  ty-two,  the  rent  for  residential units in interim multiple dwellings
    6  that are not yet in compliance with the requirements of subdivision  one
    7  of  section two hundred eighty-four of this article shall be adjusted as
    8  follows:
    9    (A) Upon the owners' filing of an alteration application, as  required
   10  by  paragraph  (ii),  (iii),  (iv),  (v),  or (vi) of subdivision one of
   11  section two hundred eighty-four of this article, an adjustment equal  to
   12  [six]  THREE  percent  of the rent in effect at the time the owner files
   13  the alteration application.
   14    (B) Upon obtaining an alteration  permit,  as  required  by  paragraph
   15  (ii),  (iii),  (iv),  (v),  or  (vi)  of  subdivision one of section two
   16  hundred eighty-four of this article,  an  adjustment  equal  to  [eight]
   17  THREE  percent  of  the rent in effect at the time the owner obtains the
   18  alteration permit.
   19    (C) Upon achieving compliance with the standards of  safety  and  fire
   20  protection set forth in article seven-B of this chapter for the residen-
   21  tial portions of the building, an adjustment equal to [six] FOUR percent
   22  of the rent in effect at the time the owner achieves such compliance.
   23    (D)  Owners who filed an alteration application prior to the effective
   24  date of this subparagraph shall be entitled to a prospective  adjustment
   25  equal  to six percent of the rent on the effective date of this subpara-
   26  graph.
   27    (E) Owners who obtained an alteration permit  prior  to  June  twenty-
   28  first,  nineteen  hundred  ninety-two shall be entitled to a prospective
   29  adjustment equal to fourteen percent of the rent on  June  twenty-first,
   30  nineteen hundred ninety-two.
   31    (F)  Owners  who  achieved compliance with the standards of safety and
   32  fire protection set forth in article seven-B of  this  chapter  for  the
   33  residential  portions  of the building prior to June twenty-first, nine-
   34  teen hundred ninety-two shall be entitled to  a  prospective  adjustment
   35  equal  to  twenty  percent  of  the  rent on June twenty-first, nineteen
   36  hundred ninety-two.
   37    (iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
   38  sion shall not apply to units which were rented at  market  value  after
   39  June  twenty-first,  nineteen hundred eighty-two and prior to June twen-
   40  ty-first, nineteen hundred ninety-two. This paragraph shall not apply to
   41  units made subject to this article by subdivision five  of  section  two
   42  hundred eighty-one of this article.
   43    (iv)  Payment  of  any  rent adjustments pursuant to paragraph (ii) of
   44  this subdivision shall commence  the  month  immediately  following  the
   45  month in which the act entitling the owner to the adjustment occurred.
   46    S 3. The provisions of subdivision (c) of section 11-245 of the admin-
   47  istrative  code  of  the city of New York shall not be applicable to any
   48  multiple dwelling located on lots numbered 13 and 14 of Manhattan  block
   49  numbered  51, lots numbered 17, 18, and 21 of Manhattan block number 90,
   50  lots numbered 7, 8, 10, 11, 57 and 111 of Manhattan block numbered 1010,
   51  and lots numbered 33, 34 and 35 of Manhattan block numbered 1259 as such
   52  lots and blocks are numbered as of the date this act shall  have  become
   53  law,  provided that the construction of such multiple dwellings on those
   54  lots commences on or after January 1, 2007, and on or  before  June  21,
   55  2017,  and  provided that for all such multiple dwellings the department
   56  of housing preservation and development of New York City shall impose  a
       A. 10252--C                         4
    1  requirement  and  certify  that  twenty percent of the units on site are
    2  affordable to households of low and moderate income pursuant to subdivi-
    3  sion 7 of section 421-a of the real property tax law. The provisions  of
    4  subdivision (c) of section 11-245 of the administrative code of the city
    5  of  New  York  shall  not be applicable to any multiple dwelling that is
    6  located on lot 10 of Manhattan block number 123, as such lot  and  block
    7  are  numbered  as  of  the date this act shall have become law, provided
    8  that construction of such multiple dwelling commenced on or after  Janu-
    9  ary  1,  2007, and on or before June 21, 2012, and provided further that
   10  the individual or agent thereof seeking  benefits  pursuant  to  section
   11  421-a of the real property tax law enters into and fulfills the require-
   12  ments of a memorandum of understanding with the city of New York Depart-
   13  ment  of  Housing  Preservation and Development to fund in an amount not
   14  less than $9 million the construction of affordable rental housing with-
   15  in the City of New York, provided, however, that  such  amount  required
   16  shall  be reduced by the value of negotiable certificates that the indi-
   17  vidual or agent thereof seeking benefits purchased, pursuant to  section
   18  6-08  of  title  28  of  the rules of the city of New York as such rules
   19  existed as of the date this act shall have become law, in order to enti-
   20  tle such multiple dwelling to the benefits pursuant to section 421-a  of
   21  the  real  property  tax  law  for  a  specified  number of units in the
   22  geographic exclusion area, provided that  such  negotiable  certificates
   23  were  generated  by  a  written agreement with the Department of Housing
   24  Preservation and Development, and provided further that, notwithstanding
   25  any other provision of law, benefits granted pursuant to  section  421-a
   26  of the real property tax law for such multiple dwelling shall be granted
   27  as  if  construction commenced as of the date this act shall have become
   28  law.
   29    S 4. Subparagraph (i) of paragraph (a) of  subdivision  2  of  section
   30  421-a  of  the real property tax law, as amended by section 38 of part B
   31  of chapter 97 of the laws of 2011, is amended to read as follows:
   32    (i) Within a city having a population of  one  million  or  more,  new
   33  multiple  dwellings,  except  hotels,  shall be exempt from taxation for
   34  local purposes, other than assessments for local improvements,  for  the
   35  tax  year  or years immediately following taxable status dates occurring
   36  subsequent  to  the  commencement  and  prior  to  the   completion   of
   37  construction,  but  not  to exceed three such tax years, [except for new
   38  multiple dwellings the construction of which commenced  between  January
   39  first,  two thousand seven, and June thirtieth, two thousand nine, shall
   40  have an additional thirty-six months to complete construction and  shall
   41  be  eligible  for full exemption from taxation for the first three years
   42  of the period of  construction;  any  eligible  project  that  seeks  to
   43  utilize  the  six-year period of construction authorized by this section
   44  must apply for a preliminary certificate of eligibility within one  year
   45  of  the  effective  date of the rent act of 2011, provided, however that
   46  such multiple dwellings shall be eligible for a maximum of  three  years
   47  of  benefits  during  the construction period,] and shall continue to be
   48  exempt from such taxation in tax years immediately following the taxable
   49  status date first occurring after the expiration of the exemption herein
   50  conferred during construction so long  as  used  at  the  completion  of
   51  construction  for dwelling purposes for a period not to exceed ten years
   52  in the aggregate after the taxable status date immediately following the
   53  completion thereof, as follows:
   54    (A) except as otherwise provided herein there shall be full  exemption
   55  from  taxation  during the period of construction or the period of three
   56  years immediately  following  commencement  of  construction,  whichever
       A. 10252--C                         5
    1  expires  sooner,  [except for new multiple dwellings the construction of
    2  which commenced between January first,  two  thousand  seven,  and  June
    3  thirtieth, two thousand nine, shall have an additional thirty-six months
    4  to  complete  construction and shall be eligible for full exemption from
    5  taxation for the first three years of the period  of  construction;  any
    6  eligible   project   that  seeks  to  utilize  the  six-year  period  of
    7  construction authorized by this section must  apply  for  a  preliminary
    8  certificate  of eligibility within one year of the effective date of the
    9  rent act of 2011, provided, however that such multiple  dwellings  shall
   10  be  eligible  for  a  maximum  of  three  years  of  benefits during the
   11  construction period,] and for two years following such period;
   12    (B) followed by two years of exemption from eighty per  cent  of  such
   13  taxation;
   14    (C)  followed  by  two  years of exemption from sixty per cent of such
   15  taxation;
   16    (D) followed by two years of exemption from forty  per  cent  of  such
   17  taxation;
   18    (E)  followed  by  two years of exemption from twenty per cent of such
   19  taxation;
   20    The following table  shall  illustrate  the  computation  of  the  tax
   21  exemption:
   22                 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
   23                                                    Exemption
   24  During Construction (maximum three years)[;       100%
   25  except construction commenced between January
   26  first, two thousand seven and June
   27  thirtieth, two thousand nine (maximum
   28  three years)]
   29  Following completion of work
   30  Year:
   31   1                                                100%
   32   2                                                100
   33   3                                                 80
   34   4                                                 80
   35   5                                                 60
   36   6                                                 60
   37   7                                                 40
   38   8                                                 40
   39   9                                                 20
   40  10                                                 20
   41    S 5. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
   42  of  section 421-a of the real property tax law, as amended by section 39
   43  of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
   44  follows:
   45    (A) Within a city having a population of one million or more the local
   46  housing  agency may adopt rules and regulations providing that except in
   47  areas excluded by local law new multiple dwellings, except hotels, shall
   48  be exempt from taxation for local purposes, other than  assessments  for
   49  local  improvements,  for  the  tax  year or years immediately following
   50  taxable status dates occurring subsequent to the commencement and  prior
   51  to  the  completion  of  construction,  but not to exceed three such tax
   52  years, [except for new multiple  dwellings  the  construction  of  which
       A. 10252--C                         6
    1  commenced between January first, two thousand seven, and June thirtieth,
    2  two  thousand  nine,  shall  have  an  additional  thirty-six  months to
    3  complete construction and shall be  eligible  for  full  exemption  from
    4  taxation  for  the  first three years of the period of construction; any
    5  eligible  project  that  seeks  to  utilize  the  six-year   period   of
    6  construction  authorized  by  this  section must apply for a preliminary
    7  certificate of eligibility within one year of the effective date of  the
    8  rent  act  of 2011, provided, however that such multiple dwellings shall
    9  be eligible for  a  maximum  of  three  years  of  benefits  during  the
   10  construction period,] and shall continue to be exempt from such taxation
   11  in  tax years immediately following the taxable status date first occur-
   12  ring after the expiration of the exemption herein conferred during  such
   13  construction  so  long  as  used  at  the completion of construction for
   14  dwelling purposes for a period not to exceed fifteen years in the aggre-
   15  gate, as follows:
   16    a. except as otherwise provided herein there shall be  full  exemption
   17  from  taxation  during the period of construction or the period of three
   18  years immediately  following  commencement  of  construction,  whichever
   19  expires  sooner,  [except for new multiple dwellings the construction of
   20  which commenced between January first,  two  thousand  seven,  and  June
   21  thirtieth, two thousand nine, shall have an additional thirty-six months
   22  to  complete  construction and shall be eligible for full exemption from
   23  taxation for the first three years of the period  of  construction;  any
   24  eligible   project   that  seeks  to  utilize  the  six-year  period  of
   25  construction authorized by this section must  apply  for  a  preliminary
   26  certificate  of eligibility within one year of the effective date of the
   27  rent act of 2011, provided, however that such multiple  dwellings  shall
   28  be  eligible  for  a  maximum  of  three  years  of  benefits during the
   29  construction period,] and for eleven years following such period;
   30    b. followed by one year of exemption from eighty percent of such taxa-
   31  tion;
   32    c. followed by one year of exemption from sixty percent of such  taxa-
   33  tion;
   34    d.  followed by one year of exemption from forty percent of such taxa-
   35  tion;
   36    e. followed by one year of exemption from twenty percent of such taxa-
   37  tion.
   38    S 6. Clause (A) of subparagraph (iii) of paragraph (a) of  subdivision
   39  2  of  section 421-a of the real property tax law, as amended by section
   40  40 of part B of chapter 97 of the laws of 2011, is amended  to  read  as
   41  follows:
   42    (A) Within a city having a population of one million or more the local
   43  housing agency may adopt rules and regulations providing that new multi-
   44  ple  dwellings,  except  hotels, shall be exempt from taxation for local
   45  purposes, other than assessments for local  improvements,  for  the  tax
   46  year  or  years  immediately  following  taxable  status dates occurring
   47  subsequent  to  the  commencement  and  prior  to  the   completion   of
   48  construction,  but  not  to exceed three such tax years, [except for new
   49  multiple dwellings the construction of which commenced  between  January
   50  first,  two thousand seven, and June thirtieth, two thousand nine, shall
   51  have an additional thirty-six months to complete construction and  shall
   52  be  eligible  for full exemption from taxation for the first three years
   53  of the period of  construction;  any  eligible  project  that  seeks  to
   54  utilize  the  six-year period of construction authorized by this section
   55  must apply for a preliminary certificate of eligibility within one  year
   56  of  the  effective  date of the rent act of 2011, provided, however that
       A. 10252--C                         7
    1  such multiple dwellings shall be eligible for a maximum of  three  years
    2  of  benefits  during  the construction period,] and shall continue to be
    3  exempt from such taxation in tax years immediately following the taxable
    4  status date first occurring after the expiration of the exemption herein
    5  conferred  during such construction so long as used at the completion of
    6  construction for dwelling purposes for a period not  to  exceed  twenty-
    7  five years in the aggregate, provided that the area in which the project
    8  is situated is a neighborhood preservation program area as determined by
    9  the local housing agency as of June first, nineteen hundred eighty-five,
   10  or  is  a  neighborhood  preservation area as determined by the New York
   11  city planning commission as of June first, nineteen hundred eighty-five,
   12  or is an area that was eligible for mortgage insurance provided  by  the
   13  rehabilitation  mortgage insurance corporation as of May first, nineteen
   14  hundred ninety-two or is an area receiving funding  for  a  neighborhood
   15  preservation  project  pursuant  to the neighborhood reinvestment corpo-
   16  ration act (42 U.S.C. SS180 et seq.)  as of June first, nineteen hundred
   17  eighty-five, as follows:
   18    a. except as otherwise provided herein there shall be  full  exemption
   19  from  taxation  during the period of construction or the period of three
   20  years immediately  following  commencement  of  construction,  whichever
   21  expires  sooner,  [except for new multiple dwellings the construction of
   22  which commenced between January first,  two  thousand  seven,  and  June
   23  thirtieth, two thousand nine, shall have an additional thirty-six months
   24  to  complete  construction and shall be eligible for full exemption from
   25  taxation for the first three years of the period  of  construction;  any
   26  eligible   project   that  seeks  to  utilize  the  six-year  period  of
   27  construction authorized by this section must  apply  for  a  preliminary
   28  certificate  of eligibility within one year of the effective date of the
   29  rent act of 2011, provided, however that such multiple  dwellings  shall
   30  be  eligible  for  a  maximum  of  three  years  of  benefits during the
   31  construction period,] and for twenty-one years following such period;
   32    b. followed by one year of exemption from eighty percent of such taxa-
   33  tion;
   34    c. followed by one year of exemption from sixty percent of such  taxa-
   35  tion;
   36    d.  followed by one year of exemption from forty percent of such taxa-
   37  tion;
   38    e. followed by one year of exemption from twenty percent of such taxa-
   39  tion.
   40    S 7. Severability clause. If any clause, sentence, paragraph, subdivi-
   41  sion, section or subpart of this act shall be adjudged by any  court  of
   42  competent  jurisdiction  to  be invalid, such judgment shall not affect,
   43  impair, or invalidate the remainder thereof, but shall  be  confined  in
   44  its  operation  to the clause, sentence, paragraph, subdivision, section
   45  or subpart thereof directly involved in the controversy  in  which  such
   46  judgment  shall  have  been  rendered.  It  is hereby declared to be the
   47  intent of the legislature that this act would have been enacted even  if
   48  such invalid provisions had not been included herein.
   49    S  8.  This act shall take effect immediately, provided, however, that
   50  the provisions of section one of this act shall be deemed to  have  been
   51  in  full  force  and  effect  on  and  after  July 1, 2010; and provided
   52  further, however, that the provisions of section three of this act shall
   53  be deemed to have been in full force and effect on  and  after  December
   54  31, 2007; and provided further, however, that the provisions of sections
   55  four,  five  and  six  of  this act shall be deemed to have been in full
   56  force and effect on and after December 28, 2010; and provided that, with
       A. 10252--C                         8
    1  respect to any application for a preliminary certificate of  eligibility
    2  that  is  filed  no  later  than  June  24, 2012, or that is filed for a
    3  project that was the subject  of  mortgage  foreclosure  proceedings  or
    4  other  lien  enforcement  litigation  by  a lender on or before June 24,
    5  2012, such project shall be subject to that portion of the definition of
    6  "commence" contained in item (1) of clause (iv) of subparagraph  (2)  of
    7  paragraph  (b)  of subdivision (a) of section 6-09 of title twenty-eight
    8  of the rules of the city of New York.
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