§ 467-M — Exemption from local real property taxation of certain multiple dwellings in a city having a population of one million or more

New York § 467-M

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

Text

§ 467-m. Exemption from local real property taxation of certain\nmultiple dwellings in a city having a population of one million or more.\n1. Definitions. For purposes of this section, the following terms shall\nhave the following meanings:\n a. "Affordable housing from commercial conversions tax incentive\nbenefits" hereinafter referred to as "AHCC program benefits", shall mean\nthe exemption from real property taxation authorized pursuant to this\nsection.\n b. "Affordability requirement" shall mean that within any eligible\nmultiple dwelling: (i) not less than twenty-five percent of the dwelling\nunits are affordable housing units; (ii) not less than five percent of\nthe dwelling units are affordable housing forty percent units; (iii) the\nweighted average of all income bands for all of the affordable housing\nunits does not exceed eighty percent of the area median income, adjusted\nfor family size; (iv) there are no more than three income bands for all\nof the affordable housing units; and (v) no income band for affordable\nhousing units exceeds one hundred percent of the area median income,\nadjusted for family size.\n c. "Affordable housing forty percent unit" shall mean a dwelling unit\nthat: (i) is situated within the eligible multiple dwelling for which\nAHCC program benefits are granted; and (ii) upon initial rental and upon\neach subsequent rental following a vacancy during the restriction\nperiod, is affordable to and restricted to occupancy by individuals or\nfamilies whose household income does not exceed forty percent of the\narea median income, adjusted for family size, at the time that such\nhousehold initially occupies such dwelling unit.\n d. "Affordable housing unit" shall mean, collectively and\nindividually: (i) an affordable housing forty percent unit; and (ii)\nany other unit that meets the affordability requirement upon initial\nrental and upon each subsequent rental following a vacancy during the\nrestriction period, and is affordable to and restricted to occupancy by\nindividuals or families whose household income does not exceed the\nincome bands established in conjunction with such affordability\nrequirement.\n e. "Agency" shall mean the New York city department of housing\npreservation and development.\n f. "Application" shall mean an application for AHCC program benefits.\n g. "Building service employee" shall mean any person who is regularly\nemployed 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 h. "Commencement date" shall mean, with respect to an eligible\nconversion, the date upon which a permit is issued by the local\ndepartment of buildings for alterations that require the issuance of a\nnew certificate of occupancy, provided that such alterations constitute\nan eligible conversion.\n i. "Completion date" shall mean the date upon which the local\ndepartment of buildings issues the first temporary or permanent\ncertificate of occupancy covering all residential areas of an eligible\nmultiple dwelling.\n j. "Construction period" shall mean, with respect to any eligible\nmultiple dwelling, a period: (i) beginning on the later of the\ncommencement date or three years before the completion date; and (ii)\nending on the day preceding the completion date.\n k. "Dwelling" or "dwellings" shall have the same meaning as set forth\nin subdivision four of section four of the multiple dwelling law.\n l. "Eligible conversion" shall mean the conversion of a\nnon-residential building, except a hotel or other class B multiple\ndwelling, to an eligible multiple dwelling.\n m. "Eligible multiple dwelling" shall mean a multiple dwelling which\nwas subject to an eligible conversion in which: (i) all dwelling units\nincluded in any application are operated as rental housing; (ii) six or\nmore dwelling units have been created through an eligible conversion;\n(iii) the commencement date is after December thirty-first, two thousand\ntwenty-two and on or before June thirtieth, two thousand thirty-one; and\n(iv) the completion date is on or before December thirty-first, two\nthousand thirty-nine.\n n. "Fiscal officer" shall mean the comptroller or other analogous\nofficer in a city having a population of one million or more.\n o. "Floor area" shall mean the horizontal areas of the several floors,\nor any portion thereof, of a dwelling or dwellings, and accessory\nstructures on a lot measured from the exterior faces of exterior walls,\nor from the center line of party walls.\n p. "Income band" shall mean a percentage of the area median income,\nadjusted for family size, that is a multiple of ten percent.\n q. "Manhattan prime development area" shall mean any tax lot now\nexisting or hereafter created which is located entirely south of 96th\nstreet in the borough of Manhattan.\n r. "Market unit" shall mean a dwelling unit in an eligible multiple\ndwelling other than an affordable housing unit.\n s. "Marketing band" shall mean maximum rent amounts ranging from\ntwenty percent to thirty percent of the area median income or income\nband, respectively, that is applicable to a specific affordable housing\nunit.\n t. "Multiple dwelling" shall have the same meaning as set forth in\nsubdivision seven of section four of the multiple dwelling law.\n u. "Non-residential building" shall mean a structure or portion of a\nstructure, except a hotel or other class B multiple dwelling, having at\nleast one floor, a roof and at least three walls enclosing all or most\nof the space used in connection with the structure or portion of the\nstructure, which has a certificate of occupancy for commercial,\nmanufacturing or other non-residential use for not less than ninety\npercent of the aggregate floor area of such structure or portion of such\nstructure, or other proof of such non-residential use as is acceptable\nto the agency.\n v. "Non-residential tax lot" shall mean a tax lot that does not\ncontain any dwelling units.\n w. "Rent stabilization" shall mean, collectively, the rent\nstabilization law of nineteen hundred sixty-nine, the rent stabilization\ncode, and the emergency tenant protection act of nineteen seventy-four,\nall as in effect as of the effective date of this section or as amended\nthereafter, together with any successor statutes or regulations\naddressing substantially the same subject matter.\n x. "Residential tax lot" shall mean a tax lot that contains dwelling\nunits.\n y. "Restriction period" shall mean a period commencing on the\ncompletion date and extending in perpetuity, notwithstanding any earlier\ntermination or revocation of AHCC program benefits.\n z. "Thirty-five year benefit shall mean: (i) for the construction\nperiod, a one hundred percent exemption from real property taxation,\nother than assessments for local improvements; (ii) for the first thirty\nyears of the restriction period; (A) within the Manhattan prime\ndevelopment area, a ninety percent exemption from real property\ntaxation, other than assessments for local improvements; and (B) outside\nof the Manhattan prime development area, a sixty-five percent exemption\nfrom real property taxation, other than assessments for local\nimprovements; (iii) for the thirty-first year of the restriction period,\n(A) within the Manhattan prime development area, an eighty percent\nexemption from real property taxation, other than assessments for local\nimprovements; and (B) outside of the Manhattan prime development area, a\nfifty percent exemption from real property taxation, other than\nassessments for local improvements; (iv) for the thirty-second year of\nthe restriction period, (A) within the Manhattan prime development area,\na seventy percent exemption from real property taxation, other than\nassessments for local improvements; and (B) outside of the Manhattan\nprime development area, a forty percent exemption from real property\ntaxation, other than assessments for local improvements; (v) for the\nthirty-third year of the restriction period, (A) within the Manhattan\nprime development area, a sixty percent exemption from real property\ntaxation, other than assessments for local improvements; and (B) outside\nof the Manhattan prime development area, a thirty percent exemption from\nreal property taxation, other than assessments for local improvements;\n(vi) for the thirty-fourth year of the restriction period; (A) within\nthe Manhattan prime development area, a fifty percent exemption from\nreal property taxation, other than assessments for local improvements;\nand (B) outside of the Manhattan prime development area, a twenty\npercent exemption from real property taxation, other than assessments\nfor local improvements; and (vii) for the thirty-fifth year of the\nrestriction period, (A) within the Manhattan prime development area, a\nforty percent exemption from real property taxation, other than\nassessments for local improvements; and (B) outside of the Manhattan\nprime development area, a ten percent exemption from real property\ntaxation, other than assessments for local improvements.\n aa. "Thirty year benefit" shall mean: (i) for the construction period,\na one hundred percent exemption from real property taxation, other than\nassessments for local improvements; (ii) for the first twenty-five years\nof the restriction period, (A) within the Manhattan prime development\narea, a ninety percent exemption from real property taxation, other than\nassessments for local improvements; and (B) outside of the Manhattan\nprime development area, a sixty-five percent exemption from real\nproperty taxation, other than assessments for local improvements; (iii)\nfor the twenty-sixth year of the restriction period, (A) within the\nManhattan prime development area, an eighty percent exemption from real\nproperty taxation, other than assessments for local improvements; and\n(B) outside of the Manhattan prime development area, a fifty percent\nexemption from real property taxation, other than assessments for local\nimprovements; (iv) for the twenty-seventh year of the restriction\nperiod, (A) within the Manhattan prime development area, a seventy\npercent exemption from real property taxation, other than assessments\nfor local improvements; and (B) outside of the Manhattan prime\ndevelopment area, a forty percent exemption from real property taxation,\nother than assessments for local improvements; (v) for the twenty-eighth\nyear of the restriction period, (A) within the Manhattan prime\ndevelopment area, a sixty percent exemption from real property taxation,\nother than assessments for local improvements; and (B) outside of the\nManhattan prime development area, a thirty percent exemption from real\nproperty taxation, other than assessments for local improvements; (vi)\nfor the twenty-ninth year of the restriction period, (A) within the\nManhattan prime development area, a fifty percent exemption from real\nproperty taxation, other than assessments for local improvements; and\n(B) outside of the Manhattan prime development area, a twenty percent\nexemption from real property taxation, other than assessments for local\nimprovements; and (vii) for the thirtieth year of the restriction\nperiod, (A) within the Manhattan prime development area, a forty percent\nexemption from real property taxation, other than assessments for local\nimprovements; and (B) outside of the Manhattan prime development area, a\nten percent exemption from real property taxation, other than\nassessments for local improvements.\n bb. "Twenty-five year benefit" shall mean: (i) for the construction\nperiod, a one hundred percent exemption from real property taxation,\nother than assessments for local improvements; (ii) for the first twenty\nyears of the restriction period; (A) within the Manhattan prime\ndevelopment area, a ninety percent exemption from real property\ntaxation, other than assessments for local improvements; and (B) outside\nof the Manhattan prime development area, a sixty-five percent exemption\nfrom real property taxation, other than assessments for local\nimprovements; (iii) for the twenty-first year of the restriction period,\n(A) within the Manhattan prime development area, an eighty percent\nexemption from real property taxation, other than assessments for local\nimprovements; and (B) outside of the Manhattan prime development area, a\nfifty percent exemption from real property taxation, other than\nassessments for local improvements; (iv) for the twenty-second year of\nthe restriction period, (A) within the Manhattan prime development area,\na seventy percent exemption from real property taxation, other than\nassessments for local improvements; and (B) outside of the Manhattan\nprime development area, a forty percent exemption from real property\ntaxation, other than assessments for local improvements; (v) for the\ntwenty-third year of the restriction period, (A) within the Manhattan\nprime development area, a sixty percent exemption from real property\ntaxation, other than assessments for local improvements; and (B) outside\nof the Manhattan prime development area, a thirty percent exemption from\nreal property taxation, other than assessments for local improvements;\n(vi) for the twenty-fourth year of the restriction period, (A) within\nthe Manhattan prime development area, a fifty percent exemption from\nreal property taxation, other than assessments for local improvements;\nand (B) outside of the Manhattan prime development area, a twenty\npercent exemption from real property taxation, other than assessments\nfor local improvements; and (vii) for the twenty-fifth year of the\nrestriction period, (A) within the Manhattan prime development area, a\nforty percent exemption from real property taxation, other than\nassessments for local improvements; and (B) outside of the Manhattan\nprime development area, a ten percent exemption from real property\ntaxation, other than assessments for local improvements.\n 2. Benefit. In cities having a population of one million or more,\nnotwithstanding the provisions of any other general, special or local\nlaw to the contrary, a new eligible multiple dwelling, except a hotel,\nthat complies with the provisions of this section shall be exempt from\nreal property taxation, other than assessments for local improvements,\nin the amounts and for the periods specified in this section, provided\nthat such eligible multiple dwelling is used or held out for use for\ndwelling purposes. An eligible multiple dwelling that has a commencement\ndate on or before June thirtieth, two thousand twenty-six shall receive\na thirty-five year benefit; an eligible multiple dwelling that has a\ncommencement date on or before June thirtieth, two thousand twenty-eight\nshall receive a thirty year benefit; and an eligible multiple dwelling\nthat has a commencement date on or before June thirtieth, two thousand\nthirty-one shall receive a twenty-five year benefit.\n 3. Tax payments. In addition to any other amounts payable pursuant to\nthis section, the owner of any eligible multiple dwelling receiving AHCC\nprogram benefits shall pay, in each tax year in which such AHCC program\nbenefits are in effect, all assessments for local improvements.\n 4. Limitation on benefits for non-residential space. If the aggregate\nfloor area of commercial, community facility and accessory use space in\nan eligible multiple dwelling exceeds twelve percent of the aggregate\nfloor area in such eligible multiple dwelling, any AHCC program benefits\nshall be reduced by a percentage equal to such excess. If an eligible\nmultiple dwelling contains multiple tax lots, the tax arising out of\nsuch reduction in AHCC program benefits shall first be apportioned pro\nrata among any non-residential tax lots. After any such non-residential\ntax lots are fully taxable, the remainder of the tax arising out of such\nreduction in AHCC program benefits, if any, shall be apportioned pro\nrata among the remaining residential tax lots. For the purposes of this\nsection, accessory use space shall not include home occupation space or\naccessory parking space located not more than twenty-three feet above\nthe curb level.\n 5. Application of benefit. Based on the certification of the agency\ncertifying eligibility for AHCC program benefits, the department of\nfinance shall determine the amount of the exemption pursuant to\nsubdivisions two and four of this section and shall apply the exemption\nto the assessed value of the eligible multiple dwelling.\n 6. Affordability requirements. An eligible multiple dwelling shall\ncomply with the affordability requirement defined in paragraph b of\nsubdivision one of this section during the restriction period. An\neligible multiple dwelling shall also comply with the following\nrequirements during the restriction period:\n a. All affordable housing units in an eligible multiple dwelling shall\nshare the same common entrances and common areas as rental market rate\nunits in such eligible multiple dwelling and shall not be isolated to a\nspecific floor or area of an eligible multiple dwelling. Common\nentrances shall mean any means of ingress or egress regularly used by\nany resident of a rental dwelling unit in the eligible multiple\ndwelling.\n b. Unless preempted by the requirements of a federal, state or local\nhousing program, either: (i) the affordable housing units in an eligible\nmultiple dwelling shall have a unit mix proportional to the rental\nmarket units; or (ii) at least fifty percent of the affordable housing\nunits in an eligible multiple dwelling shall have two or more bedrooms\nand no more than twenty-five percent of the affordable housing units\nshall have less than one bedroom.\n c. Notwithstanding any provision of rent stabilization to the\ncontrary: (i) all affordable housing units shall remain fully subject\nto rent stabilization during the restriction period; and (ii) any\naffordable housing unit occupied by a tenant that has been approved by\nthe agency prior to the agency's denial of an eligible multiple\ndwelling's application for AHCC program benefits shall remain subject to\nrent stabilization until such tenant vacates such affordable housing\nunit.\n d. All rent stabilization registrations required to be filed shall\ncontain a designation that specifically identifies affordable housing\nunits created pursuant to this section as "AHCC program affordable\nhousing units" and shall contain an explanation of the requirements that\napply to all such affordable housing units.\n e. Failure to comply with the provisions of this subdivision that\nrequire the creation, maintenance, rent stabilization compliance, and\noccupancy of affordable housing units shall result in revocation of AHCC\nprogram benefits.\n f. Nothing in this section shall: (i) prohibit the occupancy of an\naffordable housing unit by individuals or families whose income at any\ntime is less than the maximum percentage of the area median income or\nincome band, as applicable, adjusted for family size, specified for such\naffordable housing unit pursuant to this section; or (ii) prohibit the\nowner of an eligible multiple dwelling from requiring, upon initial\nrental or upon any rental following a vacancy, the occupancy of any\naffordable housing unit by such lower income individuals or families.\n g. Following issuance of a temporary certificate of occupancy and upon\neach vacancy thereafter, an affordable housing unit shall promptly be\noffered for rental by individuals or families whose income does not\nexceed the maximum percentage of the area median income or income band,\nas applicable, adjusted for family size, specified for such affordable\nhousing unit pursuant to this section and who intend to occupy such\naffordable housing unit as their primary residence. An affordable\nhousing unit shall not be: (i) rented to a corporation, partnership or\nother entity; or (ii) held off the market for a period longer than is\nreasonably necessary to perform repairs needed to make such affordable\nhousing unit available for occupancy.\n h. An affordable housing unit shall not be rented on a temporary,\ntransient or short-term basis. Every lease and renewal thereof for an\naffordable housing unit shall be for a term of one or two years, at the\noption of the tenant.\n i. An affordable housing unit shall not be converted to cooperative or\ncondominium ownership.\n j. The agency may establish by rule such requirements as the agency\ndeems necessary or appropriate for: (i) the marketing of affordable\nhousing units, both upon initial occupancy and upon any vacancy; (ii)\nmonitoring compliance with the provisions of this subdivision; (iii) the\nestablishment of marketing bands for affordable housing units;\n (iv) identifying the permit or permits required for the determination\nof the commencement date under this section; and\n (v) specifying the legal instrument by which the marketing,\naffordability, rent stabilization, permitted rent, and any other\nrequirement associated with this benefit will be recorded and enforced.\nSuch requirements may include, but need not be limited to, retaining a\nmonitor approved by the agency and paid for by the owner of the eligible\nmultiple dwelling.\n k. Notwithstanding any provision of this section to the contrary, a\nmarket unit shall not be subject to rent stabilization unless, in the\nabsence of AHCC program benefits, the unit would be subject to rent\nstabilization.\n 7. Building service employees. a. For the purposes of this\nsubdivision, (i) "applicant" shall mean an applicant for AHCC program\nbenefits and/or any successor to such applicant; and (ii) "covered\nbuilding service employer" shall mean any applicant and/or any employer\nof building service employees for such applicant including, but not\nlimited to, a property management company or contractor.\n b. All building service employees employed by the covered building\nservice employer at the eligible multiple dwelling shall receive the\napplicable prevailing wage for the duration of the benefit period,\nregardless of whether such benefits provided pursuant to this section\nare revoked or terminated.\n c. The fiscal officer shall have the power to enforce the provisions\nof this subdivision. In enforcing such provisions, the fiscal officer\nshall have the power: (i) to investigate or cause an investigation to be\nmade to determine the prevailing wages for building service employees,\nand in making such investigation, the fiscal officer may utilize wage\nand fringe benefit data from various sources, including, but not limited\nto, data and determinations of federal, state or other governmental\nagencies; provided, however, that the provision of a dwelling unit shall\nnot be considered wages or a fringe benefit; (ii) to institute and\nconduct inspections at the site of the work or elsewhere; (iii) to\nexamine the books, documents and records pertaining to the wages paid\nto, and the hours of work performed by, building service employees; (iv)\nto hold hearings and, in connection therewith, to issue subpoenas, the\nenforcement of which shall be regulated by the civil practice law and\nrules, administer oaths and examine witnesses; (v) to make a\nclassification 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; (vi) 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; (vii) to delegate any of\nthe foregoing powers to his or her deputy or other authorized\nrepresentative; (viii) to promulgate rules as he or she shall consider\nnecessary for the proper execution of the duties, responsibilities and\npowers conferred upon him or her by the provisions of this subdivision;\nand (ix) to prescribe appropriate sanctions for failure to comply with\nthe provisions of this subdivision. For each violation of paragraph b of\nthis subdivision, the fiscal officer may require the payment of (A) back\nwages and fringe benefits; (B) liquidated damages up to three times the\namount of the back wages and fringe benefits for willful violations;\nand/or (C) reasonable attorneys' fees. If the fiscal officer finds that\nthe applicant has failed to comply with the provisions of this\nsubdivision, he or she shall present evidence of such non-compliance to\nthe agency.\n d. Paragraph b of this subdivision shall not be applicable to: (i) an\neligible multiple dwelling containing less than thirty dwelling units;\nor (ii) an eligible multiple dwelling whose eligible conversion is\ncarried out with the substantial assistance of grants, loans or\nsubsidies provided by a federal, state or local governmental agency or\ninstrumentality pursuant to a program for the development of affordable\nhousing.\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 agency's approval 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 agency shall annually publish a list of all eligible sites\nsubject to the requirements of this subdivision and the affidavits\nrequired pursuant to paragraph 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 agency may revoke any benefits associated with such eligible\nmultiple dwelling under this section. For purposes of this paragraph, a\n"violation" of paragraph (b) of this subdivision shall 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 8. Concurrent exemptions or abatements. An eligible multiple dwelling\nreceiving AHCC program benefits shall not receive any exemption from or\nabatement of real property taxation under any other law.\n 9. Voluntary renunciation or termination. Notwithstanding the\nprovisions of any general, special or local law to the contrary, an\nowner shall not be entitled to voluntarily renounce or terminate AHCC\nprogram benefits unless the agency authorizes such renunciation or\ntermination in connection with the commencement of a tax exemption\npursuant to the private housing finance law or section four hundred\ntwenty-c of this title.\n 10. Termination or revocation. The agency may terminate or revoke AHCC\nprogram benefits for failure to comply with this section. 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 11. Powers cumulative. The enforcement provisions of this section\nshall not be exclusive, and are in addition to any other rights,\nremedies or enforcement powers set forth in any other law or available\nat law or in equity.\n 12. Multiple tax lots. If an eligible multiple dwelling contains\nmultiple tax lots, an application may be submitted with respect to one\nor more of such tax lots. The agency shall determine eligibility for\nAHCC program benefits based upon the tax lots included in such\napplication and benefits for each such eligible multiple dwelling shall\nbe based upon the completion date of each such multiple dwelling.\n 13. Applications. a. The application with respect to any eligible\nmultiple dwelling shall be filed with the agency no earlier than the\ncompletion date and not later than one year after the completion date of\nsuch eligible multiple dwelling.\n b. Notwithstanding the provisions of any general, special, or local\nlaw to the contrary, the agency may require by rule that applications be\nfiled electronically.\n c. The agency may rely on certification by an architect or engineer\nsubmitted by an applicant in connection with the filing of an\napplication. A false certification by such architect or engineer shall\nbe deemed to be professional misconduct pursuant to section sixty-five\nhundred nine of the education law. Any architect or engineer found\nguilty of such misconduct under the procedures prescribed in section\nsixty-five hundred ten of the education law shall be subject to the\npenalties prescribed in section sixty-five hundred eleven of the\neducation law and shall thereafter be ineligible to submit a\ncertification pursuant to this section.\n d. Such application shall also certify that all taxes, water charges,\nand sewer rents currently due and owing on the property which is the\nsubject of the application have been paid or are currently being paid in\ntimely installments pursuant to a written agreement with the department\nof finance or other appropriate agency.\n 14. Filing fee. The agency may require a filing fee of no less than\nthree thousand dollars per dwelling unit in connection with any\napplication, except that the agency may promulgate rules:\n a. imposing a lesser fee for an eligible multiple dwelling whose\neligible conversion is carried out with the substantial assistance of\ngrants, loans or subsidies provided by a federal, state or local\ngovernmental agency or instrumentality pursuant to a program for the\ndevelopment of affordable housing; and\n b. requiring a portion of the filing fee to be paid upon the\nsubmission of the information the agency requires in advance of\napproving the commencement of the marketing process for such eligible\nconversion.\n 15. Multiple residence. A non-residential building undergoing an\neligible conversion shall be considered a multiple residence during the\nconstruction period.\n 16. Rules. Except as provided in subdivision seven of this section,\nthe agency shall have the sole authority to enforce the provisions of\nthis section and may promulgate rules to carry out the provisions of\nthis section.\n 17. Penalties for violations of affordability requirements. a. On or\nafter the expiration date of the benefit provided pursuant to this\nsection, the agency may impose, after notice and an opportunity to be\nheard, a penalty for any violation by an eligible multiple dwelling of\nthe affordability requirements of subdivision six of this section.\n b. A penalty imposed under this subdivision shall be computed as a\npercentage of the capitalized value of all AHCC program benefits on the\neligible multiple dwelling, calculated as of the first year that\nbenefits were granted, not to exceed one thousand percent. The agency\nshall establish a schedule and method of calculation of such penalties\npursuant to subdivision sixteen of this section.\n c. A penalty imposed under this subdivision shall be imposed against\nthe owner of the eligible multiple dwelling at the time the violation\noccurred, even if such owner no longer owns such eligible multiple\ndwelling at the time of the agency's determination.\n d. A person or entity who fails to pay a penalty imposed pursuant to\nthis subdivision shall be guilty of a misdemeanor punishable by\nimprisonment not to exceed six months.\n