§ 489-CCCCC — Eligibility for benefits

§ 489-ccccc. Eligibility for benefits. 1. A recipient of a\ncertificate of eligibility with an effective date of July first,\nnineteen hundred ninety-five or after must make one-half the minimum\nrequired expenditure within eighteen months of the effective date of\nsuch certificate, and make the minimum required expenditure within\nthirty-six months of the effective date of such certificate to be\neligible to receive the benefits of this title. Any recipient who shall\nfail to make such expenditures shall cease to be eligible for benefits\npursuant to this title and shall pay, with interest, any taxes for which\nan exemption was claimed pursuant to this title.\n 2. No benefits pursuant to this title shall be granted for\nconstruction work on any condominium unit unless such unit is in a\nbuilding or structure which, if viewed as a whole and as if it were\nunder single ownership, would qualify as mixed-use property. The\nminimum required expenditure applicable to any recipient of a\ncertificate of eligibility for construction work on a condominium unit\nshall be equal to the minimum required expenditure which would apply if\na certificate of eligibility were issued for construction work on the\nentire property where such unit is located. Nothing in this subdivision\nshall be construed to prevent owners of condominium units in the same\nproperty from forming an association to be a recipient.\n 3. No benefits pursuant to this title shall be granted for any\nconstruction work unless the applicant filed an application for such\nbenefits on or before the date of issuance of a building permit for such\nwork. The requirements of this subdivision may be satisfied where the\napplicant's architect, contractor or other representative authorized to\nfile the application for such building permit files with the department\nof finance on behalf of the applicant a preliminary application\ncontaining such information as the department of finance shall prescribe\nby rule.\n 4. No benefits pursuant to this title shall be granted for any\nconstruction work on property any part of which is used or is to be used\nfor a restricted activity.\n 5. No benefits pursuant to this title shall be granted for\nconstruction work which is the subject of a certificate of eligibility\nissued pursuant to title two, title two-C or title two-D of this\narticle.\n 6. The benefits of this title shall be granted exclusively for\nresidential construction work or a combination of residential\nconstruction work and commercial construction work described in approved\nplans. The benefits of this title shall be granted exclusively for\nresidential construction work or a combination of residential\nconstruction work and commercial construction work on existing buildings\nor structures which, after completion of such construction work, will\nqualify as mixed-use property. No benefits pursuant to this title shall\nbe granted for construction of a new building or structure.\n 7. Any tax lot which is partly located inside the mixed-use\nconstruction exemption area shall be deemed to be entirely located\ninside such area.\n 8. No benefits pursuant to this title shall be granted for any\nresidential construction work or combination of residential construction\nwork and commercial construction work unless the applicant shall file,\ntogether with the application, an affidavit setting forth the following\ninformation:\n (a) a statement that within the seven years immediately preceding the\ndate of application for a certificate of eligibility, neither the\napplicant, nor any person owning a substantial interest in the property\nas defined in paragraph (c) of this subdivision, nor any officer,\ndirector or general partner of the applicant or such person was finally\nadjudicated by a court of competent jurisdiction to have violated\nsection two hundred thirty-five of the real property law or any section\nof article one hundred fifty of the penal law or any similar arson law\nof another jurisdiction with respect to any building, or was an officer,\ndirector or general partner of a person at the time such person was\nfinally adjudicated to have violated such law; and\n (b) a statement setting forth any pending charges alleging violation\nof section two hundred thirty-five of the real property law or any\nsection of article one hundred fifty of the penal law or any similar\narson law of another jurisdiction with respect to any building by the\napplicant or any person owning a substantial interest in the property as\ndefined in paragraph (c) of this subdivision, or any officer, director\nor general partner of the applicant or such person, or any person for\nwhom the applicant or person owning a substantial interest in the\nproperty is an officer, director or general partner.\n (c) "Substantial interest" as used in this subdivision and subdivision\nnine of this section shall mean ownership and control of an interest of\nten per centum or more in a property or any person owning a property.\n 9. (a) If any person described in the statement required by paragraph\n(b) of subdivision eight of this section or paragraph (b) of this\nsubdivision is finally adjudicated by a court of competent jurisdiction\nto be guilty of any charge listed in such statement, the recipient shall\ncease to be eligible for benefits pursuant to this title and shall pay,\nwith interest, any taxes for which an exemption was claimed pursuant to\nthis title.\n (b) The recipient shall, on the certificate of continuing use, state\nwhether any charges alleging violation by the recipient or any person\nowning a substantial interest in the property, or any officer, director\nor general partner of the recipient or person owning a substantial\ninterest in the property, or any person for whom the recipient or person\nowning a substantial interest in the property is an officer, director or\ngeneral partner, of section two hundred thirty-five of the real property\nlaw or any section of article one hundred fifty of the penal law or any\nsimilar arson law of another jurisdiction, are pending. For purposes of\nthis paragraph, "substantial interest" shall have the same meaning as\nset forth in paragraph (c) of subdivision eight of this section.\n 10. In addition to any other qualifications for exemption from payment\nof taxes set forth in this title, an applicant must be:\n (a) obligated to pay real property tax on the property for which an\nexemption is sought, whether such obligation arises because of record\nownership of such property, or because the obligation to pay such tax\nhas been assumed by contract; or\n (b) the record owner or lessee of property which is exempt from real\nproperty taxation who has entered into an agreement to sell or lease\nsuch property to another person. Such person shall be a co-applicant\nwith such owner or lessee.\n 11. A co-applicant with a public entity shall be an eligible recipient\npursuant to this title, provided that for such period as the property\nwhich is the subject of the certificate of eligibility is exempt from\nreal property taxation because it is owned or controlled by a public\nentity no benefits shall be available to such recipient pursuant to this\ntitle. Such recipient shall receive benefits pursuant to this title when\nsuch property ceases to be eligible for exemption pursuant to other\nprovisions of law, as follows: the recipient shall, commencing with the\ndate such tax exemption ceases, and continuing until the expiration of\nthe benefit period pursuant to this title, receive the benefits to which\nsuch recipient is entitled in the corresponding tax year pursuant to\nthis title.\n 12. Notwithstanding the provisions of any local law for the\nstabilization of rents in multiple dwellings or the emergency tenant\nprotection act of nineteen seventy-four, the rents of a dwelling unit in\nproperty which is the subject of a certificate of eligibility pursuant\nto this title shall be fully subject to control under such local law,\nunless exempt under such local law from control by reason of the\ncooperative or condominium status of the dwelling unit, for the entire\nperiod for which such property is receiving benefits pursuant to this\ntitle, provided, however, that for purposes of this subdivision, a\nproperty receiving benefits pursuant to this title whose benefits are\nsuspended, terminated or revoked by the department of finance shall be\ndeemed to be receiving benefits for the length of time such benefits\nwould have been received if such benefits had not been suspended,\nterminated or revoked, or for the period such local law is in effect,\nwhichever is shorter. Thereafter, such rents shall continue to be\nsubject to such control, except that such rents that would not have been\nsubject to such control but for this subdivision, shall be decontrolled\nif the landlord has included in each lease and renewal thereof for such\nunit for the tenant in residence at the time of such decontrol a notice\nin at least twelve point type informing such tenant that the unit shall\nbecome subject to such decontrol upon the expiration of benefits\npursuant to this title.\n