STATE OF NEW YORK ________________________________________________________________________ 3560 2023-2024 Regular Sessions IN SENATE February 1, 2023 ___________ 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. LBD08591-01-3
S. 3560 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. 3560 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. 3560 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. 3560 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. 3560 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. 3560 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. 3560 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. 3560 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-three. 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. 3560 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. 3560 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 twenty and on or before December thirty-first, two thousand 21 twenty-four and completes construction no later than December thirty- 22 first, two thousand twenty-six, 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. 3560 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.