Bill Text: NY S03226 | 2019-2020 | General Assembly | Introduced

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Bill Title: Alters tax exemption programs for the development of new and affordable housing; defines "initial construction period" and "extended construction period"; makes related changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S03226 Detail]

Download: New_York-2019-S03226-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3226
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 4, 2019
                                       ___________
        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development
        AN  ACT  to  amend the real property tax law, the administrative code of
          the city of New York and the New York city  charter,  in  relation  to
          changing tax exemption programs for the development of new and afford-
          able housing
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 1 of section 421-a of the real property tax law
     2  is amended by adding two new paragraphs e and f to read as follows:
     3    e. "Initial Construction Period." The period of time  needed  for  the
     4  construction  of  a  new  multiple dwelling or the period of three years
     5  immediately following commencement of  construction,  whichever  expires
     6  sooner, provided that construction must be completed upon the expiration
     7  of  this  period  in order for such multiple dwelling to remain eligible
     8  for the exemption provided in this section.
     9    f. "Extended Construction Period."  The  period  of  time  immediately
    10  following  the  initial  construction  period  needed  to  complete  the
    11  construction of a new multiple dwelling or the period  of  three  years,
    12  whichever expires sooner.
    13    § 2. Paragraph (a) of subdivision 2 of section 421-a of the real prop-
    14  erty  tax  law,  as amended by chapter 288 of the laws of 1985, subpara-
    15  graph (i), clause (A) of subparagraph (ii) and clause  (A)  of  subpara-
    16  graph  (iii)  as amended by chapter 4 of the laws of 2013, clause (E) of
    17  subparagraph (iii) as added by chapter 618 of the laws of 2007, subpara-
    18  graph (iv) as added by chapter 832 of the laws of 1992,  clause  (A)  of
    19  subparagraph  (iv) as amended by section 63-a of part A of chapter 20 of
    20  the laws of 2015, is amended to read as follows:
    21    (a) (i) (A) Within a city having a population of one million or  more,
    22  new multiple dwellings, except hotels, shall be exempt from taxation for
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09171-01-9
        S. 3226                             2
     1  local  purposes,  other than assessments for local improvements, for the
     2  tax year or years immediately following taxable status  dates  occurring
     3  subsequent  to  the  commencement  and  prior  to  the completion of the
     4  initial construction period, but not to exceed three such tax years, and
     5  shall  continue to be exempt from such taxation in tax years immediately
     6  following the taxable status date first occurring after  the  expiration
     7  of  the  exemption  herein conferred during the initial construction [so
     8  long as used at the completion of construction  for  dwelling  purposes]
     9  period  for  a period not to exceed ten years in the aggregate after the
    10  taxable status date immediately following the  completion  [thereof]  of
    11  the  initial  construction  period  and during the extended construction
    12  period if such period is needed, as follows:
    13    [(A)] a. except as otherwise  provided  herein  there  shall  be  full
    14  exemption from taxation during the [period of construction or the period
    15  of  three  years  immediately  following  commencement  of construction,
    16  whichever expires sooner] initial construction period, and for two years
    17  following such period;
    18    [(B)] b. followed by two years of exemption  from  eighty  [per  cent]
    19  percent of such taxation;
    20    [(C)]  c.  followed  by  two  years of exemption from sixty [per cent]
    21  percent of such taxation;
    22    [(D)] d. followed by two years of  exemption  from  forty  [per  cent]
    23  percent of such taxation;
    24    [(E)]  e.  followed  by  two years of exemption from twenty [per cent]
    25  percent of such taxation;
    26    (B) Upon the completion of the initial construction period or extended
    27  construction period, if needed, the new multiple dwelling must  be  used
    28  for dwelling purposes.
    29    The  following  table  shall  illustrate  the  computation  of the tax
    30  exemption:
    31                 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
    32                                                    Exemption
    33  During Initial Construction                       100%
    34  Period (maximum three years)
    35  Following completion of [work] the initial
    36  construction period
    37  Year:
    38   1                                                100%
    39   2                                                100
    40   3                                                 80
    41   4                                                 80
    42   5                                                 60
    43   6                                                 60
    44   7                                                 40
    45   8                                                 40
    46   9                                                 20
    47  10                                                 20
    48    (ii) (A) Within a city having a population of one million or more  the
    49  local  housing  agency  may  adopt  rules and regulations providing that
    50  except in areas excluded by local law  new  multiple  dwellings,  except
    51  hotels,  shall  be  exempt  from taxation for local purposes, other than
    52  assessments for local improvements, for the tax year or years immediate-
    53  ly following taxable status dates occurring subsequent to the  commence-
        S. 3226                             3
     1  ment and prior to the completion of the initial construction period, but
     2  not to exceed three such tax years, and shall continue to be exempt from
     3  such taxation in tax years immediately following the taxable status date
     4  first  occurring  after the expiration of the exemption herein conferred
     5  during  [such]  the  initial  construction  [so  long  as  used  at  the
     6  completion of construction for dwelling purposes] period, and during the
     7  extended  construction period if such period is needed, for a period not
     8  to exceed fifteen years in the aggregate, as follows:
     9    a. except as otherwise provided herein there shall be  full  exemption
    10  from  taxation during the period of construction or the [period of three
    11  years immediately  following  commencement  of  construction,  whichever
    12  expires  sooner]  initial  construction  period,  and  for  eleven years
    13  following such period;
    14    b. followed by one year of exemption from eighty percent of such taxa-
    15  tion;
    16    c. followed by one year of exemption from sixty percent of such  taxa-
    17  tion;
    18    d.  followed by one year of exemption from forty percent of such taxa-
    19  tion;
    20    e. followed by one year of exemption from twenty percent of such taxa-
    21  tion.
    22    (B) The benefits of this subparagraph shall not be available in  areas
    23  made  ineligible for the benefits of this section by a local law enacted
    24  pursuant to paragraph (i) of this subdivision  [two  of  this  section],
    25  notwithstanding  any exceptions to ineligibility contained in such local
    26  law for certain types of projects in such areas.
    27    (C) Unless excluded by local law, in the city of New York the benefits
    28  of this subparagraph shall be available in the borough of Manhattan  for
    29  tax  lots  now  existing  or  hereafter  created south of or adjacent to
    30  either side of one hundred tenth street only if:
    31    a. the construction is carried out with the substantial assistance  of
    32  grants,  loans  or  subsidies from any federal, state or local agency or
    33  instrumentality, or
    34    b. the local housing agency has imposed a requirement or has certified
    35  that twenty percent of the units be affordable to families  of  low  and
    36  moderate income.
    37    (D) Upon the completion of the initial construction period or extended
    38  construction  period,  if needed, the new multiple dwelling must be used
    39  for dwelling purposes.
    40    The following table shall illustrate the computation of the exemption:
    41                 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
    42                                                    Exemption
    43  During Initial Construction                       100%
    44  Period (maximum three years)
    45  Following completion of [work] the initial construction
    46  period
    47  Year:
    48   1 through 11                                     100%
    49  12                                                 80
    50  13                                                 60
    51  14                                                 40
    52  15                                                 20
        S. 3226                             4
     1    (iii) (A) Within a city having a population of one million or more the
     2  local housing agency may adopt rules and regulations providing that  new
     3  multiple  dwellings,  except  hotels,  shall be exempt from taxation for
     4  local purposes, other than assessments for local improvements,  for  the
     5  tax  year  or years immediately following taxable status dates occurring
     6  subsequent to the commencement  and  prior  to  the  completion  of  the
     7  initial construction period, but not to exceed three such tax years, and
     8  shall  continue to be exempt from such taxation in tax years immediately
     9  following the taxable status date first occurring after  the  expiration
    10  of the exemption herein conferred during [such] the initial construction
    11  [so  long  as  used  at  the  completion  of  construction  for dwelling
    12  purposes] period, and during the extended construction  period  if  such
    13  period  is  needed,  for a period not to exceed twenty-five years in the
    14  aggregate, provided that the area in which the project is situated is  a
    15  neighborhood  preservation program area as determined by the local hous-
    16  ing agency as of June first,  nineteen  hundred  eighty-five,  or  is  a
    17  neighborhood  preservation area as determined by the New York city plan-
    18  ning commission as of June first, nineteen hundred eighty-five, or is an
    19  area that was eligible for mortgage insurance provided by the  rehabili-
    20  tation  mortgage insurance corporation as of May first, nineteen hundred
    21  ninety-two or is an area receiving funding for a neighborhood  preserva-
    22  tion  project  pursuant to the neighborhood reinvestment corporation act
    23  (42 U.S.C. §§180 et seq.)  as of June first,  nineteen  hundred  eighty-
    24  five, as follows:
    25    a.  except  as otherwise provided herein there shall be full exemption
    26  from taxation during the [period of construction or the period of  three
    27  years  immediately  following  commencement  of  construction, whichever
    28  expires sooner] initial construction period, and  for  twenty-one  years
    29  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    (B)  The benefits of this subparagraph shall not be available in areas
    39  made ineligible for the benefits of this section by a local law  enacted
    40  pursuant  to  paragraph  (i)  of this subdivision [two of this section],
    41  notwithstanding any exceptions to ineligibility contained in such  local
    42  law for certain types of projects.
    43    (C) Notwithstanding the provisions of item (A) or (D) of this subpara-
    44  graph,  in  the city of New York the benefits of this subparagraph shall
    45  not be available in the borough of Manhattan for tax lots  now  existing
    46  or  hereafter created south of or adjacent to either side of one hundred
    47  tenth street.
    48    (D) In addition to being available in the areas described in item  (A)
    49  of  this  subparagraph,  the  benefits  made  available pursuant to this
    50  subparagraph shall be available where:
    51    a. the construction is carried out with the substantial assistance  of
    52  grants,  loans  or  subsidies from any federal, state or local agency or
    53  instrumentality, or
    54    b. the local housing agency has imposed a requirement or has certified
    55  that twenty percent of the units be affordable to families  of  low  and
    56  moderate income.
        S. 3226                             5
     1    (E) Upon the completion of the initial construction period or extended
     2  construction  period,  if needed, the new multiple dwelling must be used
     3  for dwelling purposes.
     4    The following table shall illustrate the computation of the exemption:
     5                           CONSTRUCTION OF CERTAIN
     6                             MULTIPLE DWELLINGS
     7                                                    Exemption
     8  During Initial Construction Period                100%
     9  (maximum three years)
    10  Following completion of [work] the
    11  initial construction period
    12  Year:
    13   1 through 21                                     100%
    14  22                                                 80
    15  23                                                 60
    16  24                                                 40
    17  25                                                 20
    18    [(E)]  (F) A new multiple dwelling that is situated in (1) a neighbor-
    19  hood preservation program area as determined by the department of  hous-
    20  ing  preservation  and  development  as  of June first, nineteen hundred
    21  eighty-five, (2) a neighborhood preservation area as determined  by  the
    22  New  York  city  planning  commission as of June first, nineteen hundred
    23  eighty-five, (3) an  area  that  was  eligible  for  mortgage  insurance
    24  provided  by the rehabilitation mortgage insurance corporation as of May
    25  first, nineteen hundred ninety-two, or (4) an area receiving funding for
    26  a neighborhood preservation project pursuant to the  neighborhood  rein-
    27  vestment  corporation  act (42 U.S.C. §§ 8101 et seq.) as of June first,
    28  nineteen hundred eighty-five, shall not be  eligible  for  the  benefits
    29  available  pursuant  to  this  subparagraph  unless it complies with the
    30  provisions of subdivision seven of this section.
    31    (iv) (A) Unless excluded by local law, in the city of  New  York,  the
    32  benefits  of  this  subparagraph  shall  be  available in the borough of
    33  Manhattan for new multiple dwellings on tax lots now existing  or  here-
    34  after  created  south of or adjacent to either side of one hundred tenth
    35  street that commence construction after  July  first,  nineteen  hundred
    36  ninety-two  and on or before December thirty-first, two thousand fifteen
    37  provided, however, that such a  multiple  dwelling  receives  its  first
    38  temporary or permanent certificate of occupancy covering all residential
    39  areas  on  or  before  December thirty-first, two thousand nineteen, and
    40  solely for purposes of  determining  whether  this  clause  applies  and
    41  notwithstanding any local law to the contrary, "commence" shall mean the
    42  date  upon  which  excavation  and  construction of initial footings and
    43  foundations lawfully begins in good faith or, for  an  eligible  conver-
    44  sion,  the  date  upon  which the actual construction of the conversion,
    45  alteration or improvement of  the  pre-existing  building  or  structure
    46  lawfully begins in good faith, only if:
    47    a.  the construction is carried out with the substantial assistance of
    48  grants, loans or subsidies from any federal, state or  local  agency  or
    49  instrumentality, or
    50    b. the local housing agency has imposed a requirement or has certified
    51  that  twenty  percent of the units are affordable to families of low and
    52  moderate income.
        S. 3226                             6
     1    (B) Such new multiple dwellings, except hotels, shall be  exempt  from
     2  taxation  for  local purposes, other than assessments for local improve-
     3  ments for the tax year or years  immediately  following  taxable  status
     4  dates  occurring  subsequent  to  the  commencement  and  prior  to  the
     5  completion  of  the initial construction period, but not to exceed three
     6  such tax years, and shall continue to be exempt from  such  taxation  in
     7  tax years immediately following the taxable status dates first occurring
     8  after the expiration of the exemption herein conferred during [such] the
     9  initial  construction [so long as used at the completion of construction
    10  for dwelling purposes] period,  and  during  the  extended  construction
    11  period if such period is needed, for a period not to exceed twenty years
    12  in the aggregate, as follows:
    13    a.  except as otherwise provided herein, there shall be full exemption
    14  from taxation during the [period of construction or the period of  three
    15  years  immediately  following  commencement  of  construction, whichever
    16  expires sooner]  initial  construction  period,  and  for  twelve  years
    17  following such period;
    18    b.  followed  by  two  years  of exemption from eighty percent of such
    19  taxation;
    20    c. followed by two years of exemption from sixty percent of such taxa-
    21  tion;
    22    d. followed by two years of exemption from forty percent of such taxa-
    23  tion;
    24    e. followed by two years of exemption  from  twenty  percent  of  such
    25  taxation.
    26    (C) Upon the completion of the initial construction period or extended
    27  construction  period,  if needed, the new multiple dwelling must be used
    28  for dwelling purposes.
    29    The following table shall illustrate the computation of the exemption:
    30                           CONSTRUCTION OF CERTAIN
    31                             MULTIPLE DWELLINGS
    32  During [construction] Initial Construction
    33  Period (maximum three years)                           Exemption 100%
    34  Following completion of [work year] the initial
    35  construction period:
    36  Year
    37                    1 through 12                         100%
    38                      13-14                               80%
    39                      15-16                               60%
    40                      17-18                               40%
    41                      19-20                               20%
    42    § 3. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
    43  erty tax law, as amended by chapter 995 of the laws of 1981, is  amended
    44  to read as follows:
    45    (g)  [For]  Notwithstanding  anything to the contrary contained in any
    46  other state or local law, for purposes  of  this  section,  construction
    47  shall  be deemed "commenced" [when excavation or alteration has begun in
    48  good faith on the basis of approved construction plans]  upon  the  date
    49  that,  pursuant to any permit approved by a department of buildings: (i)
    50  a new metal or concrete structure that  shall  perform  a  load  bearing
    51  function  is  installed as part of a foundation; (ii) at least one fully
    52  driven pile or caisson is installed; or (iii) the  actual  construction,
    53  alteration,  or  improvement  of  a  pre-existing  building or structure
        S. 3226                             7
     1  begins in a project that includes new residential construction  and  the
     2  concurrent  conversion,  alteration  or  improvement  of  a pre-existing
     3  building or structure.  Provided, however, that with respect to subpara-
     4  graphs  (i),  (ii) and (iii) of this paragraph, the construction of such
     5  multiple dwelling is completed without undue delay.
     6    § 4. The opening paragraph and subparagraph (iv)  of  paragraph  a  of
     7  subdivision 3 of section 421-a of the real property tax law, the opening
     8  paragraph as amended by section 63-g of part A of chapter 20 of the laws
     9  of  2015  and subparagraph (iv) as amended by chapter 703 of the laws of
    10  1976 and such section as renumbered by chapter 110 of the laws of  1977,
    11  are amended to read as follows:
    12    [Application  forms  for  exemption  under this section shall be filed
    13  with the assessors between February first and March fifteenth and, based
    14  on the certification of the local housing agency as herein provided, the
    15  assessors shall certify to the collecting officer the amount of taxes to
    16  be abated.] If there be in a city of one million population  or  more  a
    17  department  of  housing  preservation and development, the term "housing
    18  agency" shall mean only such  department  of  housing  preservation  and
    19  development.  [No  such  application  shall be accepted by the assessors
    20  unless accompanied by a certificate of the local housing agency certify-
    21  ing the applicant's eligibility pursuant to subdivisions two and four of
    22  this section.] No  [such]  certification  of  eligibility  for  benefits
    23  pursuant  to  this  section  shall be issued by the local housing agency
    24  until such agency determines the initial adjusted  monthly  rent  to  be
    25  paid  by  tenants residing in rental dwelling units contained within the
    26  multiple dwelling and the comparative adjusted monthly rent  that  would
    27  have  to  be paid by such tenants if no tax exemption were applicable as
    28  provided by this section.   The initial adjusted monthly  rent  will  be
    29  certified  by the local housing agency as the first rent for the subject
    30  dwelling units. A copy of such certification with respect to such  units
    31  shall be attached by the applicant to the first effective lease or occu-
    32  pancy  agreement.  The  initial  adjusted monthly rent shall reflect the
    33  full tax exemption benefits as approved by the agency.
    34    (iv) The adjusted monthly rent per room per month shall be  multiplied
    35  by  the  room  count of each rental dwelling unit to provide the initial
    36  adjusted monthly rent for such  dwelling  unit.  The  agency  may  allow
    37  adjustments  in  the  initial  adjusted  monthly rent for any particular
    38  dwelling units provided that the total of the initial  adjusted  monthly
    39  rents  for all of the rental dwelling units in a multiple dwelling shall
    40  not exceed the total expenses of such multiple dwelling.
    41    The agency shall determine the estimated comparative adjusted  monthly
    42  rent  that  would have to be paid if no tax exemption were applicable as
    43  provided by this section by adding to the adjusted monthly rent for each
    44  dwelling unit as hereinabove computed an amount equal to (a) the differ-
    45  ence between the projected real property taxes which would be levied  on
    46  the  multiple  dwelling and the land on which it is situated at the time
    47  of estimated initial occupancy if no tax abatement  were  applicable  as
    48  provided  by this section and the projected real property taxes hereina-
    49  bove utilized in connection with the computation of total expenses;  (b)
    50  divided  by  the room count of the building as per this section; and (c)
    51  multiplied by the applicants approved room count of each  such  dwelling
    52  unit.
    53    The local housing agency may promulgate rules and regulations to carry
    54  out the provisions of this section, not inconsistent with the provisions
    55  hereof,  [and  may require a reasonable filing fee in an amount provided
    56  by such rules and regulations] including, but not limited to, rules  and
        S. 3226                             8
     1  regulations  relating to the filing fee authorized pursuant to paragraph
     2  b of subdivision four of this section.
     3    § 5. Paragraph b of subdivision 4 of section 421-a of the real proper-
     4  ty  tax  law, as added by chapter 744 of the laws of 2004, is amended to
     5  read as follows:
     6    b. The local housing agency [may] shall require a filing  fee  not  to
     7  exceed  the  greater  of  (i)  four-tenths  of  one percent of the total
     8  project cost, or (ii) if the building will be owned as a cooperative  or
     9  condominium,  four-tenths  of  one  percent of the total project cost or
    10  four-tenths of one percent of the total project sell-out price stated in
    11  the last amendment to the offering  plan  accepted  for  filing  by  the
    12  attorney  general  of  the  state,  at the option of the applicant. Such
    13  total project cost or total project sell-out price shall  be  determined
    14  pursuant to rules promulgated by the local housing agency. Notwithstand-
    15  ing  the foregoing, the local housing agency may promulgate rules impos-
    16  ing an additional fee  if  an  application,  or  any  part  thereof,  or
    17  submission  in connection therewith, is defective and such defect delays
    18  the processing of such application or causes the local housing agency to
    19  expend additional resources in the processing of such application.
    20    § 6. Subparagraph (i) of paragraph (a) of  subdivision  6  of  section
    21  421-a  of the real property tax law, as added by chapter 110 of the laws
    22  of 2005, is amended to read as follows:
    23    (i) "Covered project." (A) A new building located  within  the  Green-
    24  point  -  Williamsburg waterfront exclusion area, (B) two or more build-
    25  ings which are part of one contiguous development entirely located with-
    26  in the Greenpoint - Williamsburg waterfront exclusion area, (C)  two  or
    27  more  buildings  which  are located within the Greenpoint - Williamsburg
    28  waterfront exclusion area and are part of a  single  development  parcel
    29  specifically  identified  in section [62-831] 62-931 of the local zoning
    30  resolution, or (D) where so authorized in writing by the  local  housing
    31  agency,  one or more buildings located within the Greenpoint - Williams-
    32  burg waterfront exclusion area and one or more buildings located outside
    33  the Greenpoint -  Williamsburg  waterfront  exclusion  area  but  within
    34  Community District Number One in the borough of Brooklyn. The cumulative
    35  number of affordable units located outside the Greenpoint - Williamsburg
    36  waterfront  exclusion  area  in all covered projects described in clause
    37  (D) of this subparagraph  shall  not  exceed  two  hundred.  A  building
    38  located  outside the Greenpoint - Williamsburg waterfront exclusion area
    39  which is part of a covered project  described  in  clause  (D)  of  this
    40  subparagraph  shall  not  contain  any  affordable units with respect to
    41  which an application pending before a governmental entity on [the effec-
    42  tive date of this subdivision] June twenty-first, two thousand five or a
    43  written agreement in effect on [the effective date of this  subdivision]
    44  June  twenty-first,  two  thousand  five provided for the development of
    45  such affordable units.
    46    § 7. Subdivision (c) of section 11-245 of the administrative  code  of
    47  the  city  of New York, as amended by local law number 42 of the city of
    48  New York for the year 2003, is amended to read as follows:
    49    (c) No benefits under section four hundred twenty-one-a  of  the  real
    50  property tax law shall be conferred for any construction commenced on or
    51  after  November twenty-ninth, nineteen hundred eighty-five of any multi-
    52  ple dwelling, or portion thereof, which is located within  any  district
    53  in the county of New York where a maximum base floor area ratio, as that
    54  term  is  defined  in  the  zoning resolution, of fifteen or greater was
    55  permitted as of right by provisions of  such  resolution  in  effect  on
    56  April  fourteenth,  nineteen hundred eighty-two; provided, however, that
        S. 3226                             9
     1  this limitation on benefits shall not apply  to  any  such  construction
     2  commenced  on  or after October first, nineteen hundred ninety-three and
     3  before December [thirty-first] twenty-eighth, two thousand [seven] twen-
     4  ty-one.
     5    §  8.  Subdivision 8 of section 421-a of the real property tax law, as
     6  amended by section 63-m of part A of chapter 20 of the laws of 2015,  is
     7  amended to read as follows:
     8    8. (a) As used in this subdivision, the following terms shall have the
     9  following meanings:
    10    (i)  "Applicant"  means  an  applicant  for  benefits pursuant to this
    11  section, any successor to such applicant, or any  employer  of  building
    12  service  employees  for such applicant, including, but not limited to, a
    13  property management company or contractor.
    14    (ii) "Building service employee" means any  person  who  is  regularly
    15  employed  at a building who performs work in connection with the care or
    16  maintenance of such building. "Building service employee" includes,  but
    17  is  not  limited to, watchman, guard, doorman, building cleaner, porter,
    18  handyman, janitor, gardener, groundskeeper, elevator operator and start-
    19  er, and window cleaner, but shall not include persons  regularly  sched-
    20  uled to work fewer than eight hours per week in the building.
    21    (iii)  "Construction  employee" means a laborer, worker or mechanic in
    22  the employ of the contractor, subcontractor or  other  person  doing  or
    23  contracting  to  do  the whole or a portion of the construction of a new
    24  multiple dwelling.
    25    (iv) "Fiscal officer" means the comptroller or other analogous officer
    26  in a city having a population of one million or more.
    27    (b) All building service employees employed  by  the  applicant  in  a
    28  building  whose  construction  commenced  on  or  after December twenty-
    29  eighth, two thousand seven shall receive the applicable prevailing  wage
    30  for  the duration of benefits pursuant to this section.  Notwithstanding
    31  any general, special or local law, or judicial decision to the contrary,
    32  for the purposes of this section such construction which may involve the
    33  employment of laborers, workers or  mechanics,  except  as  provided  in
    34  paragraph  (d)  of this subdivision, shall be deemed public work for the
    35  purposes of article eight of the labor law and all contracts and subcon-
    36  tracts which may involve the employment of laborers, workers or  mechan-
    37  ics shall be enforceable under article eight of the labor law.
    38    (c)  The fiscal officer shall have the power to enforce the provisions
    39  of this subdivision. In enforcing such provisions,  the  fiscal  officer
    40  shall have the power:
    41    (i)  to  investigate or cause an investigation to be made to determine
    42  the prevailing wages for building  service  employees  and  construction
    43  employees;  in making such investigation, the fiscal officer may utilize
    44  wage and fringe benefit data from various sources,  including,  but  not
    45  limited  to,  data and determinations of federal, state or other govern-
    46  mental agencies;
    47    (ii) to institute and conduct inspections at the site of the  work  or
    48  elsewhere;
    49    (iii)  to  examine  the books, documents and records pertaining to the
    50  wages paid to, and the hours of  work  performed  by,  building  service
    51  employees;
    52    (iv)  to  hold hearings and, in connection therewith, to issue subpoe-
    53  nas, administer oaths  and  examine  witnesses;  the  enforcement  of  a
    54  subpoena  issued  under this subdivision shall be regulated by the civil
    55  practice law and rules;
        S. 3226                            10
     1    (v) to make a classification by craft, trade or other generally recog-
     2  nized occupational  category  of  the  building  service  employees  and
     3  construction  employees  and  to  determine  whether  such work has been
     4  performed by the building service employees and  construction  employees
     5  in such classification;
     6    (vi) to require the applicant to file with the fiscal officer a record
     7  of  the  wages  actually  paid by such applicant to the building service
     8  employees or construction employees and of their hours of work;
     9    (vii) to delegate any of the foregoing powers to his or her deputy  or
    10  other authorized representative; and
    11    (viii)  to  promulgate rules as he or she shall consider necessary for
    12  the  proper  execution  of  the  duties,  responsibilities  and   powers
    13  conferred upon him or her by the provisions of this paragraph.
    14    (d)  If  the  fiscal  officer  finds  that the applicant has failed to
    15  comply with the provisions of this subdivision, he or she shall  present
    16  evidence of such noncompliance to the local housing agency.
    17    (e)  [Paragraph] For building service employees, paragraph (b) of this
    18  subdivision shall not be applicable to:
    19    (i) projects containing less than fifty dwelling units; or
    20    (ii) buildings where  the  local  housing  agency  certifies  that  at
    21  initial  occupancy  at  least  fifty  percent  of the dwelling units are
    22  affordable to individuals or families with a gross household  income  at
    23  or  below  one hundred twenty-five percent of the area median income and
    24  that any such units which  are  located  in  rental  buildings  will  be
    25  subject  to  restrictions to insure that they will remain affordable for
    26  the entire period during which they receive benefits under this section.
    27    (f) For construction employees,  paragraph  (b)  of  this  subdivision
    28  shall not be applicable to:
    29    (i) projects containing less than eighty dwelling units; or
    30    (ii)  buildings  where  the  local  housing  agency  certifies that at
    31  initial occupancy at least fifty  percent  of  the  dwelling  units  are
    32  affordable  to  individuals or families with a gross household income at
    33  or below one hundred twenty-five percent of the area median  income  and
    34  that  any  such  units  which  are  located  in rental buildings will be
    35  subject to restrictions to insure that they will remain  affordable  for
    36  the entire period during which they receive benefits under this section.
    37    (g) The local housing agency shall prescribe appropriate sanctions for
    38  failure to comply with the provisions of this subdivision.
    39    [(g)]  (h)  Solely  for purposes of paragraph (b) of this subdivision,
    40  construction shall be deemed  to  have  commenced  [when  excavation  or
    41  alteration has begun in good faith on the basis of approved construction
    42  plans]  upon the date that, pursuant to any permit approved by a depart-
    43  ment of buildings, (i) a new metal  or  concrete  structure  that  shall
    44  perform  a  load  bearing function is installed as part of a foundation,
    45  (ii) at least one fully driven pile or caisson is  installed,  or  (iii)
    46  the  actual  construction,  alteration, or improvement of a pre-existing
    47  building or structure begins in a project that includes new  residential
    48  construction and the concurrent conversion, alteration or improvement of
    49  a  pre-existing  building  or  structure.   Provided, however, that with
    50  respect to subparagraphs (i), (ii) and  (iii)  of  this  paragraph,  the
    51  construction of such multiple dwelling is completed without undue delay.
    52    [(h)]  (i)  The  eligibility  criteria  for benefits contained in this
    53  subdivision shall be in addition to those contained in any other law  or
    54  regulation.
    55    § 9. The New York city charter is amended by adding a new section 1807
    56  to read as follows:
        S. 3226                            11
     1    § 1807. Additional floor area.  Any program that allows for additional
     2  floor  area  in  exchange  for  the creation of affordable housing shall
     3  require that thirty percent of any additional floor  area  generated  by
     4  the program be used to provide affordable housing.
     5    §  10.  The  real  property tax law is amended by adding a new section
     6  421-p to read as follows:
     7    § 421-p. Exemption of certain private homes from local taxation.    1.
     8  For purposes of this section, the following terms shall have the follow-
     9  ing meanings:
    10    (a)  "Commence  construction" shall mean that the agency or department
    11  of the city having jurisdiction has issued a permit for construction  of
    12  a  private home and such work has begun in good faith in accordance with
    13  such permit.
    14    (b) "Complete construction" shall mean that the agency  or  department
    15  of  the  city  having  jurisdiction  has issued a temporary or permanent
    16  certificate of occupancy for all residential areas of the private home.
    17    (c) "Eligible project" shall mean a newly  constructed  private  home,
    18  including  both land and improvements, to be occupied as a residence for
    19  the first time, which commences construction on or after July first, two
    20  thousand eighteen and on or before December thirty-first,  two  thousand
    21  twenty-two  and  completes  construction  no later than December thirty-
    22  first, two thousand twenty-four, and  which  is  designed  and  occupied
    23  exclusively for residential purposes.
    24    (d)  "Exemption commencement date" shall mean the first taxable status
    25  date after the later to occur of the completion of such construction  or
    26  the sale to the initial purchaser or, in the case of a private home in a
    27  condominium  form  of ownership, the first taxable status date after the
    28  later to occur of the completion of such construction or the sale to the
    29  first initial purchaser of a condominium dwelling unit in  such  private
    30  home.
    31    (e)  "Initial  purchaser"  shall  mean  the first purchaser of a newly
    32  constructed private home or, in the case of a private home in  a  condo-
    33  minium  form  of ownership, the first purchaser of each dwelling unit in
    34  such newly constructed private home.
    35    (f) "Local housing agency" shall mean an "agency" as defined  pursuant
    36  to section six hundred ninety-two of the general municipal law.
    37    (g)  "Purchase  price" shall mean the actual purchase price to be paid
    38  for the private home by the initial purchaser.
    39    (h) "Maximum purchase price" shall mean  the  purchase  price  of  the
    40  private  home  which,  if  exceeded,  will  make any exemption hereunder
    41  unavailable.
    42    (i) "Maximum exemption amount" shall mean the portion of the  purchase
    43  price to be exempted from taxation of: (i) six hundred seventy-one thou-
    44  sand dollars in the case of a private home containing one dwelling unit,
    45  (ii) seven hundred fifty-five thousand five hundred forty dollars in the
    46  case of a private home containing two dwelling units, (iii) nine hundred
    47  fourteen  thousand  seven hundred fifty dollars in the case of a private
    48  home containing three dwelling units, and  (iv)  four  hundred  thousand
    49  dollars  for each individual condominium unit in the case of condominium
    50  form of ownership  in  a  private  home.  The  maximum  purchase  prices
    51  provided  in  subparagraphs  (i), (ii), (iii) and (iv) of this paragraph
    52  shall be the limit for the application of any  exemption  from  taxation
    53  under  this  section.  No exemption shall be available where the maximum
    54  purchase price exemption is in excess of  nine  hundred  fifty  thousand
    55  dollars  for  a  one,  two, or three family private home or four hundred
    56  thousand dollars for an individual condominium unit.
        S. 3226                            12
     1    (j) "Multiple dwelling" shall mean  a  multiple  dwelling  within  the
     2  meaning of section four of the multiple dwelling law.
     3    (k)  "Private  home"  shall mean an owner occupied private or multiple
     4  dwelling containing not more than three dwelling units, as indicated  on
     5  the certificate of occupancy for such structure.
     6    2.  (a)  Within  a city having a population of one million or more, an
     7  eligible project shall be exempt from all  local  and  municipal  taxes,
     8  other  than  assessments  for local improvements, during the tax year or
     9  years next following the exemption commencement date  as  follows:  with
    10  respect  to  private homes containing less than four dwelling units, two
    11  years of exemption  from  all  such  taxes;  followed  by  one  year  of
    12  exemption  from seventy-five percent of such taxes; followed by one year
    13  of exemption from sixty-two and one-half percent of such taxes; followed
    14  by one year of exemption from fifty percent of such taxes;  followed  by
    15  one  year  of  exemption  from thirty-seven and one-half percent of such
    16  taxes; followed by one year of exemption  from  twenty-five  percent  of
    17  such  taxes;  and followed by one year of exemption from twelve and one-
    18  half percent of such taxes.
    19    (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
    20  sion,  exemption from local and municipal taxes under this section shall
    21  not be available to the tax lot (land and  improvements)  upon  which  a
    22  private  home  is  constructed  if any portion of such tax lot (land and
    23  improvements): (i) is exempt from local and municipal  taxes  under  any
    24  other  law;  or  (ii)  contains  a private home that exceeds the maximum
    25  purchase price or an individual condominium unit that exceeds a purchase
    26  price of four hundred thousand dollars.
    27    (c) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
    28  sion, the tax lot (land and improvements) upon which the private home is
    29  constructed  shall  at all times be subject to local and municipal taxes
    30  in an amount not less than the amount of local and municipal taxes  that
    31  would  be  payable thereon based upon the assessed valuation of the land
    32  appearing on the assessment roll in the first year after  completion  of
    33  construction.
    34    3. (a) Based on the certification of the local housing agency pursuant
    35  to  this  section  certifying eligibility for exemption pursuant to this
    36  section, the department of finance of the city of New York shall  imple-
    37  ment the amount of exemption from local and municipal taxes.
    38    (b)  The  local housing agency may promulgate rules and regulations to
    39  carry out the provisions of this section and may require  payment  of  a
    40  non-refundable  filing  fee  in  the  amount  of two hundred dollars per
    41  dwelling unit for each application for tax exemption  pursuant  to  this
    42  section.
    43    (c)  Upon  a  finding by the local housing agency or by another agency
    44  designated by such local housing agency that a private home is not being
    45  used for residential purposes, is the subject  of  a  violation  for  an
    46  illegal  occupancy, or not owner occupied, exemption from taxation under
    47  this  section  shall  be  revoked  and  shall  terminate  prospectively;
    48  provided,  however,  that in the case of an illegal occupancy, the owner
    49  shall repay all taxes, with interest, from which such private  home  was
    50  exempted and such amount, if unpaid, shall become a tax lien against the
    51  property.
    52    § 11. This act shall take effect immediately.