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

New York § 421-G

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2: Private Property
• Art. 4: Exemptions

Text

§ 421-g. Exemption from local taxation of certain multiple dwellings.\n1. When used in this section:\n (a) "Aggregate floor area" shall mean the sum of the gross areas of\nthe several floors of a building, measured from the exterior faces of\nexterior walls or from the center lines of walls separating two\nbuildings.\n (b) "Applicant" shall mean any person obligated to pay real property\ntaxes on the property for which an exemption from or abatement of real\nproperty taxes under this section is sought or in the case of exempt\nproperty, the record owner or lessee thereof.\n (c) "Benefit period" shall mean the period of time when a recipient is\neligible to receive benefits pursuant to subdivisions two and three of\nthis section.\n (d) "Certificate of eligibility" shall mean the document issued by the\ndepartment of housing preservation and development certifying a tax lot\nas eligible for benefits pursuant to this section.\n (e) "Commencement of conversion" shall mean the date of issuance by\nthe department of buildings of a building permit for the conversion of a\nnon-residential building to an eligible multiple dwelling, provided\nhowever that such permit is issued on or after July first, nineteen\nhundred ninety-five and no later than June thirtieth, two thousand six.\n (f) "Completion of conversion" shall mean the date of issuance by the\ndepartment of buildings of a temporary or permanent certificate of\noccupancy for the portion of the building for which an application for a\ncertificate of eligibility is filed.\n (g) "Eligible area" shall mean any area of a city having a population\nof one million or more persons in which, subject to the applicable law\ngoverning zoning in such city, tax benefits pursuant to this section for\neligible multiple dwellings are available, provided, however, that in\nthe city of New York, subject to the applicable law governing zoning in\nsuch city, the eligible area in which tax benefits pursuant to this\nsection for eligible multiple dwellings are available shall mean the\narea in the borough of Manhattan bounded by Murray Street on the north\nstarting at the intersection of West Street and Murray Street; running\neasterly along the center line of Murray Street; connecting through City\nHall Park with the center line of Frankfort Street and running easterly\nalong the center lines of Frankfort and Dover Streets to the\nintersection of Dover Street and South Street; running southerly along\nthe center line of South Street to Peter Minuit Plaza; connecting\nthrough Peter Minuit Plaza to the center line of State Street and\nrunning northwesterly along the center line of State Street to the\nintersection of State Street and Battery Place; running westerly along\nthe center line of Battery Place to the intersection of Battery Place\nand West Street; and running northerly along the center line of West\nStreet to the intersection of West Street and Murray Street.\n (h) "Eligible multiple dwelling" shall mean a class A multiple\ndwelling, except a hotel, created from conversion of a non-residential\nbuilding, provided, however, that such multiple dwelling is located\nwithin an eligible area, and provided further, however, that the\naggregate floor area of commercial, community facility and accessory use\nspace within such multiple dwelling does not exceed twenty-five per\ncentum of the aggregate floor area of such multiple dwelling.\n (i) "Non-residential building" shall mean a structure or portion of a\nstructure having at least one floor, a roof and at least three walls\nenclosing all or most of the space used in connection with the structure\nor portion of the structure, which has a certificate of occupancy for\ncommercial, manufacturing or other non-residential use for not less than\nninety per centum of the aggregate floor area of such structure or\nportion of such structure, or other proof of such non-residential use as\nis acceptable to the department of housing preservation and development.\n (j) "Person" shall mean an individual, corporation, limited liability\ncompany, partnership, association, agency, trust, estate, foreign or\ndomestic government or subdivision thereof, or other entity.\n (k) "Recipient" shall mean an applicant to whom a certificate of\neligibility has been issued pursuant to this section, or the successor\nin interest of such applicant, provided that where a person who has\nentered into a lease or purchase agreement with the owner or lessee of\nexempt property has been a co-applicant, such person or the successor in\ninterest of such person shall be the recipient.\n 2. (a) Within a city having a population of one million or more\npersons, a tax lot containing an eligible multiple dwelling that is the\nsubject of a certificate of eligibility issued pursuant to this section\nshall be exempt from real property taxation for local purposes, other\nthan assessments for local improvements, on the amount of the assessed\nvalue attributable exclusively to the physical improvement, for a period\nnot to exceed twelve consecutive years beginning in the tax year\nimmediately following the issuance of a certificate of eligibility, so\nlong as such eligible multiple dwelling is used or held out for use for\ndwelling purposes, except as otherwise provided herein. During the first\neight years, the exemption shall equal the amount of the assessed value\nattributable exclusively to the physical improvement. During the ninth\nyear, the exemption shall equal eighty per centum of such amount; during\nthe tenth year, the exemption shall equal sixty per centum of such\namount; during the eleventh year, the exemption shall equal forty per\ncentum of such amount; and during the twelfth year, the exemption shall\nequal twenty per centum of such amount.\n The following table shall illustrate the computation of the exemption\npursuant to this paragraph:\n Tax Year Following Percentage of\n Date of Issuance of Applicable\n Certificate of Eligibility Exemption\n 1 100%\n 2 100%\n 3 100%\n 4 100%\n 5 100%\n 6 100%\n 7 100%\n 8 100%\n 9 80%\n 10 60%\n 11 40%\n 12 20%\n (b) Notwithstanding paragraph (a) of this subdivision, within a city\nhaving a population of one million or more persons, a tax lot containing\nan eligible multiple dwelling that is the subject of a certificate of\neligibility issued pursuant to this section and that is in a building\nthat, in accordance with procedures set forth in local law, was\ndesignated as a landmark before completion of conversion shall be exempt\nfrom real property taxation for local purposes, other than assessments\nfor local improvements, on the amount of the assessed value attributable\nexclusively to the physical improvement, for a period not to exceed\nthirteen consecutive years beginning in the tax year immediately\nfollowing the issuance of a certificate of eligibility, so long as such\neligible multiple dwelling is used or held out for use for dwelling\npurposes, except as otherwise provided herein. During the first nine\nyears, the exemption shall equal the amount of the assessed value\nattributable exclusively to the physical improvement. During the tenth\nyear, the exemption shall equal eighty per centum of such amount; during\nthe eleventh year, the exemption shall equal sixty per centum of such\namount; during the twelfth year, the exemption shall equal forty per\ncentum of such amount; and during the thirteenth year, the exemption\nshall equal twenty per centum of such amount.\n The following table shall illustrate the computation of the exemption\npursuant to this paragraph:\n Tax Year Following Percentage of\n Date of Issuance of Applicable\n Certificate of Eligibility Exemption\n 1 100%\n 2 100%\n 3 100%\n 4 100%\n 5 100%\n 6 100%\n 7 100%\n 8 100%\n 9 100%\n 10 80%\n 11 60%\n 12 40%\n 13 20%\n 2-a. Within a city having a population of one million or more persons,\na tax lot containing a non-residential building shall be exempt from\nreal property taxation for local purposes, other than assessments for\nlocal improvements, on the amount of the assessed value attributable\nexclusively to the physical improvement, for the tax year immediately\nfollowing the first taxable status date that meets the following two\nconditions: (i) such taxable status date occurs after the commencement\nof conversion and (ii) such taxable status date is the first taxable\nstatus date on which an increase in assessed value attributable to such\nphysical improvement has been assessed. Notwithstanding the foregoing\nsentence, no such exemption shall be granted if completion of conversion\noccurs before the fifteenth day of April following such taxable status\ndate. In the event that an exemption granted pursuant to this\nsubdivision is not reflected on the final assessment roll prepared on\nthe basis of such taxable status date, the commissioner of finance is\nhereby authorized to refund or credit in the fiscal year relating to\nsuch taxable status date or in the next following fiscal year an amount\nequivalent to the exempt amount multiplied by the applicable tax rate.\nIn addition to any other basis for revocation of an exemption granted\npursuant to this section, the exemption granted pursuant to this\nsubdivision to a non-residential building shall be revoked if such\nbuilding is not converted into an eligible multiple dwelling that is the\nsubject of a certificate of eligibility issued pursuant to this section.\n 3. (a) Within a city having a population of one million or more\npersons, in addition to the benefits set forth in subdivision two of\nthis section, a tax lot containing an eligible multiple dwelling that is\nthe subject of a certificate of eligibility issued pursuant to this\nsection shall receive an abatement of real property taxes for a period\nnot to exceed fourteen consecutive years beginning in the tax year\nimmediately following the issuance of a certificate of eligibility, so\nlong as such eligible multiple dwelling is used or held out for use for\ndwelling purposes, except as otherwise provided herein. During the first\nyear, the abatement shall be equal to the amount of the real property\ntax that would have been due but for such abatement, provided, however,\nthat if the tax lot, during the first year of such abatement, was fully\nor partially exempt from real property taxes, other than pursuant to the\nexemption authorized by this section, then the abatement shall equal the\namount of the real property tax that would have been due but for such\nfull or partial exemption. During the second through tenth years, the\nabatement shall equal one hundred per centum of such amount; during the\neleventh year, the abatement shall equal eighty per centum of such\namount; during the twelfth year, the abatement shall equal sixty per\ncentum of such amount; during the thirteenth year, the abatement shall\nequal forty per centum of such amount; and during the fourteenth year,\nthe abatement shall equal twenty per centum of such amount.\n The following table shall illustrate the computation of the abatement\npursuant to this paragraph:\n Tax Year Following Percentage of\n Date of Issuance of Applicable\n Certificate of Eligibility Abatement\n 1 100%\n 2 100%\n 3 100%\n 4 100%\n 5 100%\n 6 100%\n 7 100%\n 8 100%\n 9 100%\n 10 100%\n 11 80%\n 12 60%\n 13 40%\n 14 20%\n (b) Notwithstanding paragraph (a) of this subdivision, within a city\nhaving a population of one million or more persons, in addition to the\nbenefits set forth in subdivision two of this section, a tax lot\ncontaining an eligible multiple dwelling that is the subject of a\ncertificate of eligibility issued pursuant to this section and that is\nin a building that, in accordance with procedures set forth in local\nlaw, was designated as a landmark before completion of conversion shall\nreceive an abatement of real property taxes for a period not to exceed\nfifteen consecutive years beginning in the tax year immediately\nfollowing the issuance of a certificate of eligibility, so long as such\neligible multiple dwelling is used or held out for use for dwelling\npurposes, except as otherwise provided herein. During the first year,\nthe abatement shall be equal to the amount of the real property tax that\nwould have been due but for such abatement, provided, however, that if\nthe tax lot, during the first year of such abatement, was fully or\npartially exempt from real property taxes, other than pursuant to the\nexemption authorized by this section, then the abatement shall equal the\namount of the real property tax that would have been due but for such\nfull or partial exemption. During the second through eleventh years, the\nabatement shall equal one hundred per centum of such amount; during the\ntwelfth year, the abatement shall equal eighty per centum of such\namount; during the thirteenth year, the abatement shall equal sixty per\ncentum of such amount; during the fourteenth year, the abatement shall\nequal forty per centum of such amount; and during the fifteenth year,\nthe abatement shall equal twenty per centum of such amount.\n The following table shall illustrate the computation of the abatement\npursuant to this paragraph:\n Tax Year Following Percentage of\n Date of Issuance of Applicable\n Certificate of Eligibility Abatement\n 1 100%\n 2 100%\n 3 100%\n 4 100%\n 5 100%\n 6 100%\n 7 100%\n 8 100%\n 9 100%\n 10 100%\n 11 100%\n 12 80%\n 13 60%\n 14 40%\n 15 20%\n (c) If, as a result of application to the tax commission or a court\norder or action by the department of finance, the billable assessed\nvalue is reduced, the department of finance shall recalculate the\nabatement utilizing such reduced billable assessed value. The amount\nequal to the difference between the abatement originally granted and the\nabatement as so recalculated shall be deducted from any refund otherwise\npayable or remission otherwise due as a result of such reduction in\nbillable assessed value, and any balance of such amount remaining unpaid\nafter making any such deduction shall be paid to the department of\nfinance within thirty days from the date of mailing by the department of\nfinance of a notice of the amount payable. Such amount payable shall\nconstitute a tax lien on the eligible multiple dwelling as of the date\nof such notice and, if not paid within such thirty-day period, penalty\nand interest at the rate applicable to delinquent taxes on such eligible\nmultiple dwelling shall be charged and collected on such amount from the\ndate of such notice to the date of payment.\n 4. If the aggregate floor area of commercial, community facility and\naccessory use space exceeds twelve per centum of the aggregate floor\narea of any building receiving benefits pursuant to this section, the\nbenefits provided pursuant to this section shall be equal to the amount\nprovided by subdivisions two, two-a and three of this section, reduced\nby a percentage equal to the difference between the per centum of the\naggregate floor area that is commercial, community facility and\naccessory use space and twelve per centum, provided, however, that if\nthe aggregate floor area of such building contains more than twenty-five\nper centum of commercial, community facility and accessory use space no\nbenefits shall be available pursuant to this section. In calculating\naggregate floor area for purposes of subdivision two-a of this section,\n"aggregate floor area" shall mean the intended aggregate floor area\nafter completion of conversion, as set forth in the building plans filed\nwith the department of buildings. If, after completion of conversion,\nthe actual aggregate floor area of commercial, community facility and\naccessory use space is greater than the intended aggregate floor area of\nsuch space and the actual aggregate floor area of such space exceeds\ntwelve per centum of the actual aggregate floor area, then the benefits\ngranted pursuant to subdivision two-a of this section shall be revoked\nor partially revoked, as required, to reflect the actual aggregate floor\narea of such space. If a building contains a separately assessed\nnon-residential parcel, the aggregate floor area of such parcel shall\nnot be considered in calculating the aggregate floor area of commercial,\ncommunity facility and accessory use space relevant to determining\neligibility for, and amount of, benefits pursuant to this section. For\nthe purposes of this section, accessory use space shall not include home\noccupation space or accessory parking space located not more than\ntwenty-three feet above the curb level.\n 5. Benefits under this section may not be combined with benefits under\nany other section of this chapter for the same tax lot.\n 6. Notwithstanding the provisions of any local law for the\nstabilization of rents in multiple dwellings or the emergency tenant\nprotection act of nineteen seventy-four, the rents of each dwelling unit\nin an eligible multiple dwelling shall be fully subject to control under\nsuch local law, unless exempt under such local law from control by\nreason of the cooperative or condominium status of the dwelling unit,\nfor the entire period for which the eligible multiple dwelling is\nreceiving benefits pursuant to this section, provided, however, that for\npurposes of this subdivision, an eligible multiple dwelling receiving\nbenefits pursuant to this section whose benefits are suspended,\nterminated or revoked by the department of housing preservation and\ndevelopment shall be deemed to be receiving benefits for the length of\ntime such benefits would have been received if such benefits had not\nbeen suspended, terminated or revoked, or for the period such local law\nis in effect, whichever is shorter. Thereafter, such rents shall\ncontinue to be subject to such control, except that such rents that\nwould not have been subject to such control but for this subdivision,\nshall be decontrolled if the landlord has included in each lease and\nrenewal thereof for such unit for the tenant in residence at the time of\nsuch decontrol a notice in at least twelve point type informing such\ntenant that the unit shall become subject to such decontrol upon the\nexpiration of benefits pursuant to this section.\n 7. (a) In a non-residential building of less than one hundred thousand\nsquare feet of aggregate floor area, completion of conversion to an\neligible multiple dwelling of at least seventy-five per centum of the\naggregate floor area of such non-residential building must take place\nwithin three years of commencement of conversion.\n (b) Only the aggregate floor area for which conversion is completed\nwithin such three-year period shall be considered in calculating the\nexemption and abatement provided pursuant to this section.\n (c) In a non-residential building of less than one hundred thousand\nsquare feet of aggregate floor area containing a separately assessed\nnon-residential parcel, the aggregate floor area of such separately\nassessed non-residential parcel shall not be considered in determining\nwhether seventy-five per centum of the aggregate floor area of such\nnon-residential building has been converted to an eligible multiple\ndwelling.\n 8. (a) In a non-residential building of one hundred thousand square\nfeet or more of aggregate floor area, completion of conversion to an\neligible multiple dwelling of at least seventy-five per centum of the\naggregate floor area of such non-residential building must take place\nwithin five years of commencement of conversion, provided, however, that\ncompletion of conversion to an eligible multiple dwelling of at least\nfifty per centum of the aggregate floor area of such non-residential\nbuilding must take place within three years of commencement of\nconversion, and provided further that proof of completion of partial\nconversion within three years shall be submitted with an application for\na certificate of eligibility for full exemption and abatement benefits\npursuant to this section.\n (b) In a non-residential building of one hundred thousand square feet\nor more of aggregate floor area in which completion of conversion to an\neligible multiple dwelling of at least fifty per centum of the aggregate\nfloor area of such non-residential building has taken place within three\nyears of commencement of conversion, and which is the subject of a\ncertificate of eligibility for partial exemption and partial abatement\nissued pursuant to this section, partial exemption and partial abatement\nof real property taxes shall be available, as follows: (i) partial\nexemption benefits shall equal the amount of the assessed value\nattributable exclusively to the physical improvement resulting from the\nconversion of at least fifty per centum of the aggregate floor area of\nthe non-residential building that has received a temporary certificate\nof occupancy and (ii) partial abatement benefits shall be equal to the\namount of the real property tax that would have been due during the\nfirst year of such partial abatement but for such partial abatement upon\nthe amount of square feet of aggregate floor area of the non-residential\nbuilding that has received a temporary certificate of occupancy for\nconversion of at least fifty per centum of the aggregate floor area of\nthe non-residential building, provided, however, that if the tax lot,\nduring the first year of such partial abatement was fully or partially\nexempt from real property taxes, other than pursuant to the exemption\nauthorized by this section, then the partial abatement shall be equal to\nthe amount of real property tax that would have been due upon such\namount of square feet of aggregate floor area of the non-residential\nbuilding but for such full or partial exemption. Nothing in this\nparagraph shall be deemed to require an applicant to apply for partial\nexemption or abatement benefits pursuant to this section, provided,\nhowever, that if an applicant applies for a certificate of eligibility\nfor such benefits, he or she shall submit proof of completion of partial\nconversion with the application for such certificate.\n (c) In a non-residential building of one hundred thousand square feet\nor more of aggregate floor area only the aggregate floor area for which\nconversion is completed within the five-year period specified in\nparagraph (a) of this subdivision or, in the case of partial exemption\nfrom or partial abatement of real property taxes, the three-year period\nspecified in paragraph (b) of this subdivision, shall be considered in\ncalculating the exemption and abatement provided pursuant to this\nsection, provided, however, that neither partial exemption from nor\npartial abatement of real property taxes shall be available for\ncommercial, community facility or accessory use space.\n (d) In a non-residential building of one hundred thousand square feet\nor more of aggregate floor area containing a separately assessed\nnon-residential parcel, the aggregate floor area of such separately\nassessed non-residential parcel shall not be considered in determining\nwhether seventy-five per centum or, in the case of partial exemption\nfrom or partial abatement of real property taxes, fifty per centum of\nthe aggregate floor area of such non-residential building has been\nconverted to an eligible multiple dwelling.\n (e) Any partial exemption from or partial abatement of real property\ntaxes granted pursuant to this section for a non-residential building of\none hundred thousand square feet or more of aggregate floor area shall\nbe revoked if completion of conversion to an eligible multiple dwelling\nof at least seventy-five per centum of the aggregate floor area of such\nnon-residential building has not taken place within five years of\ncommencement of conversion.\n (f) The time periods specified in subdivisions two and three of this\nsection shall begin upon receipt of any partial exemption from or\npartial abatement of real property taxes for a non-residential building\nof one hundred thousand square feet or more of aggregate floor area.\n 9. (a) An application for a certificate of eligibility for full\nexemption and abatement benefits pursuant to this section shall be filed\nwith the department of housing preservation and development no later\nthan close of business day on the thirty-first day of March immediately\nfollowing the first taxable status date following completion of\nconversion. If a certificate of eligibility for partial exemption and\nabatement benefits pursuant to this section is sought by an applicant,\nan application for a certificate of eligibility for such benefits shall\nbe filed with the department of housing preservation and development no\nlater than close of business day on the thirty-first day of March\nimmediately following the first taxable status date following completion\nof partial conversion. The department of housing preservation and\ndevelopment shall issue a certificate of eligibility for benefits upon\ndetermining that the applicant satisfies the requirements of this\nsection.\n (b) In addition to any other information required by the department of\nhousing preservation and development, an application for a certificate\nof eligibility for benefits under this section shall state that the\napplicant agrees to comply with and be subject to rules promulgated by\nthe department of finance and the department of housing preservation and\ndevelopment to secure compliance with this section and all applicable\nlocal, state and federal laws. Such application shall also certify that\nall taxes, water charges and sewer rents currently due and owing on the\nproperty which is the subject of the application have been paid or are\ncurrently being paid in timely installments pursuant to written\nagreement with the department of finance or other appropriate agency.\n (c) The burden of proof shall be on the applicant to show by clear and\nconvincing evidence that the requirements for granting benefits under\nthis section have been satisfied. The department of housing preservation\nand development shall have the authority to require that statements in\nconnection with the application shall be made under oath.\n (d) The department of finance and the department of housing\npreservation and development may promulgate rules to carry out the\npurposes of this section, including, but not limited to, rules providing\nfor such administrative charges or fees as are necessary to defray\nexpenses in administering the benefit program provided pursuant to this\nsection and rules defining, or expanding upon the definition of, terms\nused in this section.\n 10. Any tax lot which is partly located inside the eligible area shall\nbe deemed to be entirely located inside such area.\n 11. No benefits pursuant to this section shall be granted for any\nconversion to an eligible multiple dwelling unless the applicant shall\nfile, together with the application for a certificate of eligibility, an\naffidavit setting forth the following information:\n (a) a statement that within the seven years immediately preceding the\ndate of application for a certificate of eligibility, neither the\napplicant, nor any person owning a substantial interest in the property\nas defined in paragraph (c) of this subdivision, nor any officer,\ndirector or general partner of the applicant or such person was finally\nadjudicated by a court of competent jurisdiction to have violated\nsection two hundred thirty-five of the real property law or any section\nof article one hundred fifty of the penal law or any similar arson law\nof another jurisdiction with respect to any building, or was an officer,\ndirector or general partner of a person at the time such person was\nfinally adjudicated to have violated such law; and\n (b) a statement setting forth any pending charges alleging violation\nof section two hundred thirty-five of the real property law or any\nsection of article one hundred fifty of the penal law or any similar\narson law of another jurisdiction with respect to any building by the\napplicant or any person owning a substantial interest in the property as\ndefined in paragraph (c) of this subdivision, or any officer, director\nor general partner of the applicant or such person, or any person for\nwhom the applicant or person owning a substantial interest in the\nproperty is an officer, director or general partner.\n (c) "Substantial interest" as used in this subdivision and subdivision\ntwelve of this section shall mean ownership and control of an interest\nof ten per centum or more in property or any person owning a property.\n 12. (a) If any person described in the statement required by paragraph\n(b) of subdivision eleven of this section or paragraph (b) of this\nsubdivision is finally adjudicated by a court of competent jurisdiction\nto be guilty of any charge listed in such statement, the recipient shall\ncease to be eligible for benefits pursuant to this section and shall\npay, with interest, any taxes for which benefits were claimed pursuant\nto this section.\n (b) The recipient shall, on the certificate of continuing use, state\nwhether any charges alleging violation by the recipient or any person\nowning a substantial interest in the property, or any officer, director\nor general partner of the recipient or person owning a substantial\ninterest in the property, or any person for whom the recipient or person\nowning a substantial interest in the property is an officer, director or\ngeneral partner, of section two hundred thirty-five of the real property\nlaw or any section of article one hundred fifty of the penal law or any\nsimilar arson law of another jurisdiction, are pending. For purposes of\nthis paragraph, "substantial interest" shall have the same meaning as\nset forth in paragraph (c) of subdivision eleven of this section.\n 13. In addition to any other qualifications for benefits pursuant to\nthis section, an applicant must be:\n (a) obligated to pay real property tax on the property for which\nbenefits are sought, whether such obligation arises because of record\nownership of such property, or because the obligation to pay such tax\nhas been assumed by contract; or\n (b) the record owner or lessee of property which is exempt from real\nproperty taxation who has entered into an agreement to sell or lease\nsuch property to another person. Such person shall be a co-applicant\nwith such owner or lessee.\n 14. A co-applicant with a public entity shall be eligible to receive\nbenefits pursuant to this section, provided that for such period as the\nproperty which is the subject of the certificate of eligibility is\nexempt from real property taxation because it is owned or controlled by\na public entity no benefits shall be available to such recipient\npursuant to this section. Such recipient shall receive benefits pursuant\nto this section when such property ceases to be eligible for exemption\npursuant to other provisions of law, as follows: the recipient shall,\ncommencing with the date such tax exemption ceases, and continuing until\nthe expiration of the benefit period pursuant to this section, receive\nthe benefits to which such recipient is entitled in the corresponding\ntax year pursuant to this section.\n 15. For the duration of the benefit period, the recipient shall file\nannually with the department of housing preservation and development, on\nor before the taxable status date, a certificate of continuing use. Such\ncertificate shall be on a form prescribed by the department of housing\npreservation and development. The department of housing preservation and\ndevelopment shall have the authority to require such information as it\ndeems necessary to determine whether the recipient has established\ncontinuing eligibility for benefits. The department of housing\npreservation and development shall have the authority to terminate\nbenefits pursuant to this section upon failure of the recipient to file\nsuch certificate by the taxable status date. The burden of proof shall\nbe on the recipient to establish continuing eligibility for benefits and\nthe department of housing preservation and development may require that\nstatements made in such certificate shall be made under oath.\n 16. Any recipient whose property is the subject of a certificate of\neligibility for benefits pursuant to this section who converts aggregate\nfloor area within such property from the use authorized pursuant to this\nsection where such conversion results in less that seventy-five per\ncentum of the aggregate floor area of such property being used or held\nout for use for dwelling purposes, or where such conversion results in\nmore than twenty-five per centum of such aggregate floor area being used\nor held out for use for commercial, community facility or accessory use\nspace, or where such conversion in a building of one hundred thousand\nsquare feet or more of aggregate floor area that has a certificate of\neligibility for a partial exemption or partial abatement pursuant to\nsubdivision eight of this section results in less than fifty per centum\nof such aggregate floor area being used or held out for use for dwelling\npurposes, shall cease to be eligible for benefits as of the last date\nupon which the recipient met the requirements of this section and proves\nby clear and convincing evidence that at least seventy-five per centum\nof the aggregate floor area of the property was used or held out for use\nfor dwelling purposes, or twenty-five per centum or less of the\naggregate floor area of such property was used or held out for use for\ncommercial, community facility or accessory use space, or at least fifty\nper centum of the aggregate floor area of such property in a building of\none hundred thousand square feet or more which is receiving partial\nexemption or partial abatement benefits was used or held out for use for\ndwelling purposes, respectively. Such recipient shall pay, with\ninterest, any taxes for which benefits were claimed after such date,\nincluding the pro-rata share of tax for which any benefits were claimed\nduring the tax year in which the property was converted to a use not\neligible for benefits under this section.\n 17. All taxes plus interest required to be paid retroactively pursuant\nto this section shall constitute a tax lien as of the date that it is\ndetermined that such taxes and interest are owed. All interest shall be\ncalculated from the date the taxes would have been due but for the\nbenefits claimed pursuant to this section at three per centum above the\napplicable rate of interest imposed by such city generally for\nnon-payment of real property tax with respect to such property for the\nperiod in question.\n 18. (a) The department of housing preservation and development may\ndeny, reduce, suspend, terminate or revoke any exemption from or\nabatement of tax payments pursuant to this section whenever: (i) a\nrecipient fails to comply with the requirements of this section or the\nrules promulgated hereunder; or (ii) an application, certificate, report\nor other document submitted by an applicant or recipient pursuant to\nthis section or the rules promulgated hereunder contains a false or\nmisleading statement as to a material fact or omits to state any\nmaterial fact necessary in order to make the statements therein not\nfalse or misleading. The department of housing preservation and\ndevelopment may declare any applicant or recipient referred to in\nsubparagraph (i) or (ii) of this paragraph to be ineligible for future\nbenefits pursuant to this section for the same or other property.\n (b) Notwithstanding any other law to the contrary, a recipient shall\nbe personally liable for any taxes owed pursuant to this section\nwhenever such recipient fails to comply with this section or the rules\npromulgated hereunder, or makes such false or misleading statement or\nomission, and the department of housing preservation and development\ndetermines that such act was due to the recipient's willful neglect, or\nthat under the circumstances such act constituted a fraud on the\ndepartment of housing preservation and development, or a buyer or\nprospective buyer of the property. The remedy provided herein for an\naction in personam shall be in addition to any other remedy or procedure\nfor the enforcement of collection of delinquent taxes provided by any\ngeneral, special or local law. Any lease provision which obligates a\ntenant to pay taxes which become due because of willful neglect or fraud\nby the recipient, or otherwise relieves or indemnifies the recipient\nfrom any personal liability arising hereunder, shall be void as against\npublic policy except where the imposition of such taxes or liability is\noccasioned by actions of the tenant in violation of the lease.\n (c) In order to carry out the purposes of this section the department\nof housing preservation and development may administer oaths to and take\nthe testimony of any person, including but not limited to the owner of\nproperty which is the subject of an application for a certificate of\neligibility or a certificate of eligibility pursuant to this section and\nissue subpoenas requiring the attendance of persons and the production\nof such bills, books, papers or other documents as it shall deem\nnecessary.\n (d) If, during the benefit period, any real property tax or water or\nsewer charge due and payable with respect to property receiving an\nexemption or abatement pursuant to this section shall remain unpaid for\nat least one year following the date upon which such tax or charge\nbecame due and payable, all exemptions and abatements granted pursuant\nto this section with respect to such property shall be revoked, unless\nwithin thirty days from the mailing of a notice of revocation by the\ndepartment of finance satisfactory proof is presented to the department\nof finance that any and all delinquent taxes and charges owing with\nrespect to such property as of the date of such notice have been paid in\nfull or are currently being paid in timely installments pursuant to a\nwritten agreement with the department of finance or other appropriate\nagency. Any revocation pursuant to this paragraph shall be effective\nwith respect to real property tax which became due and payable following\nthe date of such revocation.\n