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

§ 421-g. Exemption from local taxation of certain multiple dwellings.

1. When used in this section:

(a) "Aggregate floor area" shall mean the sum of the gross areas of

the several floors of a building, measured from the exterior faces of

exterior walls or from the center lines of walls separating two

buildings.

(b) "Applicant" shall mean any person obligated to pay real property

taxes on the property for which an exemption from or abatement of real

property taxes under this section is sought or in the case of exempt

property, the record owner or lessee thereof.

(c) "Benefit period" shall mean the period of time when a recipient is

eligible to receive benefits pursuant to subdivisions two and three of

this section.

(d) "Certificate of eligibility" shall mean the document issued by the

department of housing preservation and development certifying a tax lot

as eligible for benefits pursuant to this section.

(e) "Commencement of conversion" shall mean the date of issuance by

the department of buildings of a building permit for the conversion of a

non-residential building to an eligible multiple dwelling, provided

however that such permit is issued on or after July first, nineteen

hundred ninety-five and no later than June thirtieth, two thousand six.

(f) "Completion of conversion" shall mean the date of issuance by the

department of buildings of a temporary or permanent certificate of

occupancy for the portion of the building for which an application for a

certificate of eligibility is filed.

(g) "Eligible area" shall mean any area of a city having a population

of one million or more persons in which, subject to the applicable law

governing zoning in such city, tax benefits pursuant to this section for

eligible multiple dwellings are available, provided, however, that in

the city of New York, subject to the applicable law governing zoning in

such city, the eligible area in which tax benefits pursuant to this

section for eligible multiple dwellings are available shall mean the

area in the borough of Manhattan bounded by Murray Street on the north

starting at the intersection of West Street and Murray Street; running

easterly along the center line of Murray Street; connecting through City

Hall Park with the center line of Frankfort Street and running easterly

along the center lines of Frankfort and Dover Streets to the

intersection of Dover Street and South Street; running southerly along

the center line of South Street to Peter Minuit Plaza; connecting

through Peter Minuit Plaza to the center line of State Street and

running northwesterly along the center line of State Street to the

intersection of State Street and Battery Place; running westerly along

the center line of Battery Place to the intersection of Battery Place

and West Street; and running northerly along the center line of West

Street to the intersection of West Street and Murray Street.

(h) "Eligible multiple dwelling" shall mean a class A multiple

dwelling, except a hotel, created from conversion of a non-residential

building, provided, however, that such multiple dwelling is located

within an eligible area, and provided further, however, that the

aggregate floor area of commercial, community facility and accessory use

space within such multiple dwelling does not exceed twenty-five per

centum of the aggregate floor area of such multiple dwelling.

(i) "Non-residential building" shall mean a structure or portion of a

structure having at least one floor, a roof and at least three walls

enclosing all or most of the space used in connection with the structure

or portion of the structure, which has a certificate of occupancy for

commercial, manufacturing or other non-residential use for not less than

ninety per centum of the aggregate floor area of such structure or

portion of such structure, or other proof of such non-residential use as

is acceptable to the department of housing preservation and development.

(j) "Person" shall mean an individual, corporation, limited liability

company, partnership, association, agency, trust, estate, foreign or

domestic government or subdivision thereof, or other entity.

(k) "Recipient" shall mean an applicant to whom a certificate of

eligibility has been issued pursuant to this section, or the successor

in interest of such applicant, provided that where a person who has

entered into a lease or purchase agreement with the owner or lessee of

exempt property has been a co-applicant, such person or the successor in

interest of such person shall be the recipient.

2. (a) Within a city having a population of one million or more

persons, a tax lot containing an eligible multiple dwelling that is the

subject of a certificate of eligibility issued pursuant to this section

shall be exempt from real property taxation for local purposes, other

than assessments for local improvements, on the amount of the assessed

value attributable exclusively to the physical improvement, for a period

not to exceed twelve consecutive years beginning in the tax year

immediately following the issuance of a certificate of eligibility, so

long as such eligible multiple dwelling is used or held out for use for

dwelling purposes, except as otherwise provided herein. During the first

eight years, the exemption shall equal the amount of the assessed value

attributable exclusively to the physical improvement. During the ninth

year, the exemption shall equal eighty per centum of such amount; during

the tenth year, the exemption shall equal sixty per centum of such

amount; during the eleventh year, the exemption shall equal forty per

centum of such amount; and during the twelfth year, the exemption shall

equal twenty per centum of such amount.

The following table shall illustrate the computation of the exemption

pursuant to this paragraph:

Tax Year Following Percentage of

Date of Issuance of Applicable

Certificate of Eligibility Exemption

1 100%

2 100%

3 100%

4 100%

5 100%

6 100%

7 100%

8 100%

9 80%

10 60%

11 40%

12 20%

(b) Notwithstanding paragraph (a) of this subdivision, within a city

having a population of one million or more persons, a tax lot containing

an eligible multiple dwelling that is the subject of a certificate of

eligibility issued pursuant to this section and that is in a building

that, in accordance with procedures set forth in local law, was

designated as a landmark before completion of conversion shall be exempt

from real property taxation for local purposes, other than assessments

for local improvements, on the amount of the assessed value attributable

exclusively to the physical improvement, for a period not to exceed

thirteen consecutive years beginning in the tax year immediately

following the issuance of a certificate of eligibility, so long as such

eligible multiple dwelling is used or held out for use for dwelling

purposes, except as otherwise provided herein. During the first nine

years, the exemption shall equal the amount of the assessed value

attributable exclusively to the physical improvement. During the tenth

year, the exemption shall equal eighty per centum of such amount; during

the eleventh year, the exemption shall equal sixty per centum of such

amount; during the twelfth year, the exemption shall equal forty per

centum of such amount; and during the thirteenth year, the exemption

shall equal twenty per centum of such amount.

The following table shall illustrate the computation of the exemption

pursuant to this paragraph:

Tax Year Following Percentage of

Date of Issuance of Applicable

Certificate of Eligibility Exemption

1 100%

2 100%

3 100%

4 100%

5 100%

6 100%

7 100%

8 100%

9 100%

10 80%

11 60%

12 40%

13 20%

2-a. Within a city having a population of one million or more persons,

a tax lot containing a non-residential building shall be exempt from

real property taxation for local purposes, other than assessments for

local improvements, on the amount of the assessed value attributable

exclusively to the physical improvement, for the tax year immediately

following the first taxable status date that meets the following two

conditions: (i) such taxable status date occurs after the commencement

of conversion and (ii) such taxable status date is the first taxable

status date on which an increase in assessed value attributable to such

physical improvement has been assessed. Notwithstanding the foregoing

sentence, no such exemption shall be granted if completion of conversion

occurs before the fifteenth day of April following such taxable status

date. In the event that an exemption granted pursuant to this

subdivision is not reflected on the final assessment roll prepared on

the basis of such taxable status date, the commissioner of finance is

hereby authorized to refund or credit in the fiscal year relating to

such taxable status date or in the next following fiscal year an amount

equivalent to the exempt amount multiplied by the applicable tax rate.

In addition to any other basis for revocation of an exemption granted

pursuant to this section, the exemption granted pursuant to this

subdivision to a non-residential building shall be revoked if such

building is not converted into an eligible multiple dwelling that is the

subject of a certificate of eligibility issued pursuant to this section.

3. (a) Within a city having a population of one million or more

persons, in addition to the benefits set forth in subdivision two of

this section, a tax lot containing an eligible multiple dwelling that is

the subject of a certificate of eligibility issued pursuant to this

section shall receive an abatement of real property taxes for a period

not to exceed fourteen consecutive years beginning in the tax year

immediately following the issuance of a certificate of eligibility, so

long as such eligible multiple dwelling is used or held out for use for

dwelling purposes, except as otherwise provided herein. During the first

year, the abatement shall be equal to the amount of the real property

tax that would have been due but for such abatement, provided, however,

that if the tax lot, during the first year of such abatement, was fully

or partially exempt from real property taxes, other than pursuant to the

exemption authorized by this section, then the abatement shall equal the

amount of the real property tax that would have been due but for such

full or partial exemption. During the second through tenth years, the

abatement shall equal one hundred per centum of such amount; during the

eleventh year, the abatement shall equal eighty per centum of such

amount; during the twelfth year, the abatement shall equal sixty per

centum of such amount; during the thirteenth year, the abatement shall

equal forty per centum of such amount; and during the fourteenth year,

the abatement shall equal twenty per centum of such amount.

The following table shall illustrate the computation of the abatement

pursuant to this paragraph:

Tax Year Following Percentage of

Date of Issuance of Applicable

Certificate of Eligibility Abatement

1 100%

2 100%

3 100%

4 100%

5 100%

6 100%

7 100%

8 100%

9 100%

10 100%

11 80%

12 60%

13 40%

14 20%

(b) Notwithstanding paragraph (a) of this subdivision, within a city

having a population of one million or more persons, in addition to the

benefits set forth in subdivision two of this section, a tax lot

containing an eligible multiple dwelling that is the subject of a

certificate of eligibility issued pursuant to this section and that is

in a building that, in accordance with procedures set forth in local

law, was designated as a landmark before completion of conversion shall

receive an abatement of real property taxes for a period not to exceed

fifteen consecutive years beginning in the tax year immediately

following the issuance of a certificate of eligibility, so long as such

eligible multiple dwelling is used or held out for use for dwelling

purposes, except as otherwise provided herein. During the first year,

the abatement shall be equal to the amount of the real property tax that

would have been due but for such abatement, provided, however, that if

the tax lot, during the first year of such abatement, was fully or

partially exempt from real property taxes, other than pursuant to the

exemption authorized by this section, then the abatement shall equal the

amount of the real property tax that would have been due but for such

full or partial exemption. During the second through eleventh years, the

abatement shall equal one hundred per centum of such amount; during the

twelfth year, the abatement shall equal eighty per centum of such

amount; during the thirteenth year, the abatement shall equal sixty per

centum of such amount; during the fourteenth year, the abatement shall

equal forty per centum of such amount; and during the fifteenth year,

the abatement shall equal twenty per centum of such amount.

The following table shall illustrate the computation of the abatement

pursuant to this paragraph:

Tax Year Following Percentage of

Date of Issuance of Applicable

Certificate of Eligibility Abatement

1 100%

2 100%

3 100%

4 100%

5 100%

6 100%

7 100%

8 100%

9 100%

10 100%

11 100%

12 80%

13 60%

14 40%

15 20%

(c) If, as a result of application to the tax commission or a court

order or action by the department of finance, the billable assessed

value is reduced, the department of finance shall recalculate the

abatement utilizing such reduced billable assessed value. The amount

equal to the difference between the abatement originally granted and the

abatement as so recalculated shall be deducted from any refund otherwise

payable or remission otherwise due as a result of such reduction in

billable assessed value, and any balance of such amount remaining unpaid

after making any such deduction shall be paid to the department of

finance within thirty days from the date of mailing by the department of

finance of a notice of the amount payable. Such amount payable shall

constitute a tax lien on the eligible multiple dwelling as of the date

of such notice and, if not paid within such thirty-day period, penalty

and interest at the rate applicable to delinquent taxes on such eligible

multiple dwelling shall be charged and collected on such amount from the

date of such notice to the date of payment.

4. If the aggregate floor area of commercial, community facility and

accessory use space exceeds twelve per centum of the aggregate floor

area of any building receiving benefits pursuant to this section, the

benefits provided pursuant to this section shall be equal to the amount

provided by subdivisions two, two-a and three of this section, reduced

by a percentage equal to the difference between the per centum of the

aggregate floor area that is commercial, community facility and

accessory use space and twelve per centum, provided, however, that if

the aggregate floor area of such building contains more than twenty-five

per centum of commercial, community facility and accessory use space no

benefits shall be available pursuant to this section. In calculating

aggregate floor area for purposes of subdivision two-a of this section,

"aggregate floor area" shall mean the intended aggregate floor area

after completion of conversion, as set forth in the building plans filed

with the department of buildings. If, after completion of conversion,

the actual aggregate floor area of commercial, community facility and

accessory use space is greater than the intended aggregate floor area of

such space and the actual aggregate floor area of such space exceeds

twelve per centum of the actual aggregate floor area, then the benefits

granted pursuant to subdivision two-a of this section shall be revoked

or partially revoked, as required, to reflect the actual aggregate floor

area of such space. If a building contains a separately assessed

non-residential parcel, the aggregate floor area of such parcel shall

not be considered in calculating the aggregate floor area of commercial,

community facility and accessory use space relevant to determining

eligibility for, and amount of, benefits pursuant to this section. For

the purposes of this section, accessory use space shall not include home

occupation space or accessory parking space located not more than

twenty-three feet above the curb level.

5. Benefits under this section may not be combined with benefits under

any other section of this chapter for the same tax lot.

6. Notwithstanding the provisions of any local law for the

stabilization of rents in multiple dwellings or the emergency tenant

protection act of nineteen seventy-four, the rents of each dwelling unit

in an eligible multiple dwelling shall be fully subject to control under

such local law, unless exempt under such local law from control by

reason of the cooperative or condominium status of the dwelling unit,

for the entire period for which the eligible multiple dwelling is

receiving benefits pursuant to this section, provided, however, that for

purposes of this subdivision, an eligible multiple dwelling receiving

benefits pursuant to this section whose benefits are suspended,

terminated or revoked by the department of housing preservation and

development shall be deemed to be receiving benefits for the length of

time such benefits would have been received if such benefits had not

been suspended, terminated or revoked, or for the period such local law

is in effect, whichever is shorter. Thereafter, such rents shall

continue to be subject to such control, except that such rents that

would not have been subject to such control but for this subdivision,

shall be decontrolled if the landlord has included in each lease and

renewal thereof for such unit for the tenant in residence at the time of

such decontrol a notice in at least twelve point type informing such

tenant that the unit shall become subject to such decontrol upon the

expiration of benefits pursuant to this section.

7. (a) In a non-residential building of less than one hundred thousand

square feet of aggregate floor area, completion of conversion to an

eligible multiple dwelling of at least seventy-five per centum of the

aggregate floor area of such non-residential building must take place

within three years of commencement of conversion.

(b) Only the aggregate floor area for which conversion is completed

within such three-year period shall be considered in calculating the

exemption and abatement provided pursuant to this section.

(c) In a non-residential building of less than one hundred thousand

square feet of aggregate floor area containing a separately assessed

non-residential parcel, the aggregate floor area of such separately

assessed non-residential parcel shall not be considered in determining

whether seventy-five per centum of the aggregate floor area of such

non-residential building has been converted to an eligible multiple

dwelling.

8. (a) In a non-residential building of one hundred thousand square

feet or more of aggregate floor area, completion of conversion to an

eligible multiple dwelling of at least seventy-five per centum of the

aggregate floor area of such non-residential building must take place

within five years of commencement of conversion, provided, however, that

completion of conversion to an eligible multiple dwelling of at least

fifty per centum of the aggregate floor area of such non-residential

building must take place within three years of commencement of

conversion, and provided further that proof of completion of partial

conversion within three years shall be submitted with an application for

a certificate of eligibility for full exemption and abatement benefits

pursuant to this section.

(b) In a non-residential building of one hundred thousand square feet

or more of aggregate floor area in which completion of conversion to an

eligible multiple dwelling of at least fifty per centum of the aggregate

floor area of such non-residential building has taken place within three

years of commencement of conversion, and which is the subject of a

certificate of eligibility for partial exemption and partial abatement

issued pursuant to this section, partial exemption and partial abatement

of real property taxes shall be available, as follows: (i) partial

exemption benefits shall equal the amount of the assessed value

attributable exclusively to the physical improvement resulting from the

conversion of at least fifty per centum of the aggregate floor area of

the non-residential building that has received a temporary certificate

of occupancy and (ii) partial abatement benefits shall be equal to the

amount of the real property tax that would have been due during the

first year of such partial abatement but for such partial abatement upon

the amount of square feet of aggregate floor area of the non-residential

building that has received a temporary certificate of occupancy for

conversion of at least fifty per centum of the aggregate floor area of

the non-residential building, provided, however, that if the tax lot,

during the first year of such partial abatement was fully or partially

exempt from real property taxes, other than pursuant to the exemption

authorized by this section, then the partial abatement shall be equal to

the amount of real property tax that would have been due upon such

amount of square feet of aggregate floor area of the non-residential

building but for such full or partial exemption. Nothing in this

paragraph shall be deemed to require an applicant to apply for partial

exemption or abatement benefits pursuant to this section, provided,

however, that if an applicant applies for a certificate of eligibility

for such benefits, he or she shall submit proof of completion of partial

conversion with the application for such certificate.

(c) In a non-residential building of one hundred thousand square feet

or more of aggregate floor area only the aggregate floor area for which

conversion is completed within the five-year period specified in

paragraph (a) of this subdivision or, in the case of partial exemption

from or partial abatement of real property taxes, the three-year period

specified in paragraph (b) of this subdivision, shall be considered in

calculating the exemption and abatement provided pursuant to this

section, provided, however, that neither partial exemption from nor

partial abatement of real property taxes shall be available for

commercial, community facility or accessory use space.

(d) In a non-residential building of one hundred thousand square feet

or more of aggregate floor area containing a separately assessed

non-residential parcel, the aggregate floor area of such separately

assessed non-residential parcel shall not be considered in determining

whether seventy-five per centum or, in the case of partial exemption

from or partial abatement of real property taxes, fifty per centum of

the aggregate floor area of such non-residential building has been

converted to an eligible multiple dwelling.

(e) Any partial exemption from or partial abatement of real property

taxes granted pursuant to this section for a non-residential building of

one hundred thousand square feet or more of aggregate floor area shall

be revoked if completion of conversion to an eligible multiple dwelling

of at least seventy-five per centum of the aggregate floor area of such

non-residential building has not taken place within five years of

commencement of conversion.

(f) The time periods specified in subdivisions two and three of this

section shall begin upon receipt of any partial exemption from or

partial abatement of real property taxes for a non-residential building

of one hundred thousand square feet or more of aggregate floor area.

9. (a) An application for a certificate of eligibility for full

exemption and abatement benefits pursuant to this section shall be filed

with the department of housing preservation and development no later

than close of business day on the thirty-first day of March immediately

following the first taxable status date following completion of

conversion. If a certificate of eligibility for partial exemption and

abatement benefits pursuant to this section is sought by an applicant,

an application for a certificate of eligibility for such benefits shall

be filed with the department of housing preservation and development no

later than close of business day on the thirty-first day of March

immediately following the first taxable status date following completion

of partial conversion. The department of housing preservation and

development shall issue a certificate of eligibility for benefits upon

determining that the applicant satisfies the requirements of this

section.

(b) In addition to any other information required by the department of

housing preservation and development, an application for a certificate

of eligibility for benefits under this section shall state that the

applicant agrees to comply with and be subject to rules promulgated by

the department of finance and the department of housing preservation and

development to secure compliance with this section and all applicable

local, state and federal laws. Such application shall also certify that

all taxes, water charges and sewer rents currently due and owing on the

property which is the subject of the application have been paid or are

currently being paid in timely installments pursuant to written

agreement with the department of finance or other appropriate agency.

(c) The burden of proof shall be on the applicant to show by clear and

convincing evidence that the requirements for granting benefits under

this section have been satisfied. The department of housing preservation

and development shall have the authority to require that statements in

connection with the application shall be made under oath.

(d) The department of finance and the department of housing

preservation and development may promulgate rules to carry out the

purposes of this section, including, but not limited to, rules providing

for such administrative charges or fees as are necessary to defray

expenses in administering the benefit program provided pursuant to this

section and rules defining, or expanding upon the definition of, terms

used in this section.

10. Any tax lot which is partly located inside the eligible area shall

be deemed to be entirely located inside such area.

11. No benefits pursuant to this section shall be granted for any

conversion to an eligible multiple dwelling unless the applicant shall

file, together with the application for a certificate of eligibility, an

affidavit setting forth the following information:

(a) a statement that within the seven years immediately preceding the

date of application for a certificate of eligibility, neither the

applicant, nor any person owning a substantial interest in the property

as defined in paragraph (c) of this subdivision, nor any officer,

director or general partner of the applicant or such person was finally

adjudicated by a court of competent jurisdiction to have violated

section two hundred thirty-five of the real property law or any section

of article one hundred fifty of the penal law or any similar arson law

of another jurisdiction with respect to any building, or was an officer,

director or general partner of a person at the time such person was

finally adjudicated to have violated such law; and

(b) a statement setting forth any pending charges alleging violation

of section two hundred thirty-five of the real property law or any

section of article one hundred fifty of the penal law or any similar

arson law of another jurisdiction with respect to any building by the

applicant or any person owning a substantial interest in the property as

defined in paragraph (c) of this subdivision, or any officer, director

or general partner of the applicant or such person, or any person for

whom the applicant or person owning a substantial interest in the

property is an officer, director or general partner.

(c) "Substantial interest" as used in this subdivision and subdivision

twelve of this section shall mean ownership and control of an interest

of ten per centum or more in property or any person owning a property.

12. (a) If any person described in the statement required by paragraph

(b) of subdivision eleven of this section or paragraph (b) of this

subdivision is finally adjudicated by a court of competent jurisdiction

to be guilty of any charge listed in such statement, the recipient shall

cease to be eligible for benefits pursuant to this section and shall

pay, with interest, any taxes for which benefits were claimed pursuant

to this section.

(b) The recipient shall, on the certificate of continuing use, state

whether any charges alleging violation by the recipient or any person

owning a substantial interest in the property, or any officer, director

or general partner of the recipient or person owning a substantial

interest in the property, or any person for whom the recipient or person

owning a substantial interest in the property is an officer, director or

general partner, of section two hundred thirty-five of the real property

law or any section of article one hundred fifty of the penal law or any

similar arson law of another jurisdiction, are pending. For purposes of

this paragraph, "substantial interest" shall have the same meaning as

set forth in paragraph (c) of subdivision eleven of this section.

13. In addition to any other qualifications for benefits pursuant to

this section, an applicant must be:

(a) obligated to pay real property tax on the property for which

benefits are sought, whether such obligation arises because of record

ownership of such property, or because the obligation to pay such tax

has been assumed by contract; or

(b) the record owner or lessee of property which is exempt from real

property taxation who has entered into an agreement to sell or lease

such property to another person. Such person shall be a co-applicant

with such owner or lessee.

14. A co-applicant with a public entity shall be eligible to receive

benefits pursuant to this section, provided that for such period as the

property which is the subject of the certificate of eligibility is

exempt from real property taxation because it is owned or controlled by

a public entity no benefits shall be available to such recipient

pursuant to this section. Such recipient shall receive benefits pursuant

to this section when such property ceases to be eligible for exemption

pursuant to other provisions of law, as follows: the recipient shall,

commencing with the date such tax exemption ceases, and continuing until

the expiration of the benefit period pursuant to this section, receive

the benefits to which such recipient is entitled in the corresponding

tax year pursuant to this section.

15. For the duration of the benefit period, the recipient shall file

annually with the department of housing preservation and development, on

or before the taxable status date, a certificate of continuing use. Such

certificate shall be on a form prescribed by the department of housing

preservation and development. The department of housing preservation and

development shall have the authority to require such information as it

deems necessary to determine whether the recipient has established

continuing eligibility for benefits. The department of housing

preservation and development shall have the authority to terminate

benefits pursuant to this section upon failure of the recipient to file

such certificate by the taxable status date. The burden of proof shall

be on the recipient to establish continuing eligibility for benefits and

the department of housing preservation and development may require that

statements made in such certificate shall be made under oath.

16. Any recipient whose property is the subject of a certificate of

eligibility for benefits pursuant to this section who converts aggregate

floor area within such property from the use authorized pursuant to this

section where such conversion results in less that seventy-five per

centum of the aggregate floor area of such property being used or held

out for use for dwelling purposes, or where such conversion results in

more than twenty-five per centum of such aggregate floor area being used

or held out for use for commercial, community facility or accessory use

space, or where such conversion in a building of one hundred thousand

square feet or more of aggregate floor area that has a certificate of

eligibility for a partial exemption or partial abatement pursuant to

subdivision eight of this section results in less than fifty per centum

of such aggregate floor area being used or held out for use for dwelling

purposes, shall cease to be eligible for benefits as of the last date

upon which the recipient met the requirements of this section and proves

by clear and convincing evidence that at least seventy-five per centum

of the aggregate floor area of the property was used or held out for use

for dwelling purposes, or twenty-five per centum or less of the

aggregate floor area of such property was used or held out for use for

commercial, community facility or accessory use space, or at least fifty

per centum of the aggregate floor area of such property in a building of

one hundred thousand square feet or more which is receiving partial

exemption or partial abatement benefits was used or held out for use for

dwelling purposes, respectively. Such recipient shall pay, with

interest, any taxes for which benefits were claimed after such date,

including the pro-rata share of tax for which any benefits were claimed

during the tax year in which the property was converted to a use not

eligible for benefits under this section.

17. All taxes plus interest required to be paid retroactively pursuant

to this section shall constitute a tax lien as of the date that it is

determined that such taxes and interest are owed. All interest shall be

calculated from the date the taxes would have been due but for the

benefits claimed pursuant to this section at three per centum above the

applicable rate of interest imposed by such city generally for

non-payment of real property tax with respect to such property for the

period in question.

18. (a) The department of housing preservation and development may

deny, reduce, suspend, terminate or revoke any exemption from or

abatement of tax payments pursuant to this section whenever: (i) a

recipient fails to comply with the requirements of this section or the

rules promulgated hereunder; or (ii) an application, certificate, report

or other document submitted by an applicant or recipient pursuant to

this section or the rules promulgated hereunder contains a false or

misleading statement as to a material fact or omits to state any

material fact necessary in order to make the statements therein not

false or misleading. The department of housing preservation and

development may declare any applicant or recipient referred to in

subparagraph (i) or (ii) of this paragraph to be ineligible for future

benefits pursuant to this section for the same or other property.

(b) Notwithstanding any other law to the contrary, a recipient shall

be personally liable for any taxes owed pursuant to this section

whenever such recipient fails to comply with this section or the rules

promulgated hereunder, or makes such false or misleading statement or

omission, and the department of housing preservation and development

determines that such act was due to the recipient's willful neglect, or

that under the circumstances such act constituted a fraud on the

department of housing preservation and development, or a buyer or

prospective buyer of the property. The remedy provided herein for an

action in personam shall be in addition to any other remedy or procedure

for the enforcement of collection of delinquent taxes provided by any

general, special or local law. Any lease provision which obligates a

tenant to pay taxes which become due because of willful neglect or fraud

by the recipient, or otherwise relieves or indemnifies the recipient

from any personal liability arising hereunder, shall be void as against

public policy except where the imposition of such taxes or liability is

occasioned by actions of the tenant in violation of the lease.

(c) In order to carry out the purposes of this section the department

of housing preservation and development may administer oaths to and take

the testimony of any person, including but not limited to the owner of

property which is the subject of an application for a certificate of

eligibility or a certificate of eligibility pursuant to this section and

issue subpoenas requiring the attendance of persons and the production

of such bills, books, papers or other documents as it shall deem

necessary.

(d) If, during the benefit period, any real property tax or water or

sewer charge due and payable with respect to property receiving an

exemption or abatement pursuant to this section shall remain unpaid for

at least one year following the date upon which such tax or charge

became due and payable, all exemptions and abatements granted pursuant

to this section with respect to such property shall be revoked, unless

within thirty days from the mailing of a notice of revocation by the

department of finance satisfactory proof is presented to the department

of finance that any and all delinquent taxes and charges owing with

respect to such property as of the date of such notice have been paid in

full or are currently being paid in timely installments pursuant to a

written agreement with the department of finance or other appropriate

agency. Any revocation pursuant to this paragraph shall be effective

with respect to real property tax which became due and payable following

the date of such revocation.