§ 421-PP — Exemption of newly converted or constructed fully income restricted rental multiple dwellings

New York § 421-PP

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

Text

§ 421-pp. Exemption of newly converted or constructed fully income\nrestricted rental multiple dwellings. 1. (a) A city, town or village\nmay, by local law, provide for the exemption of rental multiple\ndwellings constructed or converted in a benefit area designated in such\nlocal law from taxation and special ad valorem levies, as provided in\nthis section. Subsequent to the adoption of such a local law, any other\nmunicipal corporation in which the designated benefit area is located\nmay likewise exempt such property from its taxation and special ad\nvalorem levies by local law, or in the case of a school district, by\nresolution.\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) As used in this section, the term "rental multiple dwelling" means\na structure, other than a hotel, consisting of ten or more dwelling\nunits, where all but a maximum of two of the units are rented for\nresidential purposes, and all of such units, upon initial rental and\nupon each subsequent rental following a vacancy during the restriction\nperiod or extended restriction period, as applicable, is affordable to\nand restricted 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. The two residential units that are not\nincome restricted must be occupied by superintendents, caretakers,\nmanagers or other employees to whom the space is provided as part or all\nof their compensation without payment of rent and who are employed for\nthe purpose of rendering services in connection with the premises of\nwhich the housing accommodation is a part. In the event no unit is\nprovided or rented to such an employee, all units in the building must\nbe income restricted pursuant to this paragraph. Provided further that\nany local law authorizing an exemption pursuant to this section may\nprovide for the area median income weighted average within the amounts\nset forth in this paragraph. Such restriction period shall be in effect\ncoterminous with the benefit period, provided, however, that the tenant\nor tenants in an income restricted dwelling unit at the time such\nrestriction period ends shall have the right to lease renewals at the\nincome restricted level until such time as such tenant or tenants\npermanently vacate the dwelling 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 thirty years. Provided,\nhowever:\n (a) Taxes shall be paid during the exemption period in an amount to be\ndetermined by the local law providing the exception pursuant to this\nsection, provided, however, that amount shall be no greater than ten per\ncentum of the shelter rent of the eligible rental multiple dwelling\nexempted pursuant to this section.\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 newly constructed property which is used partially\nas a rental multiple dwelling and partially for commercial or other\npurposes, the portion of the newly constructed property that is used as\na 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. The exemption authorized by this section shall not be available in\na city with a population of one million or more.\n 7. 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