§ 421-P — Exemption of newly-constructed or converted rental multiple dwellings

New York § 421-P

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

Text

* § 421-p. Exemption of newly-constructed or converted rental multiple\ndwellings. 1. (a) A city, town or village may, by local law, provide for\nthe exemption of rental multiple dwellings constructed or converted in a\nbenefit area designated in such local law from taxation and special ad\nvalorem levies, as provided in this section. Subsequent to the adoption\nof such a local law, any other municipal corporation in which the\ndesignated benefit area is located may likewise exempt such property\nfrom its taxation and special ad valorem levies by local law, or in the\ncase of a school district, by resolution.\n (b) As used in this section, the term "benefit area" means the area\nwithin a city, town or village, designated by local law, to which an\nexemption, established pursuant to this section, applies.\n (c) The term "rental multiple dwelling" means a structure, other than\na hotel, consisting of ten or more dwelling units, where all of the\nunits are rented for residential purposes, and twenty-five percent of\nsuch units, upon initial rental and upon each subsequent rental\nfollowing a vacancy during the benefit period, are affordable to and\nrestricted to occupancy by individuals or families whose household\nincome does not exceed a weighted average of no less than sixty percent\nof the area median income and no more than eighty percent of the area\nmedian income, adjusted for family size, at the time that such\nhouseholds initially occupy such dwelling units, provided further that\nall of the income restricted units upon initial rental and upon each\nsubsequent rental following a vacancy during the restriction period or\nextended restriction period, as applicable, shall be affordable to and\nrestricted to occupancy by individuals or families whose household\nincome does not exceed one hundred percent of the area median income,\nadjusted for family size, at the time that such households initially\noccupy such dwelling units. Provided further, that any local law\nauthorizing an exemption pursuant to this section may provide for the\narea median income weighted average within the amounts set forth in this\nparagraph. Such restriction period shall be in effect coterminous with\nthe benefit period, provided, however, that the tenant or tenants in an\nincome restricted dwelling unit at the time such restriction period ends\nshall have the right to lease renewals at the income restricted level\nuntil such time as such tenant or tenants permanently vacate the\ndwelling unit.\n 2. Eligible newly-constructed or converted rental multiple dwellings\nin a designated benefit area shall be wholly exempt from taxation while\nunder construction, subject to a maximum of three years. Such property\nshall then be exempt for an additional period of twenty-five years,\nprovided, that the exemption percentage during such additional period of\ntwenty-five years shall begin at ninety-six percent and shall decrease\nby four percent each year thereafter. Provided, however:\n (a) Taxes shall be paid during the exemption period in an amount at\nleast equal to the taxes paid on such land and any improvements thereon\nduring the tax year preceding the commencement of such exemption.\n (b) No other exemption may be granted concurrently to the same\nimprovements under any other section of law.\n 3. To be eligible for exemption under this section, any new\nconstruction shall take place on vacant, predominantly vacant or\nunderutilized land, or on land improved with a non-conforming use or on\nland containing one or more substandard or structurally unsound\ndwellings, or a dwelling that has been certified as unsanitary by the\nlocal health agency. The provisions of this subdivision shall not apply\nto any new conversions undertaken pursuant to this section.\n 4. Application for exemption under this section shall be made on a\nform prescribed by the commissioner and filed with the assessor on or\nbefore the applicable taxable status date.\n 5. In the case of a newly constructed or converted property which is\nused partially as a rental multiple dwelling and partially for\ncommercial or other purposes, the portion of the property that is used\nas a rental multiple dwelling shall be eligible for the exemption\nauthorized by this section if:\n (a) The square footage of the portion used as a rental multiple\ndwelling represents at least fifty percent of the square footage of the\nentire property;\n (b) The rental units are affordable to individuals or families as\ndetermined according to the criteria set forth in paragraph (c) of\nsubdivision one of this section; and\n (c) The requirements of this section are otherwise satisfied with\nrespect to the portion of the property used as a rental multiple\ndwelling.\n 6. (a) For the purposes of this subdivision, the following terms shall\nhave the following meanings:\n (i) "Applicant" shall mean an applicant for the exemption authorized\nby this section and/or any successor to such applicant.\n (ii) "Covered building service employer" shall mean any applicant\nand/or any employer of building service employees for such applicant\nincluding, but not limited to, a property management company or\ncontractor.\n (iii) "Building service employee" shall mean any person who is\nregularly employed at, and performs work in connection with the care or\nmaintenance of, an eligible multiple dwelling, including, but not\nlimited to, a watchman, guard, doorman, building cleaner, porter,\nhandyman, janitor, gardener, groundskeeper, elevator operator and\nstarter, and window cleaner, but not including persons regularly\nscheduled to work fewer than eight hours per week at such eligible\nmultiple dwelling.\n (iv) "Fiscal officer" shall mean the commissioner of labor.\n (v) "Eligible multiple dwelling" shall mean any newly-constructed or\nconverted rental multiple dwellings that receive benefits pursuant to\nthis section.\n (b) All building service employees employed by the covered building\nservice employer at the eligible multiple dwelling shall receive the\napplicable prevailing wage in accordance with article nine of the labor\nlaw for the duration of the benefit period, regardless of whether such\nbenefits are revoked or terminated. Such applicable prevailing wage\nshall in no case be lower than the prevailing wage provided to building\nservice employees for work performed within the respective county under\nthe collective bargaining agreement covering the largest number of\nhourly building service employees employed at residential buildings\nwithin such county in each job classification established by the\ncommissioner of labor. The commissioner of labor shall determine the\napplicable prevailing wage rates and prevailing rate of fringe benefits\nfor each job classification consistent with the corresponding job\nclassifications covered by such collective bargaining agreements. To\ndetermine the applicable supplement benefit rate, the commissioner of\nlabor shall identify the applicable hourly, weekly or monthly cost to an\nemployer as specified under the applicable collective bargaining\nagreement of providing such supplements.\n (c) (i) The fiscal officer shall have the power to enforce the\nprovisions of this subdivision. In enforcing such provisions, the fiscal\nofficer shall have the power: (A) to investigate or cause an\ninvestigation to be made to determine the prevailing wages for building\nservice employees, and in making such investigation, the fiscal officer\nmay utilize wage and fringe benefit data from various sources,\nincluding, but not limited to, data and determinations of federal, state\nor other governmental agencies; provided, however, that the provision of\na dwelling unit shall not be considered wages or a fringe benefit; (B)\nto institute and conduct inspections at the site of the work or\nelsewhere; (C) to examine the books, documents and records pertaining to\nthe wages paid to, and the hours of work performed by, building service\nemployees; (D) to hold hearings and, in connection therewith, to issue\nsubpoenas, the enforcement of which shall be regulated by the civil\npractice law and rules, administer oaths and examine witnesses; (E) to\nmake a classification by craft, trade or other generally recognized\noccupational category of the building service employees and to determine\nwhether such work has been performed by the building service employees\nin such classification; (F) to require the applicant to file with the\nfiscal officer a record of the wages actually paid to the building\nservice employees and of their hours of work; (G) to delegate any of the\nforegoing powers to such fiscal officer's deputy or other authorized\nrepresentative; (H) to promulgate rules as such fiscal officer shall\nconsider necessary for the proper execution of the duties,\nresponsibilities and powers conferred upon him or her by the provisions\nof this subdivision; and (I) to prescribe appropriate sanctions for\nfailure to comply with the provisions of this subdivision.\n (ii) For each violation of paragraph (b) of this subdivision, the\nfiscal officer may require the payment of:\n (A) back wages and fringe benefits;\n (B) liquidated damages up to three times the amount of the back wages\nand fringe benefits for willful violations; and/or\n (C) reasonable attorneys' fees. If the fiscal officer finds that the\napplicant has failed to comply with the provisions of this subdivision,\nsuch fiscal officer shall present evidence of such non-compliance to the\nvillage, town, or city that enacted a local law pursuant to this\nsection, or to any municipal agency or entity identified in such local\nlaw.\n (d) Paragraph (b) of this subdivision shall not be applicable to: (i)\nan eligible multiple dwelling containing less than thirty dwelling\nunits; or (ii) an eligible multiple dwelling whose new construction or\nconversion is carried out with the substantial assistance of grants,\nloans or subsidies provided by a federal, state or local governmental\nagency or instrumentality pursuant to a program for the development of\naffordable housing.\n (e) The applicant shall submit a sworn affidavit with its application\ncertifying that it shall ensure compliance with the requirements of this\nsubdivision or is exempt in accordance with paragraph (d) of this\nsubdivision. Upon the approval of the village, town, or city that\nenacted a local law pursuant to this section, or of any municipal agency\nor entity identified in such local law, of such application, the\napplicant who is not exempt in accordance with paragraph (d) of this\nsubdivision shall submit annually a sworn affidavit to the fiscal\nofficer certifying that it shall ensure compliance with the requirements\nof this subdivision.\n (f) The village, town, or city that enacted a local law pursuant to\nthis section, or any municipal agency or entity identified in such local\nlaw shall annually publish a list of all eligible sites subject to the\nrequirements of this subdivision and the affadavits required pursuant to\nparagraph (e) of this subdivision.\n (g) If a covered building service employer has committed three\nviolations of the requirements of paragraph (b) of this subdivision with\nrespect to the same eligible multiple dwelling within a five-year\nperiod, the village, town, or city that enacted a local law pursuant to\nthis section, or any municipal agency or entity identified in such local\nlaw may revoke any benefits associated with such eligible multiple\ndwelling under this section. For purposes of this paragraph, a\n"violation" of paragraph (b) of this subdivision will be deemed a\nfinding by the fiscal officer that a covered building service employer\nhas failed to comply with paragraph (b) of this subdivision and has\nfailed to cure the deficiency within three months of such finding.\nProvided, however, that after a second such violation, the applicant\nshall be notified that any further violation may result in the\nrevocation of benefits under this section and that the fiscal officer\nshall publish on its website a list of all applicants with two\nviolations as defined in this paragraph. If benefits are terminated or\nrevoked for failure to comply with this subdivision all of the\naffordable housing units shall remain subject to rent stabilization and\nall other requirements of this section for the duration of the\nrestriction period, regardless of whether such benefits have been\nterminated or revoked.\n 7. The exemption authorized by this section shall not be available in\na city with a population of one million or more.\n 8. Any recipient of the exemption authorized by this section or their\ndesignee shall certify compliance with the provisions of this section\nunder penalty of perjury, at such time or times and in such manner as\nmay be prescribed in the local law adopted by the city, town or village\npursuant to paragraph (a) of subdivision one of this section, or by a\nsubsequent local law. Such city, town or village may establish such\nprocedures as it deems necessary for monitoring and enforcing compliance\nof an eligible building with the provisions of this section.\n * NB There are two § 421-p's\n