§ 421-C — Exemption of certain new multiple dwellings from local taxation

§ 421-c. Exemption of certain new multiple dwellings from local\ntaxation. 1. The provisions of this section shall apply to each town,\nvillage or city with a population of less than one million which has\ndeclared an emergency in accordance with the provisions of the emergency\ntenant protection act of nineteen seventy-four and which adopts a\nresolution making the provisions of this section applicable to such\ntown, village or city. The owner of housing accommodations in a newly\nconstructed building, which would be subject to the provisions of such\nact except for the fact that the building was completed on or after\nJanuary first, nineteen hundred seventy-four, may file a declaration, in\na form suitable for recording, with the rent guidelines board subjecting\nsuch housing accommodations to the provisions of said act.\n 2. Such new residential buildings shall be exempt from all taxes\nimposed by a municipal corporation including those imposed by a school\ndistrict, other than assessments for local improvements, during\nconstruction and so long as used for residence purposes for a period not\nto exceed ten years in the aggregate after the taxable status date\nimmediately following the completion thereof, consisting of two years of\nfull exemption followed by two years of exemption from eighty percent of\nsuch taxation, followed by two years of exemption from sixty percent of\nsuch taxation, followed by two years of exemption from forty percent of\nsuch taxation, followed by two years of exemption from twenty percent of\nsuch taxation; provided that taxes shall be paid during any such period\nat least in the amount of the taxes paid on such land and any\nimprovements thereon during the tax year preceding the commencement of\nsuch construction and that exemption from taxes shall not be availed of\nconcurrently under any other law. To be eligible for exemption under\nthis section such construction shall take place on vacant, predominantly\nvacant or under-utilized land, or on land improved with a non-conforming\nuse. The initial legal regulated rents to be charged upon initial\noccupancy after construction aided by exemption under this section shall\nbe at least fifteen percent less than the rents prevailing for\ncomparable newly constructed residential units in the same area or any\ncomparable area; and notwithstanding the provisions of the emergency\ntenant protection act of nineteen seventy-four, the rents shall be fully\nsubject to regulation under such act for a period of ten years or for\nthe period such act is in effect in the municipality in which the\nbuilding is situate, whichever is shorter, at the expiration of which\nsuch rent shall be deregulated, unless immediately prior to such\nexpiration such rents would have been regulated by the provisions of any\nlaw other than pursuant to this section, in which event such rents shall\ncontinue subject to such regulation to the same extent and in the same\nmanner as if this section had never applied thereto. Any additional\ntaxes levied against the building as a result of the phase-out of the\nexemption provided by this section may be charged by the owner to the\ntenants on an equitable basis without seeking the approval of the local\nrent guidelines board. For the purposes of this section, construction\nshall be deemed commenced when excavation has begun in good faith on the\nbasis of approved construction plans.\n 3. Application forms for exemption under this section shall be filed\nwith the assessor between February first and March fifteenth, and, based\non the certification of the local rent guidelines board, the assessors\nshall certify to the collecting officer the amount of taxes to be\nabated. No such application shall be accepted by the assessors unless\naccompanied by a certificate of the local rent guidelines board\ncertifying the applicant's eligibility pursuant to subdivision one of\nthis section. Requests to these local rent guidelines boards for\ncertification shall be accompanied by a ten-year projection of the rents\nbased on current levels of operating costs and showing to the\nsatisfaction of such board a relative stability of rents over such\nperiod reflecting to the extent that this is practicable, and averaging\nof the tax benefits of this section in the interests of the tenants.\nThe state division of housing and community renewal may promulgate rules\nand regulations to carry out the provisions of this section, not\ninconsistent with the provisions hereof.\n