N.Y. Real Property Tax Law § 421-c: Exemption of certain new multiple dwellings from local taxation

§ 421-c. Exemption of certain new multiple dwellings from local

taxation. 1. The provisions of this section shall apply to each town,

village or city with a population of less than one million which has

declared an emergency in accordance with the provisions of the emergency

tenant protection act of nineteen seventy-four and which adopts a

resolution making the provisions of this section applicable to such

town, village or city. The owner of housing accommodations in a newly

constructed building, which would be subject to the provisions of such

act except for the fact that the building was completed on or after

January first, nineteen hundred seventy-four, may file a declaration, in

a form suitable for recording, with the rent guidelines board subjecting

such housing accommodations to the provisions of said act.

2. Such new residential buildings shall be exempt from all taxes

imposed by a municipal corporation including those imposed by a school

district, other than assessments for local improvements, during

construction and so long as used for residence purposes for a period not

to exceed ten years in the aggregate after the taxable status date

immediately following the completion thereof, consisting of two years of

full exemption followed by two years of exemption from eighty percent of

such taxation, followed by two years of exemption from sixty percent of

such taxation, followed by two years of exemption from forty percent of

such taxation, followed by two years of exemption from twenty percent of

such taxation; provided that taxes shall be paid during any such period

at least in the amount of the taxes paid on such land and any

improvements thereon during the tax year preceding the commencement of

such construction and that exemption from taxes shall not be availed of

concurrently under any other law. To be eligible for exemption under

this section such construction shall take place on vacant, predominantly

vacant or under-utilized land, or on land improved with a non-conforming

use. The initial legal regulated rents to be charged upon initial

occupancy after construction aided by exemption under this section shall

be at least fifteen percent less than the rents prevailing for

comparable newly constructed residential units in the same area or any

comparable area; and notwithstanding the provisions of the emergency

tenant protection act of nineteen seventy-four, the rents shall be fully

subject to regulation under such act for a period of ten years or for

the period such act is in effect in the municipality in which the

building is situate, whichever is shorter, at the expiration of which

such rent shall be deregulated, unless immediately prior to such

expiration such rents would have been regulated by the provisions of any

law other than pursuant to this section, in which event such rents shall

continue subject to such regulation to the same extent and in the same

manner as if this section had never applied thereto. Any additional

taxes levied against the building as a result of the phase-out of the

exemption provided by this section may be charged by the owner to the

tenants on an equitable basis without seeking the approval of the local

rent guidelines board. For the purposes of this section, construction

shall be deemed commenced when excavation has begun in good faith on the

basis of approved construction plans.

3. Application forms for exemption under this section shall be filed

with the assessor between February first and March fifteenth, and, based

on the certification of the local rent guidelines board, the assessors

shall certify to the collecting officer the amount of taxes to be

abated. No such application shall be accepted by the assessors unless

accompanied by a certificate of the local rent guidelines board

certifying the applicant's eligibility pursuant to subdivision one of

this section. Requests to these local rent guidelines boards for

certification shall be accompanied by a ten-year projection of the rents

based on current levels of operating costs and showing to the

satisfaction of such board a relative stability of rents over such

period reflecting to the extent that this is practicable, and averaging

of the tax benefits of this section in the interests of the tenants.

The state division of housing and community renewal may promulgate rules

and regulations to carry out the provisions of this section, not

inconsistent with the provisions hereof.