S T A T E O F N E W Y O R K ________________________________________________________________________ 8369 I N S E N A T E June 25, 2010 ___________ Introduced by COMMITTEE ON RULES -- 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 tax exemption for new multiple dwellings THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of 2 section 421-a of the real property tax law, as amended by chapter 288 of 3 the laws of 1985, is amended to read as follows: 4 (i) Within a city having a population of one million or more, new 5 multiple dwellings, except hotels, shall be exempt from taxation for 6 local purposes, other than assessments for local improvements, for the 7 tax year or years immediately following taxable status dates occurring 8 subsequent to the commencement and prior to the completion of 9 construction, but not to exceed three such tax years, EXCEPT FOR NEW 10 MULTIPLE DWELLINGS THE CONSTRUCTION OF WHICH COMMENCED BETWEEN JANUARY 11 FIRST, TWO THOUSAND SEVEN AND JUNE THIRTIETH, TWO THOUSAND NINE WHICH 12 SHALL BE EXEMPT FROM TAXATION FOR LOCAL PURPOSES, OTHER THAN ASSESSMENTS 13 FOR LOCAL IMPROVEMENTS, FOR THE TAX YEAR OR YEARS IMMEDIATELY FOLLOWING 14 TAXABLE STATUS DATES OCCURRING SUBSEQUENT TO THE COMMENCEMENT AND PRIOR 15 TO THE COMPLETION OF CONSTRUCTION, BUT NOT TO EXCEED SIX SUCH TAX YEARS, 16 and shall continue to be exempt from such taxation in tax years imme- 17 diately following the taxable status date first occurring after the 18 expiration of the exemption herein conferred during construction so long 19 as used at the completion of construction for dwelling purposes for a 20 period not to exceed ten years in the aggregate after the taxable status 21 date immediately following the completion thereof, as follows: 22 (A) except as otherwise provided herein there shall be full exemption 23 from taxation during the period of construction or the period of three 24 years immediately following commencement of construction, whichever 25 expires sooner, EXCEPT FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF 26 WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE THIR- 27 TIETH, TWO THOUSAND NINE WHICH SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM 28 TAXATION DURING THE PERIOD OF CONSTRUCTION OR THE PERIOD OF SIX YEARS EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD17886-01-0 S. 8369 2 1 IMMEDIATELY FOLLOWING COMMENCEMENT OF CONSTRUCTION, WHICHEVER EXPIRES 2 SOONER, and for two years following such period; 3 (B) followed by two years of exemption from eighty per cent of such 4 taxation; 5 (C) followed by two years of exemption from sixty per cent of such 6 taxation; 7 (D) followed by two years of exemption from forty per cent of such 8 taxation; 9 (E) followed by two years of exemption from twenty per cent of such 10 taxation; 11 The following table shall illustrate the computation of the tax 12 exemption: 13 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS 14 Exemption 15 During Construction (maximum three years, 100% 16 EXCEPT FOR CONSTRUCTION COMMENCEMENT 17 BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN 18 AND JUNE THIRTIETH, TWO THOUSAND NINE WHICH 19 HAS A MAXIMUM OF SIX YEARS) 20 Following completion of work 21 Year: 22 1 100% 23 2 100 24 3 80 25 4 80 26 5 60 27 6 60 28 7 40 29 8 40 30 9 20 31 10 20 32 S 2. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2 33 of section 421-a of the real property tax law, as amended by chapter 288 34 of the laws of 1985, is amended to read as follows: 35 (A) Within a city having a population of one million or more the local 36 housing agency may adopt rules and regulations providing that except in 37 areas excluded by local law new multiple dwellings, except hotels, shall 38 be exempt from taxation for local purposes, other than assessments for 39 local improvements, for the tax year or years immediately following 40 taxable status dates occurring subsequent to the commencement and prior 41 to the completion of construction, but not to exceed three such tax 42 years, EXCEPT FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF WHICH 43 COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE THIRTIETH, 44 TWO THOUSAND NINE WHICH 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 SIX SUCH TAX YEARS, and shall continue 49 to be exempt from such taxation in tax years immediately following the 50 taxable status date first occurring after the expiration of the 51 exemption herein conferred during such construction so long as used at S. 8369 3 1 the completion of construction for dwelling purposes for a period not to 2 exceed fifteen years in the aggregate, 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 THIR- 8 TIETH, TWO THOUSAND NINE WHICH SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM 9 TAXATION DURING THE PERIOD OF CONSTRUCTION OR THE PERIOD OF SIX YEARS 10 IMMEDIATELY FOLLOWING COMMENCEMENT OF CONSTRUCTION, WHICHEVER EXPIRES 11 SOONER, and for eleven years following such period; 12 b. followed by one year of exemption from eighty percent of such taxa- 13 tion; 14 c. followed by one year of exemption from sixty percent of such taxa- 15 tion; 16 d. followed by one year of exemption from forty percent of such taxa- 17 tion; 18 e. followed by one year of exemption from twenty percent of such taxa- 19 tion. 20 S 3. Subclause b of clause (C) of subparagraph (ii) of paragraph (a) 21 of subdivision 2 of section 421-a of the real property tax law, as 22 amended by chapter 288 of the laws of 1985, is amended to read as 23 follows: 24 b. the local housing agency has imposed a requirement or has certified 25 that twenty percent of the units be affordable to families of low and 26 moderate income. 27 The following table shall illustrate the computation of the exemption: 28 CONSTRUCTION OF CERTAIN 29 MULTIPLE DWELLINGS 30 Exemption 31 During Construction (maximum three years, 100% 32 EXCEPT FOR CONSTRUCTION COMMENCEMENT 33 BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN 34 AND JUNE THIRTIETH, TWO THOUSAND NINE WHICH 35 HAS A MAXIMUM OF SIX YEARS) 36 Following completion of work 37 Year: 38 1 through 11 100% 39 12 80 40 13 60 41 14 40 42 15 20 43 S 4. 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 chapter 45 702 of the laws of 1992, is amended to read as follows: 46 (A) Within a city having a population of one million or more the local 47 housing agency may adopt rules and regulations providing that new multi- 48 ple dwellings, except hotels, shall be exempt from taxation for local 49 purposes, other than assessments for local improvements, for the tax 50 year or years immediately following taxable status dates occurring 51 subsequent to the commencement and prior to the completion of 52 construction, but not to exceed three such tax years, EXCEPT FOR NEW 53 MULTIPLE DWELLINGS THE CONSTRUCTION OF WHICH COMMENCED BETWEEN JANUARY S. 8369 4 1 FIRST, TWO THOUSAND SEVEN AND JUNE THIRTIETH, TWO THOUSAND NINE WHICH 2 SHALL BE EXEMPT FROM TAXATION FOR LOCAL PURPOSES, OTHER THAN ASSESSMENTS 3 FOR LOCAL IMPROVEMENTS, FOR THE TAX YEAR OR YEARS IMMEDIATELY FOLLOWING 4 TAXABLE STATUS DATES OCCURRING SUBSEQUENT TO THE COMMENCEMENT AND PRIOR 5 TO THE COMPLETION OF CONSTRUCTION, BUT NOT TO EXCEED SIX SUCH TAX YEARS, 6 and shall continue to be exempt from such taxation in tax years imme- 7 diately following the taxable status date first occurring after the 8 expiration of the exemption herein conferred during such construction so 9 long as used at the completion of construction for dwelling purposes for 10 a period not to exceed twenty-five years in the aggregate, provided that 11 the area in which the project is situated is a neighborhood preservation 12 program area as determined by the local housing agency as of June first, 13 nineteen hundred eighty-five, or is a neighborhood preservation area as 14 determined by the New York city planning commission as of June first, 15 nineteen hundred eighty-five, or is an area that was eligible for mort- 16 gage insurance provided by the rehabilitation mortgage insurance corpo- 17 ration as of May first, nineteen hundred ninety-two or is an area 18 receiving funding for a neighborhood preservation project pursuant to 19 the neighborhood reinvestment corporation act (42 U.S.C. SS180 et seq.) 20 as of June first, nineteen hundred eighty-five, 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 THIR- 26 TIETH, TWO THOUSAND NINE WHICH SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM 27 TAXATION DURING THE PERIOD OF CONSTRUCTION OR THE PERIOD OF SIX YEARS 28 IMMEDIATELY FOLLOWING COMMENCEMENT OF CONSTRUCTION, WHICHEVER EXPIRES 29 SOONER, and for twenty-one 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 5. Subclause b of clause (D) of subparagraph (iii) of paragraph (a) 39 of subdivision 2 of section 421-a of the real property tax law, as 40 amended by chapter 288 of the laws of 1985, is amended to read as 41 follows: 42 b. the local housing agency has imposed a requirement or has certified 43 that twenty percent of the units be affordable to families of low and 44 moderate income. 45 The following table shall illustrate the computation of the exemption: 46 CONSTRUCTION OF CERTAIN 47 MULTIPLE DWELLINGS 48 Exemption 49 During Construction (maximum three years, 100% 50 EXCEPT FOR CONSTRUCTION 51 COMMENCEMENT BETWEEN JANUARY FIRST, TWO 52 THOUSAND SEVEN AND JUNE THIRTIETH, 53 TWO THOUSAND NINE WHICH HAS A MAXIMUM 54 OF SIX YEARS) S. 8369 5 1 Following completion of work 2 Year: 3 1 through 21 100% 4 22 80 5 23 60 6 24 40 7 25 20 8 S 6. Item (B) of subparagraph (iv) of paragraph (a) of subdivision 2 9 of section 421-a of the real property tax law, as added by chapter 832 10 of the laws of 1992, is amended to read as follows: 11 (B) Such new multiple dwellings, except hotels, shall be exempt from 12 taxation for local purposes, other than assessments for local improve- 13 ments for the tax year or years immediately following taxable status 14 dates occurring subsequent to the commencement and prior to the 15 completion of construction, but not to exceed three such tax years, 16 EXCEPT FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF WHICH COMMENCED 17 BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE THIRTIETH, TWO THOU- 18 SAND NINE WHICH SHALL BE EXEMPT FROM TAXATION FOR LOCAL PURPOSES, OTHER 19 THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, FOR THE TAX YEAR OR YEARS IMME- 20 DIATELY FOLLOWING TAXABLE STATUS DATES OCCURRING SUBSEQUENT TO THE 21 COMMENCEMENT AND PRIOR TO THE COMPLETION OF CONSTRUCTION, BUT NOT TO 22 EXCEED SIX SUCH TAX YEARS, and shall continue to be exempt from such 23 taxation in tax years immediately following the taxable status dates 24 first occurring after the expiration of the exemption herein conferred 25 during such construction so long as used at the completion of 26 construction for dwelling purposes for a period not to exceed twenty 27 years in the aggregate, as follows: 28 a. except as otherwise provided herein, there shall be full exemption 29 from taxation during the period of construction or the period of three 30 years immediately following commencement of construction, whichever 31 expires sooner, EXCEPT FOR NEW MULTIPLE DWELLINGS THE CONSTRUCTION OF 32 WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE THIR- 33 TIETH, TWO THOUSAND NINE WHICH SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM 34 TAXATION DURING THE PERIOD OF CONSTRUCTION OR THE PERIOD OF SIX YEARS 35 IMMEDIATELY FOLLOWING COMMENCEMENT OF CONSTRUCTION, WHICHEVER EXPIRES 36 SOONER, and for twelve years following such period; 37 b. followed by two years of exemption from eighty percent of such 38 taxation; 39 c. followed by two years of exemption from sixty percent of such taxa- 40 tion; 41 d. followed by two years of exemption from forty percent of such taxa- 42 tion; 43 e. followed by two years of exemption from twenty percent of such 44 taxation. 45 The following table shall illustrate the computation of the exemption: 46 CONSTRUCTION OF CERTAIN 47 MULTIPLE DWELLINGS 48 During construction (maximum three Exemption 100% 49 years, EXCEPT FOR CONSTRUCTION 50 COMMENCEMENT BETWEEN JANUARY FIRST, 51 TWO THOUSAND SEVEN AND JUNE THIRTIETH, 52 TWO THOUSAND NINE WHICH HAS A MAXIMUM S. 8369 6 1 OF SIX YEARS) 2 Following completion of work year: 3 1 through 12 100% 4 13-14 80% 5 15-16 60% 6 17-18 40% 7 19-20 20% 8 S 7. The opening paragraph of item (A) of subparagraph (iv) of para- 9 graph (a) of subdivision 2 of section 421-a of the real property tax 10 law, as amended by chapter 618 of the laws of 2007, is amended to read 11 as follows: 12 Unless excluded by local law, in the city of New York, the benefits of 13 this subparagraph shall be available in the borough of Manhattan for new 14 multiple dwellings on tax lots now existing or hereafter created south 15 of or adjacent to either side of one hundred tenth street [which] THAT 16 commence construction after July first, nineteen hundred ninety-two and 17 before December twenty-eighth, two thousand [ten] FOURTEEN only if: 18 S 8. Subparagraph (ii) of paragraph (c) of subdivision 2 of section 19 421-a of the real property tax law, as amended by chapter 618 of the 20 laws of 2007, is amended to read as follows: 21 (ii) construction is commenced after January first, nineteen hundred 22 seventy-five and before December twenty-eighth, two thousand [ten] FOUR- 23 TEEN provided, however, that such commencement period shall not apply to 24 multiple dwellings eligible for benefits under subparagraph (iv) of 25 paragraph (a) of this subdivision; 26 S 9. Paragraph (g) of subdivision 2 of section 421-a of the real prop- 27 erty tax law, as amended by chapter 995 of the laws of 1981, is amended 28 to read as follows: 29 (g) [For] NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN ANY 30 OTHER STATE OR LOCAL LAW, FOR purposes of this section, construction 31 shall be deemed "commenced" [when excavation or alteration has begun in 32 good faith on the basis of approved construction plans] UPON THE DATE 33 THAT, PURSUANT TO ANY PERMIT APPROVED BY A DEPARTMENT OF BUILDINGS, (I) 34 A NEW METAL OR CONCRETE STRUCTURE THAT SHALL PERFORM A LOAD BEARING 35 FUNCTION IS INSTALLED AS PART OF A FOUNDATION, (II) AT LEAST ONE FULLY 36 DRIVEN PILE OR CAISSON IS INSTALLED, OR (III) THE ACTUAL CONSTRUCTION, 37 ALTERATION OR IMPROVEMENT OF A PRE-EXISTING BUILDING OR STRUCTURE BEGINS 38 IN A PROJECT THAT INCLUDES NEW RESIDENTIAL CONSTRUCTION AND THE CONCUR- 39 RENT CONVERSION, ALTERATION OR IMPROVEMENT OF A PRE-EXISTING BUILDING OR 40 STRUCTURE; PROVIDED, HOWEVER, THAT WITH RESPECT TO SUBPARAGRAPHS (I), 41 (II) AND (III) OF THIS PARAGRAPH, THE CONSTRUCTION OF SUCH MULTIPLE 42 DWELLING IS COMPLETED WITHOUT UNDUE DELAY. 43 S 10. The opening paragraph and paragraph (iv) of subdivision 3 of 44 section 421-a of the real property tax law, the opening paragraph as 45 amended by chapter 655 of the laws of 1978 and paragraph (iv) as amended 46 by chapter 703 of the laws of 1976, are amended to read as follows: 47 [Application forms for exemption under this section shall be filed 48 with the assessors between February first and March fifteenth and, based 49 on the certification of the local housing agency as herein provided, the 50 assessors shall certify to the collecting officer the amount of taxes to 51 be abated.] If there be in a city of one million population or more a 52 department of housing preservation and development, the term "housing 53 agency" shall mean only such department of housing preservation and 54 development. [No such application shall be accepted by the assessors 55 unless accompanied by a certificate of the local housing agency certify- S. 8369 7 1 ing the applicant's eligibility pursuant to subdivisions two and four of 2 this section.] No [such] certification of eligibility FOR BENEFITS 3 PURSUANT TO THIS SECTION shall be issued by the local housing agency 4 until such agency determines the initial adjusted monthly rent to be 5 paid by tenants residing in rental dwelling units contained within the 6 multiple dwelling and the comparative adjusted monthly rent that would 7 have to be paid by such tenants if no tax exemption were applicable as 8 provided by this section. The initial adjusted monthly rent will be 9 certified by the local housing agency as the first rent for the subject 10 dwelling units. A copy of such certification with respect to such units 11 shall be attached by the applicant to the first effective lease or occu- 12 pancy agreement. The initial adjusted monthly rent shall reflect the 13 full tax exemption benefits as approved by the agency. 14 (iv) The adjusted monthly rent per room per month shall be multiplied 15 by the room count of each rental dwelling unit to provide the initial 16 adjusted monthly rent for such dwelling unit. The agency may allow 17 adjustments in the initial adjusted monthly rent for any particular 18 dwelling units provided that the total of the initial adjusted monthly 19 rents for all of the rental dwelling units in a multiple dwelling shall 20 not exceed the total expenses of such multiple dwelling. 21 The agency shall determine the estimated comparative adjusted monthly 22 rent that would have to be paid if no tax exemption were applicable as 23 provided by this section by adding to the adjusted monthly rent for each 24 dwelling unit as hereinabove computed an amount equal to (a) the differ- 25 ence between the projected real property taxes which would be levied on 26 the multiple dwelling and the land on which it is situated at the time 27 OF estimated initial occupancy if no tax abatement were applicable as 28 provided by this section and the projected real property taxes hereina- 29 bove utilized in connection with the computation of total expenses; (b) 30 divided by the room count of the building as per this section; and (c) 31 multiplied by the applicants approved room count of each such dwelling 32 unit. 33 The local housing agency may promulgate rules and regulations to carry 34 out the provisions of this section, not inconsistent with the provisions 35 hereof, [and may require a reasonable filing fee in an amount provided 36 by such rules and regulations] INCLUDING, BUT NOT LIMITED TO, RULES AND 37 REGULATIONS RELATING TO THE FILING FEE AUTHORIZED PURSUANT TO PARAGRAPH 38 B OF SUBDIVISION FOUR OF THIS SECTION. 39 S 11. Paragraph b of subdivision 4 of section 421-a of the real prop- 40 erty tax law, as added by chapter 744 of the laws of 2004, is amended to 41 read as follows: 42 b. The local housing agency [may] SHALL require a filing fee not to 43 exceed the greater of (i) four-tenths of one percent of the total 44 project cost, or (ii) if the building will be owned as a cooperative or 45 condominium, four-tenths of one percent of the total project cost or 46 four-tenths of one percent of the total project sell-out price stated in 47 the last amendment to the offering plan accepted for filing by the 48 attorney general of the state, at the option of the applicant. Such 49 total project cost or total project sell-out price shall be determined 50 pursuant to rules promulgated by the local housing agency. Notwithstand- 51 ing the foregoing, the local housing agency may promulgate rules impos- 52 ing an additional fee if an application, or any part thereof, or 53 submission in connection therewith, is defective and such defect delays 54 the processing of such application or causes the local housing agency to 55 expend additional resources in the processing of such application. S. 8369 8 1 S 12. Subparagraph (i) of paragraph (a) of subdivision 6 of section 2 421-a of the real property tax law, as added by chapter 110 of the laws 3 of 2005, is amended to read as follows: 4 (i) "Covered project." (A) A new building located within the Green- 5 point - Williamsburg waterfront exclusion area, (B) two or more build- 6 ings which are part of one contiguous development entirely located with- 7 in the Greenpoint - Williamsburg waterfront exclusion area, (C) two or 8 more buildings which are located within the Greenpoint - Williamsburg 9 waterfront exclusion area and are part of a single development parcel 10 specifically identified in section [62-831] 62-931 of the local zoning 11 resolution, or (D) where so authorized in writing by the local housing 12 agency, one or more buildings located within the Greenpoint - Williams- 13 burg waterfront exclusion area and one or more buildings located outside 14 the Greenpoint - Williamsburg waterfront exclusion area but within 15 Community District Number One in the borough of Brooklyn. The cumulative 16 number of affordable units located outside the Greenpoint - Williamsburg 17 waterfront exclusion area in all covered projects described in clause 18 (D) of this subparagraph shall not exceed two hundred. A building 19 located outside the Greenpoint - Williamsburg waterfront exclusion area 20 which is part of a covered project described in clause (D) of this 21 subparagraph shall not contain any affordable units with respect to 22 which an application pending before a governmental entity on the effec- 23 tive date of this subdivision or a written agreement in effect on the 24 effective date of this subdivision provided for the development of such 25 affordable units. 26 S 13. This act shall take effect immediately.