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

§ 421-m. Exemption of certain new or substantially rehabilitated

multiple dwellings from local taxation. 1. (a) A city, town or village

may, by local law, provide for the exemption of multiple dwellings

constructed or substantially rehabilitated in a benefit area designated

in such local law from taxation and special ad valorem levies, but not

special assessments, as provided in this section. Subsequent to the

adoption of such a local law, any other municipal corporation in which

the designated benefit area is located may likewise exempt such property

from its taxation and special ad valorem levies by local law, or in the

case of a school district, by resolution.

(b) As used in this section, the term "benefit area" means the area

within a city, town or village, designated by local law, to which an

exemption, established pursuant to this section, applies.

(c) The term "substantial rehabilitation" means all work necessary to

bring a property into compliance with all applicable laws and

regulations including but not limited to the installation, replacement

or repair of heating, plumbing, electrical and related systems and the

elimination of all hazardous and immediately hazardous violations in the

structure in accordance with state and local laws and regulations of

state and local agencies. Substantial rehabilitation may also include

reconstruction or work to improve the habitability or prolong the useful

life of the property; provided substantial rehabilitation shall not

include ordinary maintenance or repair.

(d) The term "multiple dwelling" means a dwelling, other than a hotel,

which is to be occupied or is occupied as the residence or home of three

or more families living independently of one another, whether such

dwelling is rented or owned as a cooperative or condominium.

2. (a) Eligible new or substantially rehabilitated multiple dwellings

in a designated benefit area shall be exempt according to the following

schedule:

CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF CERTAIN

MULTIPLE DWELLINGS

During construction or Exemption

substantial rehabilitation (maximum

three years) 100%

Following completion of work year:

1 through 12 100%

13-14 80%

15-16 60%

17-18 40%

19-20 20%

(b) 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

exemption. Provided further that no other exemption may be granted

concurrently to the same improvements under any other section of law.

3. To be eligible for exemption under this section:

(a) Such construction or substantial rehabilitation shall take place

on vacant, predominantly vacant or under-utilized land, or on land

improved with a non-conforming use or on land containing one or more

substandard or structurally unsound dwellings, or a dwelling that has

been certified as unsanitary by the local health agency.

(b) Such construction or substantial rehabilitation was commenced on

or after the effective date of the local law, ordinance or resolution

described in subdivision one of this section, but no later than June

fifteenth, two thousand nineteen.

(c) At least twenty percent of the units shall be affordable to

individuals or families of low and moderate income whose incomes at the

time of initial occupancy do not exceed ninety percent of the area

median income adjusted for family size and the individual or family

shall pay in rent or monthly carrying charges no more than thirty

percent of their adjusted gross income as reported in their federal

income tax return, or would be reported if such return were required,

less such personal exemptions and deductions and medical expenses as are

actually taken by the taxpayer, as verified according to procedures

established by the state division of housing and community renewal. Such

procedures shall be published through notice in the state register

without further action required for the promulgation of regulations

pursuant to the state administrative procedure act.

(d) Such construction or substantial rehabilitation is carried out

with the assistance of grants, loans or subsidies for the construction

or substantial rehabilitation of affordable housing from any federal,

state or local agency or instrumentality thereof.

4. Application for exemption under this section shall be made on a

form prescribed by the commissioner and filed with the assessor on or

before the applicable taxable status date.

5. In the case of property which is used partially as a multiple

dwelling and partially for commercial or other purposes, the property

shall be eligible for the exemption authorized by this section if:

(a) The square footage of the portion used as a multiple dwelling

represents at least fifty percent of the square footage of the entire

property;

(b) At least twenty percent of the units are affordable to individuals

or families of low and moderate income, as determined according to the

criteria set forth in paragraph (c) of subdivision three of this

section; and

(c) The requirements of this section are otherwise satisfied with

respect to the portion of the property used as a multiple dwelling.

6. The exemption authorized by this section shall not be available in

a jurisdiction to which the provisions of section four hundred

twenty-one-a or four hundred twenty-one-c of this article are

applicable.

7. A city, town or village providing an exemption pursuant to the

authority of this section shall develop an income monitoring and

compliance plan to meet the criteria of paragraph (c) of subdivision

three of this section and such plan shall be reviewed, evaluated and

approved by the state division of housing and community renewal as a

condition of providing such exemption. Such plan shall include an annual

certification that the multiple dwelling receiving an exemption meets

the requirements of this section. Such certification shall be provided

to the assessor and the state division of housing and community renewal.

If such requirements are not met, then the multiple dwelling shall not

qualify for the exemption in that year.