§ 485-X — Affordable neighborhoods for New Yorkers tax incentive

New York § 485-X

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

Text

§ 485-x. Affordable neighborhoods for New Yorkers tax incentive. 1.\nDefinitions. For purposes of this section:\n (a) "Affordability option A" shall mean:\n (i) for a large rental project, that, within any eligible site: (A)\nnot less than twenty-five percent of the dwelling units are affordable\nhousing units; (B) the weighted average of all income bands for all of\nthe affordable housing units does not exceed eighty percent of the area\nmedian income, adjusted for family size; (C) there are no more than\nthree income bands for all of the affordable housing units; and (D) no\nincome band for affordable housing units exceeds one hundred percent of\nthe area median income, adjusted for family size;\n (ii) for a very large rental project, that, within any eligible site:\n(A) not less than twenty-five percent of the dwelling units are\naffordable housing units; (B) the weighted average of all income bands\nfor all of the affordable housing units does not exceed sixty percent of\nthe area median income, adjusted for family size; (C) there are no more\nthan three income bands for all of the affordable housing units; and (D)\nno income band for affordable housing units exceeds one hundred percent\nof the area median income, adjusted for family size.\n (b) "Affordability option B" shall mean that, within any eligible\nsite: (i) not less than twenty percent of the dwelling units are\naffordable housing units; (ii) the weighted average of all income bands\nfor all of the affordable housing units does not exceed eighty percent\nof the area median income, adjusted for family size; (iii) there are no\nmore than three income bands for all of the affordable housing units;\nand (iv) no income band for affordable housing units exceeds one hundred\npercent of the area median income, adjusted for family size.\n (c) "Affordability option C" shall mean that, within any eligible\nsite, not less than fifty percent of the dwelling units are subject to\nrent stabilization for the restriction period.\n (d) "Affordability option D" shall mean a homeownership project in\nwhich one hundred percent of the units shall have an average assessed\nvalue per square foot that does not exceed eighty-nine dollars upon the\nfirst assessment following the completion date and where each owner of\nany such unit shall agree, in writing, to maintain such unit as their\nprimary residence for no less than five years from the acquisition of\nsuch unit.\n (e) "Affordability percentage" shall mean a fraction, the numerator of\nwhich is the number of affordable housing units in an eligible site and\nthe denominator of which is the total number of dwelling units in such\neligible site.\n (f) "Affordable neighborhoods for New Yorkers tax incentive benefits\n(hereinafter referred to as "ANNY Program benefits")" shall mean the\nexemption from real property taxation pursuant to this section.\n (g) "Affordable housing unit" shall mean a dwelling unit that: (i) is\nsituated within the eligible site for which ANNY Program benefits are\ngranted; and (ii) upon initial rental and upon each subsequent rental\nfollowing a vacancy during the applicable restriction period, is\naffordable to and restricted to occupancy by a household whose income\ndoes not exceed a prescribed percentage of the area median income,\nadjusted for family size, at the time that such household initially\noccupies such dwelling unit.\n (h) "Agency" shall mean the department of housing preservation and\ndevelopment.\n (i) "Application" shall mean an application for ANNY Program benefits.\n (j) "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 site, including, but not limited to, a\nwatchperson, guard, doorperson, building cleaner, porter, handyperson,\njanitor, gardener, groundskeeper, elevator operator and starter, and\nwindow cleaner, but not including persons regularly scheduled to work\nfewer than eight hours per week at the eligible site.\n (k) "Collective bargaining agreement" shall mean an agreement entered\ninto pursuant to section eight-f or section nine-a of the National Labor\nRelations Act (29 U.S.C. Sections 159(a) and 158(f)) between a\ncontractor or subcontractor and a labor organization setting forth terms\nand conditions of employment for those construction employees\nrepresented by the labor organization and employed by the contractor or\nsubcontractor to perform construction work on an eligible site.\n (l) "Commencement date" shall mean, with respect to any eligible\nmultiple dwelling, the date upon which excavation and construction of\ninitial footings and foundations lawfully begins in good faith or, for\nan eligible conversion, the date upon which the actual construction of\nthe conversion, alteration or improvement of the pre-existing building\nor structure lawfully begins in good faith.\n (m) "Completion date" shall mean, with respect to any eligible\nmultiple dwelling, the date upon which the local department of buildings\nissues the first temporary or permanent certificate of occupancy\ncovering all residential areas of an eligible multiple dwelling.\n (n) "Construction employee" shall mean any person performing\nconstruction work who is a laborer, worker, or mechanic.\n (o) "Construction period" shall mean, with respect to any eligible\nmultiple dwelling, a period: (i) beginning on the later of the\ncommencement date of such eligible multiple dwelling or three years\nbefore the completion date of such eligible multiple dwelling; and (ii)\nending on the day preceding the completion date of such eligible\nmultiple dwelling.\n (p) "Construction work" shall mean the provision of labor performed on\nan eligible site between the commencement date and the completion date,\nwhereby materials and constituent parts are combined to initially form,\nmake or build an eligible multiple dwelling, including without\nlimitation, painting, or providing of material, articles, supplies or\nequipment in the eligible multiple dwelling, but excluding security\npersonnel and work related to the fit-out of commercial spaces.\n (q) "Eligible conversion" shall mean the conversion, alteration or\nimprovement of a pre-existing building or structure resulting in a\nmultiple dwelling in which no more than forty-nine percent of the floor\narea consists of such pre-existing building or structure.\n (r) "Eligible multiple dwelling" shall mean a multiple dwelling or\nhomeownership project containing six or more dwelling units created\nthrough new construction or eligible conversion for which the\ncommencement date is after June fifteenth, two thousand twenty-two and\non or before June fifteenth, two thousand thirty-four and the completion\ndate is on or before June fifteenth, two thousand thirty-eight.\n (s) "Eligible site" shall mean either: (i) a tax lot containing an\neligible multiple dwelling; or (ii) a zoning lot containing two or more\neligible multiple dwellings that are part of a single application.\n (t) "Employee benefits" shall mean all supplemental compensation paid\nby the employer, on behalf of construction employees, other than wages,\nincluding, without limitation, any premiums or contributions made into\nplans or funds that provide health, welfare, non-occupational disability\ncoverage, retirement, vacation benefits, holiday pay, life insurance and\napprenticeship training. The value of any employee benefits received\nshall be determined based on the prorated hourly cost to the employer of\nthe employee benefits received by construction employees.\n (u) "Extended construction period" shall mean, with respect to any\nvery large rental project located in Zone A, a period: (i) beginning on\nthe later of the commencement date of such eligible multiple dwelling or\nfive years before the completion date of such eligible multiple\ndwelling; and (ii) ending on the day preceding the completion date of\nsuch eligible multiple dwelling.\n (v) "Fiscal officer" shall mean the comptroller or other analogous\nofficer in a city having a population of one million or more.\n (w) "Floor area" shall mean the horizontal areas of the several\nfloors, or any portion thereof, of a dwelling or dwellings, and\naccessory structures on a lot measured from the exterior faces of\nexterior walls, or from the center line of party walls.\n (x) "Forty year benefit" shall mean: (i) for the construction period\nor extended construction period, as applicable, a one hundred percent\nexemption from real property taxation, other than assessments for local\nimprovements; and (ii) for the first forty years of the restriction\nperiod, a one hundred percent exemption from real property taxation,\nother than assessments for local improvements.\n (y) "Homeownership project" shall mean a multiple dwelling operated as\ncondominium or cooperative housing; however, it shall not include a\nmultiple dwelling or portion thereof operated as condominium or\ncooperative housing located within the borough of Manhattan.\n (z) "Hourly wage" shall mean the amount equal to the aggregate amount\nof wages and employee benefits paid to, or on behalf of, a construction\nemployee for each hour of construction work.\n (aa) "Jobsite agreement" shall mean a collective bargaining agreement\nthat only sets forth terms and conditions of employment for construction\nemployees performing construction work under the agreement at one\nspecific eligible site.\n (bb) "Large rental project" shall mean an eligible site consisting of\none hundred or more residential dwelling units in which all dwelling\nunits included in any application are operated as rental housing.\n (cc) "Market unit" shall mean a dwelling unit in an eligible multiple\ndwelling other than a restricted unit.\n (dd) "Marketing band" shall mean maximum rent ranging from twenty\npercent to thirty percent of the area median income applicable to a\nspecific affordable housing unit.\n (ee) "Modest rental project" shall mean an eligible site consisting of\nmore than five and less than one hundred residential dwelling units in\nwhich all dwelling units included in any application are operated as\nrental housing, other than a small rental project.\n (ff) "Multiple dwelling" shall have the same meaning set forth in\nsubdivision seven of section four of the multiple dwelling law.\n (gg) "Neighborhood tabulation area" shall mean a geographical area\ndefined by the department of city planning for the purposes of providing\nneighborhood-level data.\n (hh) "Non-residential tax lot" shall mean a tax lot that does not\ncontain any dwelling units.\n (ii) "Project labor agreement" shall mean a pre-hire collective\nbargaining agreement between a contractor and a bona fide building and\nconstruction trade labor organization establishing the labor\norganization as the collective bargaining representative for all persons\nwho will perform construction work on an eligible site, and which\nprovides that only contractors and subcontractors who sign a\npre-negotiated agreement with the labor organization can perform\nconstruction work on an eligible site.\n (jj) "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 the chapter of the laws of\ntwo thousand twenty-four that added this section or as amended\nthereafter, together with any successor statutes or regulations\naddressing substantially the same subject matter.\n (kk) "Rental project" shall mean, collectively, a very large rental\nproject, large rental project, modest rental project, and small rental\nproject.\n (ll) "Residential tax lot" shall mean a tax lot that contains dwelling\nunits.\n (mm) "Restricted unit" shall mean, individually and collectively: (i)\naffordable housing units; and (ii) dwelling units that are subject to\nrent stabilization in accordance with affordability option C.\n (nn) "Restriction period" shall mean, notwithstanding any earlier\ntermination or revocation of affordable citywide construction program\nbenefits: (i) with respect to a rental project, a period commencing on\nthe completion date and extending in perpetuity; and (ii) with respect\nto a homeownership project, a period commencing on the completion date\nand expiring on the twentieth anniversary of the completion date.\n (oo) "Small rental project" shall mean an eligible site consisting of\nmore than five and less than eleven residential dwelling units, located\noutside the borough of Manhattan on a zoning lot that permits a\nresidential floor area not exceeding twelve-thousand five hundred square\nfeet, in which all dwelling units included in any application are\noperated as rental housing and that elects to comply with affordability\noption C.\n (pp) "Ten year benefit" shall mean: (i) for the construction period, a\none hundred percent exemption from real property taxation, other than\nassessments for local improvements; (ii) for the first ten years of the\nrestriction period, a one hundred percent exemption from real property\ntaxation, other than assessments for local improvements.\n (qq) "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\ntwenty-five years of the restriction period, a one hundred percent\nexemption from real property taxation, other than assessments for local\nimprovements; and (iii) for the ten years of the restriction period\nsubsequent to such twenty-five years, (A) with respect to modest rental\nprojects, an exemption from real property taxation, other than\nassessments for local improvements, equal to the affordability\npercentage, and (B) with respect to large rental projects, a one hundred\npercent exemption from real property taxation, other than assessments\nfor local improvements.\n (rr) "Twenty 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\nfourteen years of the restriction period, a one hundred percent\nexemption from real property taxation, other than assessments for local\nimprovements, provided, however, that no exemption shall be given for\nany portion of the square footage of a unit with an assessed value that\nexceeds eighty-nine dollars per square foot; and (iii) for the final six\nyears of the restriction period, a twenty-five percent exemption from\nreal property taxation, other than assessments for local improvements,\nprovided, however, that no exemption shall be given for any portion of\nthe square footage of a unit with an assessed value that exceeds\neighty-nine dollars per square foot.\n (ss) "Very large rental project" shall mean an eligible site located\nin Zone A or Zone B consisting of one hundred fifty or more residential\ndwelling units in which all dwelling units included in any application\nare operated as rental housing.\n (tt) "Wages" shall mean all compensation, remuneration or payments of\nany kind paid to, or on behalf of, construction employees, including,\nwithout limitation, any hourly compensation paid directly to the\nconstruction employee, together with employee benefits, such as health,\nwelfare, non-occupational disability coverage, retirement, vacation\nbenefits, holiday pay, life insurance and apprenticeship training, and\npayroll taxes, including, to the extent permissible by law, all amounts\npaid for New York state unemployment insurance, New York state\ndisability insurance, metropolitan commuter transportation mobility tax,\nfederal unemployment insurance and pursuant to the federal insurance\ncontributions act or any other payroll tax that is paid by the employer.\n (uu) "Zone A" shall mean any tax lot now existing or hereafter created\nwhich is located entirely south of 96th street in the borough of\nManhattan or in any of the following neighborhood tabulation areas as\nmost recently defined by the department of New York City planning:\nBrooklyn 0101, Brooklyn 0102, Brooklyn 0103, Brooklyn 0104, and Queens\n0201.\n (vv) "Zone B" shall mean any tax lot now existing or hereafter created\nwhich is located entirely in any of the following neighborhood\ntabulation areas as most recently defined by the department of New York\nCity planning: Brooklyn 0201, Brooklyn 0202, Brooklyn 0203, Brooklyn\n0204, Brooklyn 0601, Brooklyn 0602, Brooklyn 0801, Queens 0105, and\nQueens 0102.\n 2. Benefit. In cities having a population of one million or more,\nnotwithstanding the provisions of any general, special or local law to\nthe contrary, new eligible multiple dwellings, except hotels, that\ncomply with the provisions of this section shall be exempt from real\nproperty taxation, other than assessments for local improvements, in the\namounts and for the periods specified as follows:\n (a) a small rental project that complies with all of the requirements\nof this subdivision shall receive a ten year benefit;\n (b) a modest rental project that complies with all of the requirements\nof this subdivision shall receive a thirty-five year benefit;\n (c) a large rental project that complies with all of the requirements\nof this subdivision shall receive a thirty-five year benefit;\n (d) a very large rental project that complies with all of the\nrequirements of this subdivision shall receive a forty year benefit; and\n (e) a homeownership project that complies with all of the requirements\nof this subdivision shall receive a twenty year benefit.\n 3. Construction work requirements. In addition to all other\nrequirements set forth in this section, any eligible site containing one\nhundred or more dwelling units within the city of New York shall comply\nwith the requirements set forth in this subdivision except as otherwise\nprovided in any paragraph of this subdivision.\n (a) Construction work on any eligible site containing one hundred\nunits or more shall be subject to requirements in accordance with\nsections two hundred twenty and two hundred twenty-b of the labor law;\nprovided, however, that the minimum hourly rate of wages and supplements\nrequired to be paid to construction employees shall be forty dollars,\nwhich shall increase by two and one-half percent on the first day of\nJuly in the year two thousand twenty-five and by two and one-half\npercent on the first day of July in each year thereafter.\n (b) Construction work on any eligible site containing one hundred\nfifty units or more, within Zone A, shall be subject to requirements in\naccordance with sections two hundred twenty and two hundred twenty-b of\nthe labor law; provided, however, that the minimum hourly rate of wages\nand supplements required to be paid to construction employees shall be\nthe lesser of seventy-two dollars and forty-five cents, which shall\nincrease by two and one-half percent on the first day of July in the\nyear two thousand twenty-five and by two and one-half percent on the\nfirst day of July in each year thereafter, or sixty-five percent of the\ngreatest prevailing rate of wages and supplements within a\nclassification.\n (c) Construction work on any eligible site containing one hundred\nfifty units or more, within Zone B, shall be subject to requirements in\naccordance with sections two hundred twenty and two hundred twenty-b of\nthe labor law; provided, however, that the minimum hourly rate of wages\nand supplements required to be paid to construction employees shall be\nthe lesser of sixty-three dollars, which shall increase by two and\none-half percent on the first day of July in the year two thousand\ntwenty-five and by two and one-half percent on the first day of July in\neach year thereafter, or sixty percent of the greatest prevailing rate\nof wages and supplements within a classification.\n (d) The owner of an eligible site shall be responsible for notifying\nthe fiscal officer and the agency at least three months prior to the\ncommencement of construction work of the location of the project, the\nanticipated construction start date, the anticipated construction end\ndate, and the existence of any project labor agreement on the eligible\nsite. Failure to provide such notice in the time and manner required\nshall subject the owner to fines and penalties not to exceed\nfive-thousand dollars per day. In addition to the fines and penalties\nset forth herein, an owner shall forfeit the tax abatements and\nexemptions provided under this section if construction commences prior\nto providing the notice required under this section.\n (e) The owner of an eligible site shall be responsible for retaining\noriginal payroll records in accordance with section two hundred twenty\nof the labor law, as modified by paragraph (a) of this subdivision, for\na period of six years from the completion date. All payroll records\nmaintained by an owner pursuant to this subdivision shall be subject to\ninspection on request of the fiscal officer. Such owner may authorize\nthe prime contractor on the eligible site to take responsibility for\nretaining and maintaining payroll records, but will be held jointly and\nseverally liable for any violations of such contractor. All records\nobtained by the fiscal officer shall be subject to the freedom of\ninformation law.\n (f) The fiscal officer may issue rules and regulations governing the\nprovisions of this subdivision. Violations of this subdivision shall be\ngrounds for determinations and orders pursuant to section two hundred\ntwenty-b of the labor law.\n (g) Where a complaint is received pursuant to this subdivision, if the\nfiscal officer finds cause to believe that an applicant or any person\nacting on behalf of or as an agent of an applicant, in connection with\nthe performance of any contract for construction work pursuant to this\nsubdivision, has committed a violation of the provisions of this\nsubdivision, the fiscal officer may recapture tax abatements or\nexemptions provided pursuant to this section and/or terminate future tax\nabatements or exemptions made available pursuant to this section\npursuant to the following:\n (i) If an applicant or any person acting on behalf of or as an agent\nof an applicant, in connection with the performance of any contract for\nconstruction work pursuant to this subdivision, has committed three\nviolations of the requirements of paragraph (a), (b), or (c) of this\nsubdivision within a five-year period, the fiscal officer may recapture\ntax abatements or exemptions provided pursuant to this section and/or\nterminate future tax abatements or exemptions made available pursuant to\nthis section, provided, however, that after a second such violation, the\napplicant shall be notified that any further violation may result in the\nrecapture of tax abatements or exemptions provided pursuant to this\nsection and/or termination of future tax abatements or exemptions made\navailable pursuant to this section and that the fiscal officer shall\npublish on its website a list of all applicants with two violations as\ndefined in this paragraph.\n (ii) For purposes of this subdivision, a "violation" of paragraph (a),\n(b), or (c) of this subdivision shall be deemed a finding by the fiscal\nofficer that the applicant or any person acting on behalf of or as an\nagent of an applicant has failed to comply with paragraph (a), (b), or\n(c) of this subdivision and has failed to cure the deficiency within\nthree months of such finding.\n (iii) If the fiscal officer recaptures tax abatements or exemptions\nprovided pursuant to this section and/or terminates future tax\nabatements or exemptions made available pursuant to this section for\nnoncompliance with paragraph (a), (b), or (c) of this subdivision\npursuant to this paragraph: (a) all of the restricted units shall remain\nsubject to rent stabilization and all other requirements of this section\nfor the restriction period, and any additional period expressly provided\nin this section, as if the ANNY Program benefits had not been recaptured\nor terminated; or (b) for a homeownership project, such project shall\ncontinue to comply with affordability requirements set forth in this\nsection and all other requirements of this section for the restriction\nperiod and any additional period expressly provided in this section, as\nif the ANNY Program benefits had not been recaptured or terminated.\n (h) An eligible site shall be excluded from the requirements of\nparagraphs (a), (b), (c) and (d) of this subdivision where the\nperformance of all construction work on the eligible site is covered by\na project labor agreement.\n (i) A contractor and owner may be excluded from the requirements of\nparagraphs (a), (b), (c) and (d) of this subdivision with respect to\nonly those construction employees of the contractor that are performing\nconstruction work on the eligible site under a collective bargaining\nagreement or a jobsite agreement that has expressly waived the\nprovisions of paragraphs (a), (b), (c) and (d) of this subdivision.\n 4. In addition to all other requirements set forth in this section, an\neligible site must, over the course of the design and construction of\nsuch eligible site, make all reasonable efforts to spend on contracts\nwith minority and women owned business enterprises at least twenty-five\npercent of the total applicable costs, as such enterprises and costs are\ndefined in rules of the agency. Such rules shall set forth required\nmeasures with respect to contracts for design and construction that are\ncomparable, to the extent practicable, to the measures used by agencies\nof the city of New York to enhance minority and women owned business\nenterprise participation in agency contracts pursuant to applicable law,\nincluding section 6-129 of the administrative code of the city of New\nYork.\n 5. Tax payments. In addition to any other amounts payable pursuant to\nthis section, the owner of any eligible site receiving ANNY Program\nbenefits shall pay, in each tax year in which such ANNY Program benefits\nare in effect, real property taxes and assessments as follows:\n (a) with respect to each eligible multiple dwelling constructed on\nsuch eligible site, real property taxes on the assessed valuation of\nsuch land and any improvements thereon in effect during the tax year\nprior to the commencement date of such eligible multiple dwelling,\nwithout regard to any exemption from or abatement of real property\ntaxation in effect during such tax year, which real property taxes shall\nbe calculated using the tax rate in effect at the time such taxes are\ndue, provided, however, that this paragraph shall not apply to any very\nlarge rental project during the construction period or extended\nconstruction period, as applicable; and\n (b) all assessments for local improvements.\n 6. Limitation on benefits for non-residential space. If the aggregate\nfloor area of commercial, community facility and accessory use space in\nan eligible site, other than parking which is located not more than\ntwenty-three feet above the curb level, exceeds twelve percent of the\naggregate floor area in such eligible site, any ANNY Program benefits\nshall be reduced by a percentage equal to such excess. If an eligible\nsite contains multiple tax lots, the tax arising out of such reduction\nin ANNY Program benefits shall first be apportioned pro rata among any\nnon-residential tax lots. After any such non-residential tax lots are\nfully taxable, the remainder of the tax arising out of such reduction in\nANNY Program benefits, if any, shall be apportioned pro rata among the\nremaining residential tax lots.\n 7. Calculation of benefit. Based on the certification of the agency\ncertifying the applicant's eligibility for ANNY Program benefits, the\nassessors shall certify to the collecting officer the amount of taxes to\nbe exempted.\n 8. Affordability and rent stabilization requirements. During the\nrestriction period, a large rental project and a very large rental\nproject shall comply with affordability option A, a modest rental\nproject shall comply with affordability option B, a small rental project\nshall comply with the requirements of affordability option C, and a\nhomeownership project shall comply with affordability option D. Such\nelection shall be made in the application and shall not thereafter be\nchanged.\n (a) All rental dwelling units in an eligible multiple dwelling shall\nshare the same common entrances and common areas as market rate units in\nsuch eligible multiple dwelling and shall not be isolated to a specific\nfloor or area of an eligible multiple dwelling. Common entrances shall\nmean any area regularly used by any resident of a rental dwelling unit\nin the eligible multiple dwelling for ingress and egress from such\neligible multiple dwelling.\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 market\nunits, or (ii) at least fifty percent of the affordable housing units in\nan eligible multiple dwelling shall have two or more bedrooms and no\nmore than twenty-five percent of the affordable housing units shall have\nless than one bedroom.\n (c) Notwithstanding any provision of rent stabilization to the\ncontrary, (i) all restricted units shall remain fully subject to rent\nstabilization both during and subsequent to the restriction period, and\n(ii) any restricted unit occupied by a tenant whose eligibility has been\napproved by the agency shall remain subject to rent stabilization until\nsuch tenant vacates such affordable housing unit where, (A) such\napproval occurred prior to the agency's denial of an application for\nANNY program benefits for the multiple dwelling containing such\nrestricted unit, or (B) such restricted unit is in a multiple dwelling\nfor which an application for ANNY program benefits has not been filed or\nhas been withdrawn after filing.\n (d) All rent stabilization registrations required to be filed shall:\n(i) contain a designation that specifically identifies affordable\nhousing units created pursuant to this section as "ANNY Program\naffordable housing units"; (ii) contain a designation that specifically\nidentifies dwelling units that are subject to rent stabilization in\naccordance with affordability option C; and (iii) contain an explanation\nof the requirements that apply to all such restricted units.\n (e) Failure to comply with the provisions of this subdivision that\nrequire the creation, maintenance, rent stabilization compliance and\noccupancy of restricted units or for purposes of a homeownership project\nthe failure to comply with the affordable homeownership project\nrequirements shall result in the exercise of the agency's enforcement\npowers in accordance with this section, which include, but are not\nlimited to, revocation of any ANNY Program 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,\nadjusted for family size, specified for such affordable housing unit\npursuant to this section, or (ii) prohibit the owner of an eligible site\nfrom requiring, upon initial rental or upon any rental following a\nvacancy, the occupancy of any affordable housing unit by such lower\nincome individuals or families.\n (g) Following issuance of a temporary certificate of occupancy and\nupon each vacancy thereafter, an affordable housing unit shall promptly\nbe offered for rental by individuals or families whose income does not\nexceed the maximum percentage of the area median income, adjusted for\nfamily size, specified for such affordable housing unit pursuant to this\nsection and who intend to occupy such affordable housing unit as their\nprimary residence. A restricted unit shall not be (i) rented to a\ncorporation, partnership or other entity, or (ii) held off the market\nfor a period longer than is reasonably necessary to perform repairs\nneeded to make such restricted unit available for occupancy.\n (h) A restricted unit shall not be rented on a temporary, transient or\nshort-term basis. Every lease and renewal thereof for a restricted unit\nshall be for a term of one or two years, at the option of the tenant.\n (i) A restricted 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 restricted\nunits, both upon initial occupancy and upon any vacancy, (ii) monitoring\ncompliance with the provisions of this subdivision, and (iii) the\nestablishment of marketing bands for affordable housing units, and (iv)\nthe marketing and monitoring of any homeownership project that is\ngranted an exemption pursuant to this subdivision. Such requirements may\ninclude, but need not be limited to, retaining a monitor approved by the\nagency and paid for by the owner.\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 ANNY Program benefits, the unit would be subject to rent\nstabilization.\n 9. Building service employees. (a) For the purposes of this\nsubdivision, (i) "applicant" shall mean an applicant for ANNY 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 site shall receive the applicable\nprevailing wage for the duration of the applicable benefit period,\nregardless of whether such benefits are 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:\n (i) to investigate or cause an investigation to be made to determine\nthe prevailing wages for building service employees; in making such\ninvestigation, the fiscal officer may utilize wage and fringe benefit\ndata from various sources, including, but not limited to, data and\ndeterminations of federal, state or other governmental agencies,\nprovided, however, that the provision of a dwelling unit shall not be\nconsidered wages or a fringe benefit;\n (ii) to institute and conduct inspections at the site of the work or\nelsewhere;\n (iii) to examine the books, documents and records pertaining to the\nwages paid to, and the hours of work performed by, building service\nemployees;\n (iv) to hold hearings and, in connection therewith, to issue\nsubpoenas, administer oaths and examine witnesses; the enforcement of a\nsubpoena issued under this subdivision shall be regulated by the civil\npractice law and rules;\n (v) to make a classification by craft, trade or other generally\nrecognized occupational category of the building service employees and\nto determine whether such work has been performed by the building\nservice employees in such classification;\n (vi) to require the applicant to file with the fiscal officer a record\nof the wages actually paid to the building service employees and of\ntheir hours of work;\n (vii) to delegate any of the foregoing powers to such fiscal officer's\ndeputy or other authorized representative;\n (viii) to promulgate rules as such fiscal officer shall consider\nnecessary for the proper execution of the duties, responsibilities and\npowers conferred upon such fiscal officer by the provisions of this\nparagraph; and\n (ix) to prescribe appropriate sanctions for failure to comply with the\nprovisions of this subdivision. For each violation of paragraph (b) of\nthis subdivision, the fiscal officer may require the payment of: (A)\nback wages and fringe benefits; (B) liquidated damages up to three times\nthe amount of the back wages and fringe benefits for willful violations;\nand/or (C) reasonable attorney's fees. If the fiscal officer finds that\nthe applicant has failed to comply with the provisions of this\nsubparagraph, 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:\n (i) an eligible multiple dwelling containing less than thirty dwelling\nunits; or\n (ii) an eligible multiple dwelling in which all of the dwelling units\nare affordable housing units and not less than fifty percent of such\naffordable housing units, upon initial rental and upon each subsequent\nrental following a vacancy are affordable to and restricted to occupancy\nby individuals or families whose household income does not exceed ninety\npercent of the area median income, adjusted for family size, at the time\nthat such household initially occupies such dwelling unit.\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 paragraph and the affidavits\nrequired pursuant to paragraph (e) of this subdivision.\n 10. Replacement ratio. If the land on which an eligible site is\nlocated contained any dwelling units three years prior to the\ncommencement date of the first eligible multiple dwelling thereon, then\nsuch eligible multiple dwelling or dwellings built thereon shall contain\nat least one affordable housing unit for each dwelling unit that existed\non such date and was thereafter demolished, removed or reconfigured,\nprovided that if such eligible multiple dwelling or dwellings built\nthereon is a small rental project, then such eligible multiple dwelling\nor dwellings built thereon shall contain at least one restricted unit\nfor each dwelling unit that existed on such date and was thereafter\ndemolished, removed or reconfigured.\n 11. Concurrent exemptions or abatements. An eligible multiple dwelling\nreceiving ANNY Program benefits shall not receive any exemption from or\nabatement of real property taxation under any other law.\n 12. 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 ANNY\nProgram benefits unless the agency authorizes such renunciation or\ntermination in connection with the commencement of a new tax exemption\npursuant to either the private housing finance law or section four\nhundred twenty-c of this title.\n 13. Termination or revocation. The agency may terminate or revoke ANNY\nProgram benefits for failure to comply with this section; provided,\nhowever, that the agency shall not terminate or revoke ANNY Program\nbenefits for a failure to comply with subdivision three of this section.\nIf a covered building service employer has committed three violations of\nthe requirements of paragraph (b) of subdivision nine of this section\nwithin a five-year period, the agency may revoke any benefits associated\nwith such eligible multiple dwelling under this section. For purposes of\nthis subdivision, a "violation" of paragraph (b) of subdivision nine of\nthis section shall be deemed a finding by the fiscal officer that the\ncovered building service employer has failed to comply with paragraph\n(b) of subdivision nine of this section and has failed to cure the\ndeficiency within three months of such finding. Provided, however, that\nafter a second such violation, the applicant shall be notified that any\nfurther violation may result in the revocation of benefits under this\nsection and that the fiscal officer shall publish on its website a list\nof all applicants with two violations as defined in this subdivision. If\nANNY Program benefits are terminated or revoked for noncompliance with\nthis section: (a) all of the restricted units shall remain subject to\nrent stabilization and all other requirements of this section for the\napplicable restriction period, and any additional period expressly\nprovided in this section, as if the ANNY Program benefits had not been\nterminated or revoked; or (b) for a homeownership project, such project\nshall continue to comply with affordability requirements set forth in\nthis section and all other requirements of this section for the\nrestriction period and any additional period expressly provided in this\nsection, as if the ANNY Program benefits had not been terminated or\nrevoked.\n 14. 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 15. Multiple tax lots. If an eligible site contains multiple tax lots,\nan application may be submitted with respect to one or more of such tax\nlots. The agency shall determine eligibility for ANNY Program benefits\nbased upon the tax lots included in such application and benefits for\neach multiple dwelling shall be based upon the completion date of such\nmultiple dwelling.\n 16. Applicant registration. (a) Prospective applicants for ANNY\nProgram benefits pursuant to this section shall file with the agency a\nform supplied by the agency which: (i) states an intention to file for\nsuch benefits under the provisions of this subdivision; (ii) includes\nthe commencement date; and (iii) establishes the intended number of\ntotal dwelling units and, if applicable, restricted units. The agency\nshall promulgate such form no later than ninety days after the effective\ndate of this section.\n (b) The form described in paragraph (a) of this subdivision shall be\nfiled: (i) for projects with a commencement date before the effective\ndate of this section, no later than six months after such effective date\nor six months after the agency promulgates the form described in\nparagraph (a) of this subdivision, whichever is later; or (ii) for\nprojects with a commencement date on or after the effective date of this\nsection, no later than six months after such commencement date or six\nmonths after the agency promulgates the form described in paragraph (a)\nof this subdivision, whichever is later.\n (c) Applicants who fail to comply with the requirements of this\nsubdivision shall be subject to a penalty not to exceed one hundred\npercent of the application filing fee otherwise payable pursuant to\nsubdivision eighteen of this section.\n 17. Applications. (a) The application with respect to any eligible\nmultiple dwelling shall be filed with the agency not later than one year\nafter the completion date of such 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 licensee found guilty of such\nmisconduct under the procedures prescribed in section sixty-five hundred\nten of the education law shall be subject to the penalties prescribed in\nsection sixty-five hundred eleven of the education law and shall\nthereafter be ineligible to submit a certification pursuant to this\nsection.\n (d) The agency shall not require that the applicant demonstrate\ncompliance with the requirements of subdivision three of this section as\na condition to approval of the application.\n 18. Filing fee. (a) The agency may require a filing fee of: (i) three\nthousand dollars per dwelling unit in connection with any application\nfor an eligible site consisting of more than five and less than eleven\nresidential rental dwelling units; (ii) four thousand dollars per\ndwelling unit in connection with any application for an eligible site\nconsisting of more than eleven units and less than one hundred\nresidential dwelling units; (iii) four thousand dollars per dwelling\nunit in connection with any application for a homeownership project; and\n(iv) five thousand dollars per dwelling unit in connection with any\napplication for an eligible site consisting of one hundred or more\nresidential dwelling units.\n (b) Notwithstanding the provisions contained in paragraph (a) of this\nsubdivision, the agency may promulgate rules: (i) imposing a lesser fee\nfor eligible sites containing eligible multiple dwellings constructed\nwith the substantial assistance of grants, loans or subsidies provided\nby a federal, state or local governmental agency or instrumentality\npursuant to a program for the development of affordable housing; and\n(ii) 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 a modest rental\nproject, a large rental project, or a very large rental project.\n 19. Rules. Except as provided in subdivisions three and nine of this\nsection, the agency shall have the sole authority to enforce the\nprovisions of this section and may promulgate rules to carry out the\nprovisions of this section.\n 20. Reporting. On or before June thirtieth of each year, the\ncommissioner of the agency shall issue a report to the governor, the\ntemporary president of the senate and the speaker of the assembly\nsetting forth the number of total projects and units created by this\nsection by year, level of affordability, and community board, the cost\nof the ANNY Program, and other such factors as the commissioner of the\nNew York city department of housing preservation and development deems\nappropriate. The New York city department of housing preservation and\ndevelopment may request and shall receive cooperation and assistance\nfrom all departments, divisions, boards, bureaus, commissions, public\nbenefit corporations or agencies of the state of New York, the city of\nNew York or any other political subdivisions thereof, or any entity\nreceiving benefits pursuant to this section.\n 21. Penalties for violations of affordability and rent stabilization\nrequirements. (a) On and after the expiration date of the ten year\nbenefit, twenty year benefit, thirty-five year benefit, or forty year\nbenefit, as applicable, the agency may impose, after notice and an\nopportunity to be heard, a fine for any violation of the affordability\nand rent stablization requirements established pursuant to subdivision\neight of this section by such small rental project, modest rental\nproject, large rental project, very large rental project, or\nhomeownership project. The agency shall establish a schedule and method\nof calculation of such fines pursuant to subdivision nineteen of this\nsection.\n (b) A fine under this subdivision may be imposed against the owner of\nthe eligible site containing such small rental project, modest rental\nproject, large rental project, very large rental project, or\nhomeownership project at the time the violation occurred, even if such\nowner no longer owns such eligible site. A failure to pay such fine may\nresult in a lien and such other remedies as may be available pursuant to\napplicable law and regulation.\n