§ 488-A — Rehabilitation of certain class B multiple dwellings and class A multiple dwellings used for single room occupancy

New York § 488-A

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

Text

§ 488-a. Rehabilitation of certain class B multiple dwellings and\nclass A multiple dwellings used for single room occupancy. 1.\nDefinitions. For the purposes of this section the following terms shall\nhave the meaning specified in this subdivision:\n a. "Eligible real property" shall mean:\n (i) any class B multiple dwelling;\n (ii) any class A multiple dwelling used for single room occupancy\npursuant to section two hundred forty-eight of the multiple dwelling law\nwhich contains no more than twenty-five percent class A dwelling units\nwhich contain lawful sanitary and kitchen facilities within the dwelling\nunit, provided that in the case of a multiple dwelling containing ten\ndwelling units or less, up to forty percent of the dwelling units may be\nclass A units.\n Notwithstanding the foregoing, eligible real property shall not\ninclude college and school dormitories, club houses, or residences whose\noccupancy is restricted to an institutional use such as housing intended\nfor use primarily or exclusively by the employees of a single company or\ninstitution. A building is an eligible real property only if it\nqualifies as such after completion of the eligible improvements, but\nneed not have been an eligible real property prior to the eligible\nimprovements.\n (iii) not-for-profit institutions with sleeping accommodations.\n b. "Eligible improvements" shall be limited to the following\ncatogories of work, provided further that such work shall be in\nconformity with all applicable laws:\n (i) replacement of a boiler or burner or installation of an entire new\nheating system;\n (ii) replacement or upgrading of electrical system;\n (iii) replacement or upgrading of elevators;\n (iv) installation or replacement or upgrading of the plumbing system,\nincluding water main and risers;\n (v) replacement or installation of walls, ceilings, floors or trim\nwhere necessary;\n (vi) replacement or upgrading of doors, installation of security\ndevices and systems;\n (vii) installation, replacement or upgrading of smoke detectors, fire\nalarms, fire escapes, or sprinkler systems;\n (viii) replacement or repair of roof, leaders and gutters;\n (ix) replacement or installation of bathroom facilities;\n (x) installation of wall and pipe insulation;\n (xi) replacement or upgrading of street connections for water or sewer\nservices;\n (xii) replacement or installation of windows, or installation of\nwindow gates or guards;\n (xiii) installation or replacement of boiler smoke stack;\n (xiv) pointing, waterproofing and cleaning of entire building exterior\nsurface;\n (xv) improvements designed to conserve the use of fuel, electricity or\nother energy sources;\n (xvi) improvements unique to congregate living facilities, as defined\nby rules and regulations promulgated by the local housing agency,\npursuant to subdivision seven of this section; and\n (xvii) work necessary to effect compliance with all applicable laws\nincluding but not limited to the multiple dwelling law, the New York\ncity housing maintenance code and the New York city building code.\n c. "Local housing agency". Local housing agency shall have the same\nmeaning as the term "agency" under section five hundred two of the\ngeneral municipal law, except that in cities of over one million in\npopulation the term shall mean the department of housing preservation\nand development.\n d. "Permanent resident". Permanent resident shall mean a person who\nhas resided in eligible real property for six months or more, has a\nlease with a term of six or more months, or has requested a lease\npursuant to the provisions of the rent stabilization code for housing\naccommodations located in hotels.\n 2. Local legislative action. Any city to which the multiple dwelling\nlaw is applicable, acting through its local legislative body or other\ngoverning agency, is hereby authorized and empowered to adopt and amend\nlocal laws or ordinances up to and including December thirty-first, two\nthousand nineteen, to provide that any increase in assessed valuation of\neligible real property shall be exempt from taxation for local purposes\nand to provide for the abatement of taxes on eligible real property,\nincluding the land, in accordance with this section.\n 3. Tax exemption. Any increase in assessed valuation of eligible real\nproperty resulting from eligible improvements shall be exempt from\ntaxation for local purposes for a period of thirty-two years, provided\nthat:\n (i) the eligible improvements are commenced after July first, nineteen\nhundred eighty, but prior to December thirty-first, two thousand\nnineteen, and are completed within thirty-six months of commencement;\n (ii) the eligible improvements are approved by the local housing\nagency with respect to their cost and their qualifications for the\nbenefits of this section;\n (iii) the exemption may commence no sooner than the July first\nfollowing the filing with the local agency responsible for real property\ntax assessment of a certification of eligibility issued by the local\nhousing agency for such exemption; provided, however, that if the\nrehabilitation is carried out with substantial government assistance as\npart of a program for affordable housing, the exemption may commence no\nsooner than the July first following the commencement of construction of\neligible improvements;\n (iv) immediately prior to, and during, the construction of the\neligible improvements, fifty or more percent of the dwelling units in\nsuch eligible real property are occupied by permanent residents;\nprovided that such occupancy requirement shall not apply to a vacant,\ngovernmentally owned, multiple dwelling, nor to a privately owned\nmultiple dwelling which had been vacant for not less than two years\nprior to the commencement of construction of eligible improvements, nor\nto a vacant multiple dwelling where the eligible improvements are\ncarried out with the substantial assistance of grants, loans or\nsubsidies from any federal, state or local agency or instrumentality or\nany not-for-profit philantropic organization one of whose primary\npurposes is providing low or moderate income housing;\n (v) there shall be no outstanding real estate taxes, water and sewer\ncharges, payments in lieu of taxes or other municipal charges due and\nowing as of the tax quarter prior to commencement of tax exemption to\nthis section;\n (vi) except in the case of eligible real property which is receiving\nor has received assistance pursuant to a governmental rent subsidy\nprogram, or which is owned by a not-for-profit corporation or by a\nwholly owned subsidiary of a not-for-profit corporation and which is\nreceiving or has received assistance pursuant to a governmental loan\nsubsidy program, as defined by the rules and regulations promulgated by\nthe local housing agency, pursuant to subdivision seven of this section,\nfor the construction of eligible improvements, the initial rent, after\ncompletion of eligible improvements, for ninety percent of the total\nnumber of dwelling units occupied by permanent residents in a class A or\nclass B multiple dwelling other than apartments shall not exceed the\ngreater of either the amount of any governmental rental assistance\nreceived by an occupant or seventy-five percent of the rent which is\npermitted to be charged for zero-bedroom units on the moderate\nrehabilitation fair market rent schedule as determined by the United\nStates department of housing and urban development for the housing\nassistance payments program under section eight of the national housing\nact;\n (vii) no person who lives in the eligible real property shall be\nrequired by the owner to vacate the eligible real property in order to\nperform the eligible improvements or any related work.\n 4. Tax abatement. Eligible real property which qualifies for exemption\nfrom taxation for local purposes for eligible improvements shall also be\neligible for an abatement of real property taxes in an amount no greater\nthan twelve and one-half percent of the reasonable cost of eligible\nimprovements certified by the local housing agency, which abatement may\ncommence on the first day of the first tax quarter following the filing\nwith the local agency responsible for real property tax assessment of a\ncertification of eligibility issued by the local housing agency for such\nabatement; provided, however that if the rehabilitation is carried out\nwith substantial government assistance as part of a program for\naffordable housing the abatement may commence no sooner than the first\nday of the first tax quarter following the commencement of construction\nof eligible improvements, provided that:\n (i) the annual abatement shall not exceed the amount of taxes\notherwise payable in the corresponding tax year;\n (ii) the period during which such abatement is effective shall not\nexceed twenty consecutive years from the date such abatement first\nbecomes effective; and\n (iii) the total abatement shall not exceed the lesser of one hundred\nfifty percent of the certified reasonable costs of eligible improvements\nor the actual costs as determined by the local housing agency pursuant\nto its rules and regulations.\n 5. Continuing requirements. During the period of tax exemption or\nabatement pursuant to this section, exemption and abatement shall be\nconditional upon continuing compliance with the following requirements:\n (i) compliance with all applicable provisions of law, including but\nnot limited to the multiple dwelling law, the local building code and\nthe local housing maintenance code;\n (ii) all dwelling units, except owner occupied units, shall be subject\nto the emergency housing rent control law or the local emergency housing\nrent control act, or the emergency tenant protection act of nineteen\nseventy-four, or any local laws enacted pursuant thereto, or the rent\nstabilization law of nineteen hundred sixty-nine; provided, however that\nthe department of housing preservation and development may exempt from\nthis requirement dwelling units that are not occupied by permanent\nresidents in those buildings owned by a not-for-profit corporation or by\na wholly owned subsidiary of a not-for-profit corporation and which are\nimproved with the aid of a rehabilitation loan from any governmental\nagency or instrumentality or operated pursuant to a contract with a\ngovernmental entity;\n (iii) it shall not receive tax exemption or tax abatement for\nrehabilitation or new construction under any other provision of law; and\n (iv) the eligible improvements shall not be used as the basis for any\napplication for rent increases and the owner shall file a statement to\nsuch effect with the local housing agency and with any applicable rent\nagency, provided, however, that rents of units improved with the aid of\na rehabilitation loan from any governmental agency or instrumentality\nmay within the limitations established by this section be increased\npursuant to the rules and regulations of the local housing agency; and\n (v) a minimum of seventy-five percent of the dwelling units shall be\nrental units occupied by permanent residents, provided, however, that\nthe local housing agency may exempt from this requirement those\nbuildings improved with the aid of a rehabilitation loan from any\ngovernment agency or instrumentality or operated pursuant to a contract\nwith a governmental entity.\n 6. Revocation. The benefits of this section may be revoked or reduced\nupon a finding by the local housing agency or local finance agency that:\n (i) the application for benefits hereunder or the annual certification\nrequired hereunder contains a false statement or false information as to\na material matter or omits a material matter;\n (ii) real estate taxes, water and sewer charges, payments in lieu of\ntaxes or other municipal charges are due and owing for more than one\nyear; or\n (iii) the eligible real property fails to comply with one or more of\nthe provisions or requirements of this section.\n 7. Rules and regulations. The local agencies of government charged\nwith the administration of this section may promulgate rules and\nregulations to carry out the provisions of this section.\n 8. Annual certification. During the period of tax exemption or\nabatement pursuant to this section, the owner shall submit an annual\ncertification to the local housing agency in a form to be prescribed by\nsuch agency. Failure to submit such certification may result in\nrevocation of benefits. Such certification shall include the following:\n (i) the total number of dwelling units within the eligible real\nproperty and the number of dwelling units occupied by permanent\nresidents;\n (ii) the number of dwelling units subject to the provisions of the\nemergency housing rent control act, the emergency tenant protection act\nof nineteen seventy-four or any local laws enacted pursuant thereto, the\nemergency housing rent control law or the rent stabilization law of\nnineteen hundred sixty-nine; and\n (iii) all such other information required by the local housing agency.\n