§ 499-CC — Eligibility requirements

New York § 499-CC

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 4-A: Tax Abatement For Certain Commercial Properties In a City of One Million or More Persons
• Art. 4: Exemptions

Text

§ 499-cc. Eligibility requirements. 1. No abatement shall be granted\npursuant to this title unless:\n (a) the landlord enters into a lease for eligible premises with a new\ntenant or a renewal tenant and:\n (1) the lease commencement date is within the eligibility period;\n (2) (i) if, by the sixtieth day following the rent commencement date,\nsuch new or renewal tenant employs one hundred twenty-five or fewer\nemployees in the eligible premises, the initial lease term is for a\nperiod of at least five years or, with respect to a lease commencing on\nor after April first, nineteen hundred ninety-seven, the initial lease\nterm is for a period of at least three years; or (ii) if, by the\nsixtieth day following the rent commencement date, such new or renewal\ntenant employs more than one hundred twenty-five employees in the\neligible premises, the initial lease term is for a period of at least\nten years; or (iii) with respect to a lease for eligible premises as\ndefined in subparagraph (ii) of paragraph (b) or paragraph (c) of\nsubdivision ten of section four hundred ninety-nine-aa of this title\ncommencing on or after July first, two thousand five, the initial lease\nterm is for a period of at least three years; and\n (3) (i) if the lease is with a new tenant required to sign a lease\nwith an initial lease term of at least five years, expenditures on\nimprovements to the eligible premises and the common areas of the\neligible building are in an amount at least equal to five dollars per\nsquare foot, provided, however, that with respect to a lease commencing\non or after April first, nineteen hundred ninety-seven, if, by the\nsixtieth day following the rent commencement date, the new tenant\nemploys one hundred twenty-five or fewer employees in the eligible\npremises, expenditures on improvements to the eligible premises and the\ncommon areas of the eligible building are in an amount at least equal to\ntwo dollars and fifty cents per square foot; or (ii) if the lease is\nwith a new tenant required to sign a lease with an initial lease term of\nat least ten years, expenditures on improvements to the eligible\npremises and the common areas of the eligible building are in an amount\nat least equal to twenty-five dollars per square foot; or (iii) if the\nlease is with a renewal tenant, expenditures on improvements to the\neligible premises and the common areas of the eligible building are in\nan amount at least equal to five dollars per square foot for any\npremises previously occupied by such renewal tenant, provided, however,\nthat with respect to a lease commencing on or after April first,\nnineteen hundred ninety-seven, if, by the sixtieth day following the\nrent commencement date, the renewal tenant employs one hundred\ntwenty-five or fewer employees in the eligible premises previously\noccupied by such renewal tenant, expenditures on improvements to the\neligible premises and the common areas of the eligible building are in\nan amount at least equal to two dollars and fifty cents per square foot;\nand in an amount at least equal to the amount specified in clause (i) or\n(ii) of this subparagraph, depending upon the required initial lease\nterm, for any premises not previously occupied by such renewal tenant;\nor (iv) if the lease is with a new tenant for eligible premises as\ndefined in subparagraph (ii) of paragraph (b) or paragraph (c) of\nsubdivision ten of section four hundred ninety-nine-aa of this title,\nexpenditures on improvements to the eligible premises and the common\nareas of the eligible building are in an amount at least equal to two\ndollars and fifty cents per square foot; or (v) if the lease is with a\nrenewal tenant for eligible premises as defined in subparagraph (ii) of\nparagraph (b) or paragraph (c) of subdivision ten of section four\nhundred ninety-nine-aa of this title, expenditures on improvements are\nin an amount at least equal to five dollars per square foot for any\npremises previously occupied by such renewal tenant, and in an amount at\nleast equal to two dollars and fifty cents per square foot for any\npremises not previously occupied by such renewal tenant; or\n (b) the landlord enters into a lease with an expansion tenant for\nexpansion premises and:\n (1) the lease commencement date is within the eligibility period;\n (2) (i) if, by the sixtieth day following the rent commencement date,\nsuch expansion tenant employs one hundred twenty-five or fewer employees\nin the expansion premises, the initial lease term for the expansion\npremises is for a period of at least five years or, with respect to a\nlease commencing on or after April first, nineteen hundred ninety-seven,\nthe initial lease term is for a period of at least three years; or (ii)\nif, by the sixtieth day following the rent commencement date, such\nexpansion tenant employs more than one hundred twenty-five employees in\nsuch expansion premises, the initial lease term for the expansion\npremises is for a period of at least ten years; or (iii) with respect to\na lease commencing on or after July first, two thousand five for\neligible premises as defined in subparagraph (ii) of paragraph (b) or\nparagraph (c) of subdivision ten of section four hundred ninety-nine-aa\nof this title, the initial lease term is for a period of at least three\nyears; and\n (3) (i) if the lease is with an expansion tenant required to sign a\nlease with an initial lease term of at least five years, expenditures on\nimprovements to the expansion premises and the common areas of the\neligible building are in an amount at least equal to five dollars per\nsquare foot, provided, however, that with respect to a lease commencing\non or after April first, nineteen hundred ninety-seven, if, by the\nsixtieth day following the rent commencement date, the expansion tenant\nemploys one hundred twenty-five or fewer employees in the expansion\npremises, expenditures on improvements to the expansion premises and the\ncommon areas of the eligible building are in an amount at least equal to\ntwo dollars and fifty cents per square foot; or (ii) if the lease is\nwith an expansion tenant required to sign a lease with an initial lease\nterm of at least ten years, expenditures on improvements to the\nexpansion premises and the common areas of the eligible building are in\nan amount at least equal to twenty-five dollars per square foot; or if\nthe lease is with an expansion tenant for eligible premises as defined\nin subparagraph (ii) of paragraph (b) or paragraph (c) of subdivision\nten of section four hundred ninety-nine-aa of this title, expenditures\non improvements to the expansion premises and the common areas of the\neligible building are in an amount at least equal to two dollars and\nfifty cents per square foot.\n 2. No abatement shall be granted pursuant to this title if an\napplicant shall fail to meet any of the requirements of this title\nwithin sixty days of the rent commencement date; provided that for a\nlease with a renewal tenant, the expenditures on improvements required\nby subdivision one of this section shall be made within one year of the\nlease commencement date.\n 3. (a) (i) With respect to the abatement zone defined in paragraph (a)\nof subdivision two of section four hundred ninety-nine-aa of this title\nand for purposes of determining whether the amount of expenditures\nrequired by subdivision one of this section have been satisfied,\nexpenditures on improvements to the common areas of an eligible building\nshall be included only if work on such improvements commenced and the\nexpenditures are made on or after April first, nineteen hundred\nninety-five and on or before September thirtieth, two thousand one;\nprovided, however, that expenditures on improvements to the common areas\nof an eligible building made prior to three years before the lease\ncommencement date shall not be included.\n (ii) With respect to the eligible premises defined in subparagraph (i)\nof paragraph (b) of subdivision ten of section four hundred\nninety-nine-aa of this title and for purposes of determining whether the\namount of expenditures required by subdivision one of this section have\nbeen satisfied, expenditures on improvements to the common areas of an\neligible building shall be included only if work on such improvements\ncommenced and the expenditures are made on or after July first, two\nthousand and on or before December thirty-first, two thousand ten;\nprovided, however, that expenditures on improvements to the common areas\nof an eligible building made prior to three years before the lease\ncommencement date shall not be included.\n (iii) With respect to the eligible premises defined in subparagraph\n(ii) of paragraph (b) or paragraph (c) of subdivision ten of section\nfour hundred ninety-nine-aa of this title and for purposes of\ndetermining whether the amount of expenditures required by subdivision\none of this section have been satisfied, expenditures on improvements to\nthe common areas of an eligible building shall be included only if work\non such improvements commenced and the expenditures are made on or after\nJuly first, two thousand five and on or before December thirty-first,\ntwo thousand twenty-eight; provided, however, that expenditures on\nimprovements to the common areas of an eligible building made prior to\nthree years before the lease commencement date shall not be included.\n (b) The landlord may allocate expenditures on improvements to the\ncommon areas of an eligible building to eligible tenants in such manner\nas reasonably relates to such eligible tenants.\n 4. For purposes of this title, the expiration date of a lease shall be\ndetermined by the expiration date set forth in such lease, without\ngiving effect to any rights of the landlord or the tenant to terminate\nsuch lease prior to the expiration date set forth therein.\n 5. The lease for the eligible premises shall contain the following\nprovisions:\n (a) a statement of the tenant's percentage share;\n (b) a statement certifying the percentage of eligible premises\noccupied or used for industrial and manufacturing activities, as defined\nin subdivision fourteen-a of section four hundred ninety-nine-aa of this\ntitle, and the percentage of eligible premises occupied or used for\nancillary purposes where the lease is for eligible premises defined in\nsubparagraph (ii) of paragraph (b) or paragraph (c) of subdivision ten\nof section four hundred ninety-nine-aa of this title;\n (c) a statement informing the tenant in at least twelve-point type\nthat:\n (1) an application for abatement of real property taxes pursuant to\nthis title will be made for the premises;\n (2) the rent, including amounts payable by the tenant for real\nproperty taxes, will accurately reflect any abatement of real property\ntaxes granted pursuant to this title for the premises;\n (3) at least five dollars per square foot or twenty-five dollars per\nsquare foot must be spent on improvements to the premises and the common\nareas, the amount being dependent upon the length of the lease and\nwhether it is a new or a renewal lease, provided, however, that with\nrespect to a lease commencing on or after April first, nineteen hundred\nninety-seven, if, by the sixtieth day following the rent commencement\ndate, the tenant employs one hundred twenty-five or fewer employees in\nthe relevant premises, at least two dollars and fifty cents per square\nfoot must be spent on improvements to the premises and the common areas;\nand\n (4) all abatements granted with respect to a building pursuant to this\ntitle will be revoked if, during the benefit period, real estate taxes\nor water or sewer charges or other lienable charges are unpaid for more\nthan one year, unless such delinquent amounts are paid as provided in\nsubdivision four of section four hundred ninety-nine-ff of this title;\nand\n (5) all benefits granted with respect to eligible premises as defined\nin subparagraph (ii) of paragraph (b) or paragraph (c) of subdivision\nten of section four hundred ninety-nine-aa of this title will be reduced\nif, during the benefit period, the aggregate floor area of such eligible\npremises occupied or used for industrial and manufacturing activities,\nas defined in subdivision fourteen-a of section four hundred\nninety-nine-aa of this title, is reduced.\n 6. No abatement shall be granted pursuant to this title if:\n (a) the lease for the eligible premises provides that during the\ninitial lease term required by subdivision one of this section either\nthe landlord or the tenant may terminate such lease prior to the\nexpiration date of such required initial lease term; provided that such\nlease may provide that either the landlord or the tenant may terminate\nsuch lease if (1) the other party is in default of any of such party's\nobligations under the lease, (2) the eligible premises are damaged or\ndestroyed by fire or other casualty, (3) the eligible premises are\nrendered unusable for any reason not attributable to any act or failure\nto act of either tenant or landlord, or (4) the eligible premises are\nacquired by eminent domain; and\n (b) there are real property taxes, water or sewer charges or other\nlienable charges currently due and owing on the eligible building which\nis the subject of an application for abatement pursuant to this title,\nunless such real property taxes or charges are currently being paid in\ntimely installments pursuant to a written agreement with the department\nof finance or other appropriate agency.\n 7. No abatement shall be granted pursuant to this title unless the\napplicant shall file, together with the application, an affidavit\nsetting forth the following information:\n (a) a statement that within the seven years immediately preceding the\ndate of application for a certificate of abatement, neither the\napplicant nor any person owning a substantial interest in the eligible\nbuilding as defined in paragraph (c) of this subdivision, nor any\nofficer, director or general partner of the applicant or such person was\nfinally adjudicated by a court of competent jurisdiction to have\nviolated 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, or was\nan officer, director or general partner of a person at the time such\nperson was finally 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 eligible\nbuilding as defined in paragraph (c) of this subdivision, or any\nofficer, director or general partner of the applicant or such person, or\nany person for whom the applicant or person owning a substantial\ninterest in the eligible building is an officer, director or general\npartner.\n (c) for purposes of this subdivision and subdivision seven of section\nfour hundred ninety-nine-ff of this title, "substantial interest" shall\nmean ownership and control of an interest of ten per centum or more in\nthe eligible building or in any person owning the eligible building.\n