N.Y. Real Property Tax Law § 489: Exemption from taxation of alterations and improvements to multiple dwellings to eliminate fire and health hazards; abatement

§ 489. Exemption from taxation of alterations and improvements to

multiple dwellings to eliminate fire and health hazards; abatement. 1.

(a) Any city to which the multiple dwelling law is applicable, acting

through its local legislative body or other governing agency, is hereby

authorized and empowered, to and including January first, two thousand

twenty-two, to adopt and amend local laws or ordinances providing that

any increase in assessed valuation of real property shall be exempt from

taxation for local purposes, as provided herein, to the extent such

increase results from:

(1) conversion of buildings or structures on such property to class A

multiple dwellings not used in whole or in part for single room

occupancy, including conversion of residential units qualified for the

protection of article seven-C of the multiple dwelling law in buildings

classified as interim multiple dwellings pursuant to such article to

units which are in compliance with the standards of safety and fire

protection set forth in article seven-B of the multiple dwelling law or

to units which have a certificate of occupancy as class A multiple

dwellings; or

(2) alterations or improvements, including as improvements asbestos

abatement to the extent such asbestos abatement is required by federal,

state or local law, on such property to eliminate unhealthy or dangerous

conditions or to replace inadequate and obsolete sanitary facilities,

any of which represent fire or health hazards, in any existing class A

multiple dwellings or buildings consisting of one or two dwelling units

over space used for commercial occupancy, except insofar as the gross

cubic content of the building is increased thereby; or

(3) alterations or improvements on such property which are designed to

conserve the use of fuel, electricity or other such energy sources in

any dwellings or other buildings or structures described in clause one

or two of this paragraph; or

(4) alterations or improvements to the exterior walls of dwellings or

other buildings or structures on such property in order to comply with

any provision of law regulating dwellings, buildings, or structures that

are in an area designated as an historic or landmark area or that are

designated as historic or landmark buildings or structures; or

(5) alterations or improvements constituting a moderate rehabilitation

of a substantially occupied class A multiple dwelling within a city

having a population of one million or more as certified by the local

housing agency pursuant to local law or rules and regulations; or

(6) alterations or improvements constituting a substantial

rehabilitation of a class A multiple dwelling or a conversion of a

building or structure into a class A multiple dwelling as part of a

program to provide housing for low and moderate income households as

defined by the local housing agency pursuant to rules and regulations,

provided that such alterations or improvements or conversions shall be

aided by a grant, loan or subsidy from any federal, state or local

agency or instrumentality, including, in the discretion of the local

housing agency, a subsidy in the form of a below market sale.

Such conversion, alterations or improvements shall be completed within

thirty months after the date on which same shall be started except that

such thirty month limitation shall not apply to conversions of

residential units which are registered with the loft board in accordance

with article seven-C of the multiple dwelling law pursuant to

subparagraph one of this paragraph. Notwithstanding the foregoing, a

sixty month period for completion shall be available for alterations or

improvements undertaken by a housing development fund company organized

pursuant to article eleven of the private housing finance law, which are

carried out with the substantial assistance of grants, loans or

subsidies from any federal, state or local governmental agency or

instrumentality or which are carried out in a property transferred from

such city if alterations and improvements are completed within seven

years after the date of transfer. In addition, the local housing agency

is hereby empowered to grant an extension of the period of completion

for any project carried out with the substantial assistance of grants,

loans or subsidies from any federal, state or local governmental agency

or instrumentality, if such alterations or improvements are completed

within sixty months from commencement of construction. Provided,

further, that such conversion, alterations or improvements shall in any

event be completed prior to June thirtieth, two thousand twenty-two.

Exemption for conversions, alterations or improvements pursuant to

subparagraph one, two, three or four of this paragraph shall continue

for a period not to exceed fourteen years and begin no sooner than the

first quarterly tax bill immediately following the completion of such

conversion, alterations or improvements. Exemption for alterations or

improvements pursuant to this subparagraph or subparagraph five of this

paragraph shall continue for a period not to exceed thirty-four years

and shall begin no sooner than the first quarterly tax bill immediately

following the completion of such alterations or improvements. Such

exemption shall be equal to the increase in the valuation which is

subject to exemption in full or proportionally under this subdivision

for ten or thirty years, whichever is applicable. After such period of

time, the amount of such exempted assessed valuation of such

improvements shall be reduced by twenty percent in each succeeding year

until the assessed value of the improvements are fully taxable.

Provided, however, exemption for any conversion, alterations or

improvements which are aided by a loan or grant under article eight,

eight-A, eleven, twelve, fifteen or twenty-two of the private housing

finance law, section six hundred ninety-six-a or section ninety-nine-h

of the general municipal law, or section three hundred twelve of the

housing act of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the

Cranston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et.

seq.), or started after July first, nineteen hundred eighty-three by a

housing development fund company organized pursuant to article eleven of

the private housing finance law which are carried out with the

substantial assistance of grants, loans or subsidies from any federal,

state or local governmental agency or instrumentality or which are

carried out in a property transferred from any city and where

alterations and improvements are completed within seven years after the

date of transfer may commence at the beginning of any tax quarter

subsequent to the start of such conversion, alterations or improvements

and prior to the completion of such conversion, alterations or

improvements.

(b) Any city to which the multiple dwelling law is not applicable,

acting through its local legislative body or other governing agency, is

hereby authorized and empowered, to and including June first, nineteen

hundred seventy-two, to adopt and amend local laws or ordinances

providing that any increase in assessed valuation resulting from

alterations and improvements to eliminate presently existing unhealthy

or dangerous conditions in any multiple dwellings occupied, as a rule,

for permanent residence purposes or to replace inadequate and obsolete

sanitary facilities any of which represent fire or health hazards, in

such dwellings except insofar as the gross cubic content of the building

is increased thereby, shall be exempt from taxation for local purposes

for a period not to exceed twelve years after the taxable status date

immediately following the completion thereof, provided that the

alterations or improvements for which the benefits of any such law or

ordinance are claimed were started after March first, nineteen hundred

sixty-two, and completed within two years from the date on which they

were started and in any event prior to December thirty-first, nineteen

hundred seventy-four.

1-a. Notwithstanding the provisions of subdivision one of this

section, alterations, improvements or conversions of any building or

structure that are eligible for benefits pursuant to paragraph (a) of

subdivision one of this section except insofar as the gross cubic

content of such building or structure is increased thereby shall be

eligible for such benefits insofar as the gross cubic content of such

building or structure is increased thereby provided that:

(a) for all tax lots now existing or hereafter created, at least fifty

percent of the floor area of the completed building or structure

consists of the pre-existing building or structure that was converted,

altered or improved in accordance with paragraph (a) of subdivision one

of this section, and

(b) for tax lots in the city of New York now existing or hereafter

created within the following area in the borough of Manhattan, such

conversions, alterations or improvements are aided by a grant, loan or

subsidy from any federal, state or local agency or instrumentality:

beginning at the intersection of the United States pierhead line in the

Hudson river and the center line of Chambers street extended, thence

easterly to the center line of Chambers street and continuing along the

center line of Chambers street to the center line of Centre street,

thence southerly along the center line of Centre street to the center

line of the Brooklyn Bridge to the intersection of the Brooklyn Bridge

and the United States pierhead line in the East river, thence northerly

along the United States pierhead line in the East river to the

intersection of the United States pierhead line in the East river and

the center line of One Hundred Tenth street extended, thence westerly to

the center line of One Hundred Tenth street and continuing along the

center line of One Hundred Tenth street to its westerly terminus, thence

westerly to the intersection of the center line of One Hundred Tenth

street extended and the United States pierhead line in the Hudson river,

thence southerly along the United States pierhead line in the Hudson

river to the point of beginning. For purposes of this subdivision,

"floor area" shall have the same meaning as in paragraph b of

subdivision one of section four hundred twenty-one-a of this title.

Nothing in this subdivision shall be construed to provide benefits

pursuant to subdivision two of this section for the costs attributable

to the increased cubic content in any such building or structure.

2. (a) With respect to conversions, alterations or improvements

eligible to receive the benefits of subdivision one of this section, any

such local law or ordinance may also provide that the duration and

amount of abatement of taxes on such property, including the land, may

be separately established for each of the categories of eligibility

described in paragraph a of subdivision one of this section, provided

that:

(1) except as provided in subparagraphs two and three of this

paragraph, the annual abatement of taxes on such property, including the

land, shall not be an amount greater than eight and one-third per centum

of the total cost of such conversion, alterations or improvements nor

shall the abatement exceed the total cost of such conversions,

alterations or improvements or be effective for more than twenty years

and the annual abatement of taxes in any consecutive twelve-month period

shall in no event exceed the amount of taxes payable in such

twelve-month period;

(2) in the case of alterations or improvements (i) pursuant to

subparagraph five of paragraph (a) of subdivision one of this section

which are carried out with the substantial assistance of grants, loans

or subsidies from any federal, state or local agency or instrumentality

or any not-for-profit philanthropic organization one of whose primary

purposes is providing low or moderate income housing or financed with

mortgage insurance by the New York city residential mortgage insurance

corporation or the state of New York mortgage agency or pursuant to a

program established by the federal housing administration for

rehabilitation of existing multiple dwellings in a neighborhood strategy

area as defined by the United States department of housing and urban

development, or (ii) pursuant to subparagraph six of paragraph (a) of

subdivision one of this section the abatement of taxes on such property,

including the land, shall not exceed one hundred fifty per centum of the

certified reasonable cost of the alterations or improvements, as

determined under regulations of the local housing agency administering

the local law, and the annual abatement of taxes shall not exceed twelve

and one-half per centum of such certified reasonable cost, provided that

such abatement shall not be effective for more than twenty years and the

annual abatement of taxes in any consecutive twelve-month period shall

in no event exceed the amount of taxes payable in such twelve-month

period; or

(3) in the case of alterations or improvements carried out with the

substantial assistance of grants, loans or subsidies from any federal,

state or local agency or instrumentality or any not-for-profit

philanthropic organization one of whose primary purposes is providing

low or moderate income housing, or financed with mortgage insurance by

the New York city residential mortgage insurance corporation or the

state of New York mortgage agency or pursuant to program established by

the federal housing administration for rehabilitation of existing

multiple dwellings in a neighborhood strategy area as defined by the

United States department of housing and urban development where such

alterations or improvements are done on property located in census

tracts in which seventy-five percent or more of the population live in

households which earn fifty percent or less of the median household

income of the city in which such census tracts are located, the

abatement of taxes on such property, including the land, shall not

exceed one hundred fifty per centum of the certified reasonable cost of

the alterations or improvements, as determined under regulations of the

local housing agency administering the local law, and the annual

abatement of taxes shall not exceed twelve and one-half per centum of

such certified reasonable cost, provided that such abatement shall not

be effective for more than twenty years and the annual abatement of

taxes in any consecutive twelve-month period shall in no event exceed

the amount of taxes payable in such twelve month period.

(b) Such abatement:

(1) shall begin no sooner than the first quarterly tax bill

immediately following the completion of such conversion, alterations or

improvements, or

(2) in the case of any such conversion, alterations or improvements

(i) completed after December thirty-first, nineteen hundred seventy-five

and aided by a loan under article eight of the private housing finance

law, or (ii) started after July first, nineteen hundred seventy-seven

and aided by a loan under article fifteen of the private housing finance

law, or (iii) started after July first, nineteen hundred eighty and

aided by a loan under article eight-A of the private housing finance law

or (iv) started after July first, nineteen hundred eighty and aided by a

loan under section three hundred twelve of the housing act of nineteen

hundred sixty-four (42 U.S.C.A. 1452b), or (v) started after July first,

nineteen hundred ninety-two and aided by a loan or grant under article

eleven, twelve, or twenty-two of the private housing finance law,

section six hundred ninety-six-a or section ninety-nine-h of the general

municipal law, or the Cranston-Gonzalez national affordable housing act

(42 U.S.C.A. 12701 et. seq.), or (vi) started after July first, nineteen

hundred eighty-eight by or on behalf of a company not qualifying under

any of the above provisions which is a not-for-profit corporation

qualified pursuant to section 501(c)(3) of the Internal Revenue Code and

which has entered into a regulatory agreement with the local housing

agency requiring operation of the property as housing for low and

moderate income persons and families; may be commenced at the beginning

of any tax quarter subsequent to the start of such conversion,

alterations or improvements and prior to the completion of such

conversion, alterations or improvements.

3. Any such local law or ordinance may also provide that where the

improvements and alterations include or benefit that part of a building

which is not occupied for dwelling purposes, the increase in assessed

valuation and the cost of the alteration shall be apportioned so that

the benefits of the local law or ordinance shall not be provided for

improvements or alterations made for other than dwelling purposes.

4. Any such local law or ordinance may also provide that its benefits

shall not become available to any multiple dwelling, building or

structure as provided in paragraph (a) of subdivision one of this

section unless and until such multiple dwelling, building or structure

as provided in paragraph (a) of subdivision one of this section complies

with the applicable provisions of law. Any such law or ordinance may

make provision as to the date as of which particular improvements and

alterations shall be deemed to have been completed or commenced

therefor, as the case may be, for the purpose of qualifying for the

benefits thereof. Any such local law or ordinance may make provision

authorizing the adoption of rules and regulations by the local agencies

of government for the effectuation of the purposes of this section. Any

such local law or ordinance shall provide that the benefits of this

section shall apply to any multiple dwelling, building or structure as

provided in paragraph (a) of subdivision one of this section, which (i)

is operated exclusively for the benefit of persons or families who are

entitled to occupancy by reason of ownership of stock or membership in

the corporate owner, or for the benefit of such persons or families and

other persons or families entitled to occupancy under applicable

provisions of law without ownership of stock or membership in the

corporate owner, or (ii) is owned as a condominium and is occupied as

the residence or home of three or more families living independently of

each other; provided, however, that any such law or ordinance shall make

provision, in addition to all other conditions of eligibility for the

benefits of this section, except for multiple dwellings in which units

have been newly created by substantial rehabilitation of vacant

buildings or conversions of non-residential buildings, that the

availability of benefits under this section for such multiple dwellings,

buildings or structures shall be conditioned on the following: (1) any

items of work designated as a major capital improvement in the rules

adopted by the local housing agency or asbestos abatement to the extent

such asbestos abatement is required by federal, state or local law, and

(2) (i) the assessed valuation of such multiple dwelling, building, or

structure, including land, shall not exceed an average of forty thousand

dollars per dwelling unit at the time of the commencement of the

alterations or improvements, and (ii) the average per room sale price of

the dwelling units or the stock allocated to such dwelling units shall

have been no greater than thirty-five percent of the maximum mortgage

amount for a single family home eligible for purchase by the Federal

National Mortgage Association during the three years immediately

preceding the commencement of the alterations or improvements; provided

that if less than ten percent of the dwelling units or an amount of

stock less than the amount allocable to ten percent of such dwelling

units was not transferred during such preceding three year period,

eligibility for benefits shall be conditioned upon the multiple

dwelling, building, or structure having an assessed valuation per

dwelling unit of no more than forty thousand dollars at the time of the

commencement of the alteration or improvements. Notwithstanding the

foregoing, such local law shall also provide benefits under this section

for work completed in any such multiple dwelling, building or structure

within the first three years of its conversion to cooperative or

condominium ownership, as evidenced by the date on which the first

closing in a condominium to a bona fide purchaser occurs or in the case

of a cooperative, the date on which the shares allocable to a unit are

conveyed to a bona fide purchaser. Any such local law shall also limit

the maximum amount of tax abatement which may be received in any tax

period under this section by any such multiple dwelling, building or

structure for any alterations and improvements commenced three years or

more after its initial conversion to cooperative or condominium

ownership to an amount not in excess of two thousand five hundred

dollars per dwelling unit of the certified reasonable cost of the

alterations or improvements as determined under regulations of the local

housing agency administering the local law. Any such local law may also

require such certifications and consents to access to records, including

other tax records, as may be deemed appropriate to enforce such

conditions of eligibility. Any such local law or ordinance shall provide

that the local agencies of government shall establish maximum dollar

limits for specified items of cost for any conversion, alterations or

improvements. No costs in excess of such maximum dollar limits shall be

considered in determining the benefits of this section.

4-a. Notwithstanding any contrary provision of subdivision four of

this section, any such local law or ordinance shall provide that the

availability of benefits under this section to any multiple dwelling,

building or structure owned and operated by a limited-profit housing

company established pursuant to article two of the private housing

finance law shall not be conditioned upon the assessed valuation of such

multiple dwelling, building or structure, including land, as calculated

as an average dollar amount per dwelling unit, at the time of the

commencement of the alterations or improvements; provided, however, that

such limited-profit housing company (a) is organized and operating as a

mutual company, (b) continues to be organized and operating as a mutual

company and to own and operate the multiple dwelling, building or

structure receiving such benefits, and (c) has entered into a binding

and irrevocable agreement with the commissioner of housing of the state

of New York, the supervising agency, the New York city housing

development corporation, or the New York state housing finance agency

prohibiting the dissolution or reconstitution of such limited-profit

housing company pursuant to section thirty-five of the private housing

finance law for not less than fifteen years from the commencement of

such benefits. For the purposes of this subdivision, the terms "mutual

company" and "supervising agency" shall have the same meanings as set

forth in section two of the private housing finance law.

4-a-1. Notwithstanding any contrary provision of subdivision four of

this section, any such local law or ordinance shall provide that the

availability of benefits under this section to any multiple dwelling,

building or structure owned and operated by a redevelopment company

established pursuant to article five of the private housing finance law

shall not be conditioned upon the assessed valuation of such multiple

dwelling, building or structure, including land, as calculated as an

average dollar amount per dwelling unit, at the time of the commencement

of the alterations or improvements: provided, however, that such

redevelopment company (a) is organized and operating as a mutual

redevelopment company, (b) continues to be organized and operating as a

mutual redevelopment company and to own and operate the multiple

dwelling, building or structure receiving such benefits, and (c) has

entered into a binding and irrevocable agreement with the commissioner

of housing and community renewal, the supervising agency, the New York

city housing development corporation, or the New York state housing

finance agency prohibiting the dissolution or reconstitution of such

redevelopment company pursuant to section one hundred twenty-three of

the private housing finance law until the earlier to occur of: (i) in

fifteen years from the commencement of such benefits, or (ii) the

expiration of any tax exemption granted to such redevelopment company

pursuant to section one hundred twenty-five of the private housing

finance law. For the purposes of this subdivision, the terms "mutual"

and "supervising agency" shall have the same meanings as set forth in

section one hundred two of the private housing finance law.

4-b. Notwithstanding any contrary provision of the private housing

finance law, any such local law shall provide that the benefits of this

section shall apply to any limited profit housing company as provided in

this section. In addition to the limitations set forth in subdivision

eleven of this section, such multiple dwelling, building or structure

shall be eligible for benefits only where at least one building wide

improvement or alteration is part of the application for benefits.

Furthermore, to the extent that such alterations or improvements are

financed with grants, loans or subsidies from any federal, state, or

local agency or instrumentality, such multiple dwelling, building or

structure shall be eligible for benefits only if the limited profit

housing company has entered into a binding and irrevocable agreement

with the commissioner of housing of the state of New York, the

supervising agency, as such term is defined in section two of the

private housing finance law, the New York city housing development

corporation, or the New York state housing finance agency prohibiting

the dissolution or reconstitution of such limited profit housing company

pursuant to section thirty-five of the private housing finance law for

not less than fifteen years from the commencement of such benefits. The

abatement of taxes on such property, including the land, shall not be an

amount greater than ninety per centum of the certified reasonable cost

of such alterations or improvements, as determined under regulations of

the local housing agency administering the local law, nor greater than

eight and one-third percent of such certified reasonable cost in any

twelve month period, nor be effective for more than twenty years. The

annual abatement of taxes in any twelve month period shall in no event

exceed fifty percent of the amount of taxes payable in such twelve month

period pursuant to the applicable exemption granted pursuant to article

two of the private housing finance law or other applicable laws or fifty

percent of payments made in lieu of taxes in such twelve month period.

4-c. (a) Any such local law may also provide that a group of multiple

dwellings which was developed as a planned community and which is owned

as two separate condominiums containing a total of ten thousand or more

dwelling units shall be eligible for tax exemption and abatement as

provided in this subdivision.

(b) Any increase in assessed valuation resulting from alterations or

improvements to one or more multiple dwellings in a planned community

described in paragraph (a) of this subdivision shall be exempt from

taxation for local purposes. Such exemption shall be equal to the

increase in the valuation which is subject to exemption under this

paragraph for thirty years. After such period of time, the amount of

such exempted assessed value shall be reduced by twenty percent in each

succeeding year until the assessed value of the alterations or

improvements is fully taxable. Such exemption may commence at the

beginning of any tax quarter subsequent to the start of such alterations

or improvements. In no event shall such alterations or improvements

directly or indirectly result in an equalization increase in the

assessed valuation of any multiple dwelling forming part of the planned

community where such alterations or improvements are performed.

(c) The abatement of taxes on a planned community described in

paragraph (a) of this subdivision, including the land, shall not exceed

the greater of (i) one hundred fifty per centum of the certified

reasonable cost of the alterations or improvements, as determined under

the regulations of the local housing agency administering the local law,

and (ii) the construction cost of the alterations or improvements

identified in such regulations. Such abatement shall not be effective

for more than twenty years and the annual abatement of taxes in any

consecutive twelve-month period shall not be greater than ten per centum

of the total abatement granted and shall not exceed the amount of taxes

payable in such consecutive twelve-month period. Such abatement shall

begin no sooner than the first quarterly tax bill immediately following

the completion of such alterations or improvements. The limitations set

forth in subdivision four of this section for multiple dwellings,

buildings and structures owned as condominiums shall be inapplicable to

benefits granted pursuant to this subdivision. Abatement benefits

granted pursuant to this subdivision shall be apportioned among all of

the condominium tax lots within the condominium in which the alterations

or improvements are made, although such alterations or improvements may

have been made to one or fewer than all of the multiple dwellings

therein.

(d) In the event that multiple alterations or improvements are

undertaken in a planned community described in paragraph (a) of this

subdivision and separate applications for benefits therefor are made,

all requirements concerning physical condition of and compliance with

law by the multiple dwellings in such planned community shall apply only

upon completion of all such alterations or improvements, provided that

all such alterations or improvements are completed within six years.

(e) Except as provided in this subdivision, all of the requirements

imposed by this section on projects described in paragraph (a) of

subdivision one of this section shall be applicable to alterations or

improvements granted benefits pursuant to this subdivision.

(f) This subdivision shall be applicable only to alterations or

improvements completed prior to December thirty-first, two thousand

five.

5. To the end that conversions, alterations, and improvements aided by

this section shall interfere as little as practicable with urgently

needed public improvements or the clearance, rehabilitation, or

rebuilding of substandard and unsanitary areas, and shall be confined to

multiple dwellings, buildings or structures as provided in paragraph (a)

of subdivision one of this section which are structurally sound, such

local law or ordinance may provide that exemption or abatement from

taxation hereunder shall be restricted to multiple dwellings, buildings

or structures as provided in paragraph (a) of subdivision one of this

section (a) which the local planning commission in any such city shall

certify will not interfere with projected public improvements or the

clearance and rebuilding of substandard and insanitary areas, and (b)

which the local building department certifies to be structurally sound

and (c) which, if in an area approved for clearance, replanning,

reconstruction or neighborhood rehabilitation pursuant to chapter eight

hundred eighty-seven of the laws of nineteen hundred forty-five, as from

time to time amended, or if in an area designated for studies, tests,

demonstrations and other activities for the prevention and elimination

of slums and urban blight pursuant to chapter six hundred eight of the

laws of nineteen hundred fifty-six as from time to time amended, or if

in an area for which a preliminary or final plan has been approved

pursuant to chapters six hundred eighty-eight of the laws of nineteen

hundred fifty-seven or nine hundred twenty-four of the laws of nineteen

hundred fifty-eight, as from time to time amended, or chapter nine

hundred seventy-one of the laws of nineteen hundred sixty, or if in an

area for which an urban renewal plan or tests, studies or demonstrations

have been approved pursuant to article fifteen of the general municipal

law, is certified by the project board for the area as a dwelling which

is to be or has been improved in conformity with such replanning,

reconstruction, neighborhood improvement, studies, tests, demonstrations

or plan.

6. Notwithstanding the provisions of the multiple dwelling law,

multiple residence law, and any local law, ordinance, rule or

regulation, any city to which this section is applicable acting through

its local legislative body may provide, in a manner that shall be

uniform as to any particular type or class of multiple dwelling,

building or structure as provided in paragraph (a) of subdivision one of

this section, that, any multiple dwelling, building or structure as

provided in paragraph (a) of subdivision one of this section to which

alterations and improvements are made pursuant to this section and which

did not require a certificate of occupancy on April second, nineteen

hundred forty-five, and, in the case of multiple dwellings, buildings or

structures as provided in paragraph (a) of subdivision one of this

section to which the multiple residence law is applicable, on July

first, nineteen hundred fifty-two, may not be occupied lawfully after

such date upon the completion of such alterations and improvements

without a certificate of occupancy.

7. Any local law or ordinance may also provide any or all of the

following:

(a) The benefits of this section shall not apply to any multiple

dwelling, building or structure as provided in paragraph (a) of

subdivision one of this section in which rents, subsequent to

alterations and improvements, shall exceed such amount, if any, as may

be fixed by the local legislative body or by the municipal agency

designated by the local legislative body of the municipality involved,

based upon a standard formula.

(b) (1) The benefits of this section shall not apply to any multiple

dwelling, building or structure as provided in paragraph (a) of

subdivision one of this section which is not subject to the provisions

of the emergency housing rent control law or to local law enacted

pursuant to the local emergency housing rent control act, where the

local legislative body or other governing agency of the municipality

involved shall prescribe that the benefits herein provided shall not

apply to such multiple dwelling, building or structure as provided in

paragraph (a) of subdivision one of this section provided that such

local legislative body or other governing agency shall not use the

authority conferred in this paragraph (b) to rescind any benefits

granted under former section five-h of the tax law prior to July first,

nineteen hundred fifty-eight; and further provided that where the

benefits provided herein or under such former section five-h of the tax

law are granted or had been granted on or after July first, nineteen

hundred fifty-eight, to any multiple dwelling, building or structure

which is decontrolled subsequent to the granting of such benefits, the

local legislative body or other governing agency may withdraw such

benefits from such dwelling.

(2) Any dwelling unit subject to rent regulation on or before the

effective date of this subparagraph as a result of receiving a tax

exemption or abatement pursuant to this section shall be subject to such

regulation until the occurrence of the first vacancy of such unit after

such benefits are no longer being received at which time such unit shall

be deregulated or if each lease and renewal thereof for such unit for

the tenant in residence at the time of the expiration of the tax benefit

period has included a notice in at least twelve point type informing

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

expiration of such tax benefit period and states the approximate date on

which such tax benefit period is scheduled to expire, such dwelling unit

shall be deregulated as of the end of the tax benefit period; unless

such unit would have been subject to regulation under the rent

stabilization law of nineteen hundred sixty-nine or the emergency tenant

protection act of nineteen seventy-four.

(c) The benefits of this section shall apply to any multiple dwelling,

building or structure as provided in paragraph (a) of subdivision one of

this section occupied, as a rule, for permanent residence purposes and

which is not used in whole or in part for single room occupancy and

which is not subject to the provisions of the emergency housing rent

control law or to local law enacted pursuant to the local emergency

housing rent control act, provided that it is located within an area

which has been designated by the local planning commission under the

provisions of section seventy-two-m of article fifteen of the general

municipal law or where a program of local neighborhood improvement or

housing maintenance is being carried out under the supervision or with

the assistance of the local government and provided that the rents or

carrying charges, subsequent to alterations and improvements, (1) shall

not exceed such amount, if any, as may be fixed by the local legislative

body or by the municipal agency designated by the local legislative body

of the municipality involved, based upon a standard formula, or (2)

where the local legislative body so provides, shall not exceed such

amount, if any, as may be fixed for such multiple dwelling, building or

structure as provided in paragraph (a) of subdivision one of this

section pursuant to any local law enacted pursuant to the local

emergency housing rent control act, and further provided that prior to

such alterations and improvements, the multiple dwelling, building or

structure as provided in paragraph (a) of subdivision one of this

section, if a multiple dwelling, was either a multiple dwelling

occupied, as a rule, as a temporary or transient residence or occupied,

as a rule, for permanent residence purposes and used in whole or in part

for single room occupancy.

(d) The benefits of this section shall apply to any building or

structure as provided in paragraph (a) of subdivision one of this

section, provided that the rents or carrying charges subsequent to

conversion (1) shall not exceed such amount, if any, as may be fixed by

the local legislative body or by the municipal agency designated by the

local legislative body of the municipality involved, based upon a

standard formula, or (2) where the local legislative body so provides,

shall not exceed such amount, if any, as may be fixed for such dwelling

pursuant to any local law enacted pursuant to the local emergency

housing rent control act.

8. Notwithstanding any other provision of this section the benefits of

this section shall not apply to any private dwelling unless it is in an

area defined by clause (c) of subdivision five of this section and is

certified by the project board for the area as a dwelling which is to be

or has been improved in conformity with such replanning, reconstruction,

neighborhood improvement, studies, tests, demonstrations or plan.

Notwithstanding the foregoing, for purposes of this section and any

local law enacted pursuant hereto a class A multiple dwelling may be

deemed to include any garden-type maisonette dwelling project consisting

of a series of dwelling units which together and in their aggregate were

arranged or designed to provide three or more apartments and are

provided as a group collectively with all essential services such as,

but not limited to, water supply, house sewers and heat, and which are

in existence and operated as a unit under single ownership on the date

upon which an application for the benefits of this section is received

by the city, even though certificates of occupancy were issued for

portions thereof as private dwellings.

8-a. Notwithstanding the provisions of subdivision eight of this

section to the contrary, unless excluded by local law, the benefits of

this section may apply to: (i) alterations or improvements to any

private dwelling; (ii) conversion of any private dwelling to a multiple

dwelling; or (iii) conversion of any multiple dwelling to a private

dwelling, provided that such alterations, improvements or conversion are

part of a project which has applied for or is receiving benefits

pursuant to this section and shall be aided by a grant loan, or subsidy

from any federal, state, or local agency or instrumentality.

9. (a) During the period of such exemptions the assessment on any such

land and dwelling after such alterations and improvements, exclusive of

the increase in valuation which is subject to exemption in full or

proportionally under subdivision one of this section, shall not exceed

the valuation of the previously existing dwelling appearing on the

assessment rolls after the taxable status date immediately preceding the

commencement of such alterations and improvements plus the value of the

land, any improvements other than those made under the provisions of

this section and the proportion of increased assessed valuation that is

not exempt from taxation under this section, which proportion shall

remain constant during the term of the exemption. Where the alteration

or improvement qualifies under subparagraph two of paragraph (a) of

subdivision two of this section or under clause (A) or (B) of

subparagraph one of paragraph (a) of subdivision eleven of this section,

the exemption shall also include an exemption from taxation for local

purposes for twelve years upon that portion of the assessment, if any,

which exceeds the transition assessment, as defined in subdivision two

of section eighteen hundred five of this chapter, in effect at the time

of the commencement of the exemption hereunder.

(b) Notwithstanding the provisions of paragraph (a) of this

subdivision, except as provided in subparagraph three of this paragraph,

for buildings in which alterations, improvements or conversions

qualifying for an exemption under this section are commenced on or after

the date on which this paragraph becomes a law:

(1) The assessed value of the building during the period of the

exemption shall be pro-rated between the exempt and taxable portions of

the building assessment so that throughout the exemption period the

exempt portion of the building assessment shall bear the same

relationship to the non-exempt portion of the building assessment as it

did on the final tax roll on which an exemption was first available to

such building for alterations or improvements made pursuant to this

section or on the last tax roll on which such ratio was changed by

reason of additional improvements, whichever results in the greatest

percentage of exempt assessed valuation; provided, however, that

increases in building value due to (i) additional improvements that do

not qualify for an exemption under this section, (ii) increases in the

value of non-residential portions of the building, or (iii) non-exempt

additions to cubic content shall not be pro-rated, but shall be fully

taxable.

(2) Reductions in the assessed value of the building during the period

of the exemption shall be pro-rated between the taxable and exempt

portions of the building assessment in the proportion which was

established pursuant to subparagraph one of this paragraph on the final

tax roll for the first fiscal year for which an exemption was granted

pursuant to this section, or on the last tax roll on which such ratio

was changed by reason of additional improvements, whether exempt or

non-exempt, or due to changes in the assessed value of fully taxable

space. In no case, however, shall the value of an exemption granted

pursuant to this section be reduced during the period for which such

exemption was granted, by reason of a reduction in the assessed value of

the building, to an amount less than the amount of exemption appearing

on the first tax roll following the grant of this exemption.

(3) During the first three years of such exemptions, the assessment on

any such land and dwelling shall be determined in accordance with

paragraph (a) of this subdivision.

10. In cities with a population of one million or more, any such local

law or ordinance may require that, prior to application for any tax

exemption or abatement pursuant to this section, relocation awards be

paid to certain displaced manufacturing and other tenants under the

terms and conditions set forth below:

(a) Relocation awards for certain tenants of non-residential

buildings. Such local law or ordinance shall limit eligibility for such

a relocation award to former tenants and former subtenants of premises

in a non-residential building which is the subject of an application for

an alteration permit for conversion to a class A multiple dwelling, who:

(1) leased and used the vacated premises to conduct a manufacturing,

warehousing, or wholesaling business for not less than two consecutive

years immediately prior to vacating;

(2) vacated such premises on or after April first, nineteen hundred

eighty-one for any reason other than eviction for non-payment of rent;

(3) vacated such premises (i) no earlier than twenty-four months prior

to the filing date of an application for such alteration permit and (ii)

no later than the completion of the conversion as evidenced by the

issuance of a permanent certificate of occupancy for a class A multiple

dwelling;

(4) either purchased or leased for a term of not less than eighteen

months other premises within such city with a floor area not less than

one-third of the floor area of the vacated premises;

(5) relocated their business to such other premises within one year of

vacating the vacated premises; and

(6) paid all commercial rent or occupancy tax for the vacated

premises. A subtenant shall be eligible to receive a relocation award

notwithstanding any lack of eligibility of its prime tenant.

(b) Amount of relocation award. The relocation award shall not exceed

the greater of (1) all the base rent that accrued and was paid by the

eligible tenant during the final twenty-four months of its occupancy of

the vacated premises or (2) four dollars for each square foot that the

eligible tenant occupied in the vacated premises during the final

twenty-four months of its occupancy of the vacated premises. As used in

this subdivision, base rent shall be calculated in the same manner as

base rent is calculated for purposes of commercial rent or occupancy tax

in the city of New York, or in any such city. However, the aggregate

award payable to a prime tenant and any subtenants of such prime tenant

shall not exceed the amount which would have been payable to the prime

tenant had the prime tenant been eligible for an award based on the

entire floor area it leased from the owner; and if such limitation

applies, the awards shall be prorated based upon the total floor area

used and occupied by each eligible tenant.

(c) Payment of award. The relocation award shall become due and

payable to an eligible tenant at the time the eligible tenant either

purchases or leases other premises in accordance with paragraph (a)

above within such city and certifies eligibility to and demands payment

of the award from the owner of the vacated building. If the relocation

award is not paid within thirty days of such certification and demand,

interest shall accrue on the relocation award from the date of

certification and demand at the rate of twenty-four percent per annum.

(d) Notice of claim. At any time after such certification and demand

and prior to the date of the filing of an application for tax exemption

or abatement for the vacated building pursuant to this section, an

eligible tenant who has not received a relocation award shall have a

right to file a notice of claim. Such notice of claim shall be filed

with the county clerk of the county in which the vacated building is

located and shall verify the claimant's name, its compliance with

eligibility requirements, the address of the vacated premises, the floor

area it occupied, the name of the prime tenant if the claimant is a

subtenant, and all the base rent that accrued and was paid by the

claimant during the final twenty-four months of its occupancy.

(e) Discharge of notice of claim. A notice of claim may be discharged

by filing an undertaking with the clerk of the county in which the

premises are located in an amount equal to the amount claimed in

accordance with the procedures set forth in subdivision four of section

nineteen of the lien law, or by payment into court of such amount in

accordance with the procedures set forth in section fifty-five of the

lien law.

(f) Affidavit and notice as a condition to tax benefits. No tax

exemption or abatement shall be granted pursuant to this section unless

the local municipal agency responsible for administering this section

receives an affidavit from the applicant which verifies that:

(1) the applicant has caused to be published a notice in a newspaper

of general circulation within the city, no later than sixty days prior

to filing of an application for tax exemption or abatement pursuant to

this section, which advises former tenants and subtenants of their

rights pursuant to any local law or ordinance enacted pursuant to this

subdivision; and

(2) no notice of claim has been filed or all claims have been released

by the claimant, secured in accordance with the provisions of paragraph

(e) of this subdivision, or discharged as an improper claim by a court

order.

(g) Action on claim. If an eligible tenant or subtenant has duly filed

a notice of claim pursuant to this subdivision and does not receive a

relocation award as provided herein, it may commence an action against

any applicant who filed a false affidavit pursuant to paragraph (f) of

this subdivision within three years of such filing or any security

posted by such applicant pursuant to paragraph (e) of this subdivision.

In any action to enforce a claim pursuant to this subdivision, if the

court finds that the claimant has wilfully exaggerated the amount of the

claim, the claimant may be held liable in damages for an amount not to

exceed the proper relocation award. An eligible tenant in whose favor a

judgment is entered shall be entitled to costs and reasonable legal fees

and disbursements provided that such judgment is in excess of the amount

which the applicant or owner offered to pay the eligible tenant.

(h) Waiver. Any lease provision exempting, releasing or discharging

the obligation to pay a relocation award pursuant to this subdivision

shall be deemed to be void as against public policy and wholly

unenforceable.

(i) Local zoning resolution. The provisions of this subdivision ten

shall not apply if the local zoning resolution expressly provides for

relocation loans and/or grants in lieu of the benefits of this

subdivision.

11. Limitations of benefits. (a) Applicability. The provisions of this

subdivision apply to all conversions, alterations and improvements under

this section. However, they shall not apply to:

(1) alterations or improvements under subparagraph two, three or four

of paragraph (a) of subdivision one of this section, where carried out:

(A) with the substantial assistance of grants, loans or subsidies from

any federal, state or local agency or instrumentality, or any

not-for-profit philanthropic organization one of whose primary purposes

is providing low or moderate income housing; or

(B) with mortgage insurance by the New York city residential mortgage

insurance corporation or the state of New York mortgage agency; or

(C) in a neighborhood preservation area, as such areas were designated

by the New York city planning commission as of June first, nineteen

hundred eighty-three, provided that such area or part of such area

wherein the property is located has been approved as provided herein by

the city council of the city of New York. No such area or part thereof

shall be approved by the city council until notice of the area or part

thereof proposed to be approved is submitted to every community board

with jurisdiction over the area or part thereof, and (i) every such

community board has made and submitted to the city council comments as

to the proposed approval, or (ii) forty-five days have elapsed since

such notice was submitted to such community boards, whichever is

earlier; and

(D) pursuant to a program established by the federal housing

administration, federal national mortgage association, federal home loan

mortgage corporation or government national mortgage association for the

rehabilitation of existing multiple dwellings for persons of low or

moderate income, or a program of mortgage insurance for the

rehabilitation of existing multiple dwellings pursuant to section two

hundred twenty-three-f of the national housing act as amended, or a

program of mortgage insurance established by the federal housing

administration for the rehabilitation of existing multiple dwellings for

persons of low or moderate income; provided that properties receiving

benefits under such programs are located in a neighborhood strategy

area, as defined, by the United States department of housing and urban

development, or a neighborhood preservation area, as such areas were

designated by the New York city planning commission, as of June first,

nineteen hundred eighty-three.

(2) alterations or improvements under subparagraphs five and six of

paragraph (a) of subdivision one of this section; or

(2-a) Conversion of buildings or structures to class A multiple

dwellings pursuant to subparagraph one of paragraph (a) of subdivision

one of this section, where such conversions are undertaken by a

not-for-profit philanthropic organization or undertaken on properties

which receive mortgage insurance from the New York city residential

mortgage insurance corporation, or state of New York mortgage agency,

provided that such property is (i) located in a neighborhood

preservation area as such areas were designated by the city planning

commission on June first, nineteen hundred eighty-three, and (ii) such

property has been vacant since January first, nineteen hundred

eighty-two, and (iii) prior to becoming vacant such property was last

utilized for governmental, educational, hospital or nursing home

purposes.

(3) conversions of residential units qualified for the protection of

article seven-C of the multiple dwelling law under subparagraph one of

paragraph (a) of subdivision one of this section.

(b) Abatement limitations. The amount of abatement under subdivision

two of this section shall not exceed the certified reasonable cost of

the conversion, alteration or improvement, as determined under

regulations of the local housing agency administering the local law,

provided that the amount of certified reasonable cost eligible for

abatement under this section shall not exceed fifteen thousand dollars

for a dwelling unit of three and one-half rooms and a comparable amount

for dwelling units of other sizes, under regulations of the local

housing agency, and further provided that the amount of certified

reasonable cost eligible for abatement under this section may exceed

fifteen thousand dollars or such comparable amount per dwelling unit,

but not more than twenty-five percent above such amount, upon

application of the property owner and a determination by the housing

agency that:

(1) in the case of a conversion under subparagraph one of paragraph

(a) of subdivision one of this section, the increased cost is necessary

to comply with applicable law; or

(2) in the case of an alteration or improvement under subparagraph two

of paragraph (a) of subdivision one of this section, the increased cost

is necessary to eliminate the unhealthy or dangerous conditions or

replace the inadequate and obsolete facilities in a satisfactory manner;

or

(3) in the case of an alteration or improvement under subparagraph

three of paragraph (a) of subdivision one of this section, the increased

cost is necessary to conserve energy in a satisfactory manner; or

(4) in the case of an alteration or improvement under subparagraph

four of paragraph (a) of subdivision one of this section, the increased

cost, to the extent such cost is not offset by any and all tax credits

received as a result of the alteration or improvement, is necessary to

comply with any provision of law regulating historic or landmark

buildings or structures.

(b-1) For the purpose of the abatement limitations contained in the

opening paragraph of paragraph (b) of this subdivision, the number of

rooms in a dwelling unit shall be calculated in the following manner:

Each dwelling unit with at least one room which either (1) contains no

cooking facilities and measures at least one hundred fifty square feet,

or (2) contains cooking facilities and measures at least two hundred

thirty square feet, shall count as two and one-half rooms. Every other

room in the dwelling unit separated by either walls or doors, including

bedrooms, shall count as an additional room, provided, however, that

kitchens, cooking facilities, bathrooms, corridors or balconies shall

not count as an additional room. To be included, a room must meet the

requirements of habitability as provided in the relevant housing

maintenance code.

(c) Exemption limitations. (1) The increase in assessed valuation of

the real property located in the borough of Manhattan south of or

adjacent to the south side of one hundred tenth street resulting from

the conversion, alteration or improvement under paragraph (a) of

subdivision one of this section, shall be exempt from taxation as

provided in this section, only to the extent provided in this

subparagraph. The amount of the increased assessed valuation that is

exempt from taxation shall depend on the amount of the total assessed

valuation per dwelling unit calculated by dividing the amount of the

total assessed valuation of the property, as determined under this

chapter, by the number of dwelling units in the building after

completion of the conversion, alteration or improvement. The amount of

increased assessed valuation that will be exempt from taxation for

buildings with total assessed valuation per dwelling unit of less than

thirty-eight thousand dollars shall be calculated pursuant to the

following formula: (A) any portion of total assessed valuation of the

property attributable to the first eighteen thousand dollars of total

assessed valuation per dwelling unit, to the extent it represents

increased assessed valuation, shall be one hundred percent exempt; (B)

any portion of total assessed valuation attributable to the next four

thousand dollars of total assessed valuation per dwelling unit, to the

extent it represents increased assessed valuation, shall be seventy-five

percent exempt; (C) any portion of total assessed valuation attributable

to the next four thousand dollars of total assessed valuation per

dwelling unit, to the extent it represents increased assessed valuation,

shall be fifty percent exempt; (D) any portion of total assessed

valuation attributable to the next four thousand dollars of total

assessed valuation per dwelling unit, to the extent it represents

increased assessed valuation, shall be twenty-five percent exempt; (E)

any portion of total assessed valuation attributable to the next eight

thousand dollars of total assessed valuation per dwelling unit, to the

extent it represents increased assessed valuation per dwelling unit,

shall be fully taxable. Property with a total assessed valuation per

dwelling unit of thirty-eight thousand dollars or more shall not be

eligible for a tax exemption under this section.

(2) In calculating the amount of increased assessed valuation that

will be exempt from taxation pursuant to the formula in subparagraph one

of this paragraph, the full amount of total assessed valuation that does

not represent increased assessed valuation shall be applied in such

formula prior to the inclusion of any amount of increased assessed

valuation.

(3) Where the real property is occupied in part for residential

purposes and in part for non-residential purposes, the assessed

valuation of the property shall be appropriately allocated between the

residential and non-residential portions. In computing the total

assessed valuation per dwelling unit under this paragraph, only the

amount of valuation so allocated to the residential portion shall be

considered.

(4) Commencing with the assessment roll for the year nineteen hundred

eighty-four, where there has been a change in the level of assessment

from the assessment roll of the prior year of properties receiving

exemptions under this section, the local agency responsible for

assessment of real property may petition the commissioner to certify the

percentage of such change for the purposes of this section. In such

petition, the local agency shall submit such information as the

commissioner shall require in order to certify the percentage of such

change. The commissioner may also make such a certification on its own

motion. Upon receipt of such certification from the commissioner, the

local housing agency may modify the dollar values of total assessed

valuation per dwelling unit in subparagraph one of this paragraph to

reflect the percentage change in the level of assessment as shown in

such certification. As used in this subparagraph, the term "change in

the level of assessment" means the net increase or decrease in the

assessed valuation of properties in the assessing unit that received

exemptions under this section in the current year as compared to those

that received exemptions under this section in the prior year as a

result of assessing such properties at a higher or lower ratio of full

value.

(5) (A) Notwithstanding the provisions of subparagraph one of this

paragraph, the local housing agency may reduce or remove the limitations

on the exemption from taxation provided in such subparagraph with

respect to a particular property undergoing alteration or improvement,

upon application of the property owner and a determination by the agency

that:

(i) The increased benefit will increase the number of dwelling units

or improve the quality of dwelling units that will be affordable to

persons of low or moderate income; and

(ii) The increased benefit is necessary to make economically viable

the increase in the number of dwelling units or improvement in the

quality of dwelling units that will be affordable to persons of low or

moderate income.

(B) As used in this subparagraph, the term persons of low or moderate

income shall be persons who would qualify for housing subsidies pursuant

to section two hundred thirty-five of the national housing act, as

amended, at one hundred thirty-five percent of the income limitations

provided herein.

(C) Upon receiving an application under this subparagraph in proper

form, the local housing agency shall immediately submit it to the

community board for the area in which the project is located, which may,

within forty-five days of receiving it and after a public hearing, make

recommendations to the agency as to the application. The agency shall

act on the application within sixty days of receiving it from the

property owner in proper form, but not before expiration of the time for

the community board to make its recommendations, unless the board has

acted sooner.

(d) The local housing agency may set forth preliminarily the terms of

a determination under paragraph (b) or (c) of this subdivision prior to

the commencement of the conversion, alteration or improvement. Any such

determination shall take effect after completion of the work.

(e) Publication of local housing agency determinations. Any

determination of the local housing agency to increase an abatement under

paragraph (b) of this subdivision or to reduce or remove the exemption

limitations under paragraph (c) of this subdivision shall state the

basis for the determination and the data on which the determination was

based. Such determination shall be published in the official publication

of the city, or if no such publication exists in a newspaper with

general circulation in the city, for five consecutive days after the

determination is rendered.

(f) Proration of assessed valuation. Notwithstanding the provisions of

paragraph (b) of subdivision nine of this section, the provisions of

this paragraph shall apply to changes in assessments resulting from

conversion, alterations or improvements which are not subject to the

abatement or exemption limitations of paragraphs (b) and (c) of this

subdivision. During the period of such exemptions the assessment on any

such land and dwelling after such alterations and improvements,

exclusive of the increase in valuation which is subject to exemption in

full or proportionally under subdivision one of this section, shall not

exceed the valuation of the previously existing dwelling appearing on

the assessment rolls after the taxable status date immediately preceding

the commencement of such alterations and improvements plus the value of

the land, any improvements other than those made under the provisions of

this section and the proportion of increased assessed valuation that is

not exempt from taxation under this section, which proportion shall

remain constant during the term of the exemption. Where the alteration

or improvement qualified under subparagraph two of paragraph (a) of

subdivision two of this section or under clause (A) or (B) of

subparagraph one of paragraph (a) of this subdivision, the exemption

shall also include an exemption from taxation for local purposes for

twelve years upon that portion of the assessment, if any, which exceeds

the transition assessment, as defined in subdivision two of section

eighteen hundred five of this chapter, in effect at the time of

commencement of the exemption hereunder.

12. Harassment. (a) The provisions of this subdivision apply to and

are additional requirements for claiming or receiving:

(1) any tax exemption under this section; or

(2) any tax abatement under this section where the certified

reasonable cost per dwelling unit of the conversion, alteration or

improvement (including the cost of any conversion, alteration or

improvement for which an abatement was approved within four years prior

to commencement of the conversion, alteration or improvement) exceeds

seven thousand five hundred dollars.

(b) The owner of the property shall, not less than thirty days before

the commencement of the conversion, alteration or improvement

(hereinafter referred to as the "cut-off date"), file with the local

housing agency administering the local law, an affidavit or, where any

information referred to in subparagraph one of this paragraph changes

prior to applying for or claiming any benefit under this section, an

amending affidavit, setting forth the following information:

(1) every owner of record and owner of a substantial interest in the

property or entity owning the property or sponsoring the conversion,

alteration or improvement;

(2) a statement that none of such persons had, within the five years

prior to the cut-off date, been found to have harassed or unlawfully

evicted tenants by judgment or determination of a court or agency

(including a non-governmental agency having appropriate legal

jurisdiction) under the penal law, any state or local law regulating

rents or any state or local law relating to harassment of tenants or

unlawful eviction; and

(3) any change in the information required to be set forth.

(c) No conversion, alteration or improvement subject to this

subdivision shall be eligible for tax exemption or tax abatement under

this section where:

(1) any affidavit required under this subdivision has not been filed;

or

(2) any such affidavit contains a willful misrepresentation or

omission of any material fact; or

(3) any person referred to in subparagraph one of paragraph (b) of

this subdivision has been found to have harassed or unlawfully evicted

tenants as described in that paragraph, until and unless the finding is

reversed on appeal, provided that any such finding after the cut-off

date shall not apply to or affect any tax abatement or exemption for the

conversion, alteration or improvement covered by the affidavit.

(d) The local housing agency administering this law and the local

government agency responsible for real property tax assessment shall

maintain a list of affidavits as described in paragraph (b) of this

subdivision. Each agency shall review that list with respect to each

application or claim for benefits subject to this subdivision.

(e) "Substantial interest" as used in subparagraph one of paragraph

(b) of this subdivision shall mean ownership of an interest of ten per

centum or more in the property or entity owning the property or

sponsoring the conversion, alteration or improvement.

(f) Where the conversion, alteration or improvement is commenced

before August first, nineteen hundred eighty-three, the cut-off date

shall be as set forth in this subdivision, but no affidavit shall be

required to be filed until thirty days after the effective date of this

subdivision.

13. Additional limitation. The benefits of this section shall not

apply to any conversion of or alteration or improvement to any class B

multiple dwelling or class A multiple dwelling used in whole or in part

for single room occupancy, regardless of the status or use of the

building after the conversion, alteration or improvement unless such

conversion, alteration or improvement is carried out with the

substantial assistance of grants, loans or subsidies from any federal,

state or local agency or instrumentality.

14. Conversion of properties to residential use. The benefits of this

section shall not apply to any conversion of property to residential use

where the conversion was contrary to the applicable zoning resolution

and was permitted only by virtue of a variance as to use, unless the

local law is amended to explicitly provide that benefits shall be

available in such cases. The provisions of this subdivision do not apply

to conversions of residential units qualified for the protection of

article seven-C of the multiple dwelling law under subparagraph one of

paragraph (a) of subdivision one of this section.

15. Authority of city to limit local law. Where a city enacts or

amends a local law under this section, the local law may restrict, limit

or condition the eligibility, scope or amount of the benefits under the

local law in any manner, provided that the local law may not grant

benefits beyond those provided in this section.

16. Institutional lenders; cost certification. The rules of the local

housing agency administering such local law or ordinance shall make

provision for circumstances in which an institutional mortgage lender

(as defined in such rules) which has provided financing for alterations

or improvements to a building or structure and has become a successor in

interest (as defined in such rules) to the original owner of such

building or structure, after diligent efforts to obtain original

contracts, checks and other records normally reviewed by such agency to

verify claimed costs, is unable to obtain part or all of such records.

Under such circumstances the rules shall permit substitution in whole or

in part, as the case may be, of documentation certified by the lender

showing the amounts advanced by the lender pursuant to the mortgage loan

to finance such alterations or improvements, along with such other

documentation as the agency may require.

17. (a) For purposes of this subdivision, "substantial governmental

assistance" shall mean:

(i) grants, loans or subsidies from any federal, state or local agency

or instrumentality in furtherance of a program for the development of

affordable housing approved by the local housing agency, including,

without limitation, financing or insurance provided by the state of New

York mortgage agency of the New York city residential mortgage insurance

corporation; or

(ii) a written agreement between a housing development fund

corporation and the local housing agency limiting the incomes of persons

entitled to purchase shares or rent housing accommodations therein.

(b) Any local law or ordinance providing for benefits pursuant to this

section must also provide the following with respect to conversions,

alterations or improvements completed on or after December thirty-first,

two thousand eleven:

(i) except as otherwise provided in this section with respect to

multiple dwellings, buildings and structures owned and operated either

by limited-profit housing companies established pursuant to article two

of the private housing finance law or redevelopment companies

established pursuant to article five of the private housing finance law,

or with respect to a group of multiple dwellings that was developed as a

planned community and that is owned as two separate condominiums

containing a total of ten thousand or more dwelling units, any multiple

dwelling, building or structure that is owned as a cooperative or a

condominium that has an average assessed value per dwelling unit that

exceeds the assessed valuation limitation as provided in paragraph (c)

of this subdivision shall only be eligible for such benefits if the

alterations or improvements for which such multiple dwelling, building

or structure has applied for the benefits pursuant to this section were

carried out with substantial governmental assistance; and

(ii) no benefits pursuant to this section shall be granted for the

conversion of any non-residential building or structure into a class A

multiple dwelling unless such conversion was carried out with

substantial governmental assistance.

(c) Assessed value limitation. (i) For final assessment rolls to be

completed prior to two thousand seventeen, the assessed value limitation

shall be thirty thousand dollars.

(ii) For the final assessment roll to be completed in two thousand

seventeen the assessed value limitation shall be thirty-two thousand

dollars increased by the cost-of-living adjustment percentage of two

thousand seventeen. For the purposes of this computation, the

cost-of-living adjustment percentage of two thousand seventeen shall be

equal to the "applicable increase percentage" used by the United States

commissioner of social security to determine the monthly social security

benefits payable in two thousand seventeen to individuals, as provided

by subsection (i) of section four hundred fifteen of title forty-two of

the United States code.

(iii) For final assessment rolls to be completed in each ensuing year,

the applicable assessed value limitation, cost-of-living adjustment

percentage and applicable increase percentage shall all be advanced by

one year, and the assessed valuation limitation shall be the previously

applicable assessed value limitation increased by the new cost-of-living

adjustment percentage. If there should be a year for which there is no

applicable increase percentage due to a general benefit increase as

defined by subdivision three of subsection (i) of section four hundred

fifteen of title forty-two of the United States code, the applicable

increase percentage for purposes of this computation shall be deemed to

be the percentage which would have yielded that general benefit

increase.

(iv) Notwithstanding anything to the contrary contained herein, the

assessed value limitation shall not at any time exceed forty thousand

dollars.

18. Any local law or ordinance providing for benefits pursuant to this

section must also provide, with respect to conversions, alterations or

improvements for which application was made after the effective date of

this subdivision, that if such conversions, alterations or improvements

are not completed on the date upon which such local housing agency

inspects the items of work claimed in such application, the local

housing agency shall require the applicant to pay two times the actual

cost for any additional inspections needed to verify the completion of

such conversion, alteration or improvement.

19. The revocation of benefits granted to any multiple dwelling,

building or structure pursuant to this section shall not exempt any

dwelling unit therein from continued compliance with the requirements of

this section or of any local law or ordinance providing for benefits

pursuant to this section.

20. Notwithstanding the provisions of any general, special or local

law or any local ordinance providing for benefits pursuant to this

section the department may require that the applications for exemption

or abatement under this section that are filed on or after a date

specified in such local law or ordinance be filed electronically.

21. (a) Definitions. For the purposes of this subdivision:

(1) "Affordable rent" shall mean the maximum rent within the marketing

band that is allowed for an affordable rental unit as such rent is

established by the local housing agency.

(2) "Affordable rental unit" shall mean a dwelling unit in an eligible

rental building that, as of the filing of an application for a

certificate of eligibility and reasonable cost, has a rent at or below

the affordable rent.

(3) "Certificate of eligibility and reasonable cost" shall mean a

document issued by the local housing agency that establishes that a

property is eligible for rehabilitation program benefits and sets forth

the certified reasonable cost of the eligible construction for which

such benefits shall be received.

(4) "Certified reasonable cost schedule" shall mean a table providing

maximum dollar limits for specified alterations and improvements,

established, and updated as necessary, by the local housing agency.

(5) "Checklist" shall mean a document that the local housing agency

issues requesting additional information or documentation that is

necessary for further assessment of an application for a certificate of

eligibility and reasonable cost where such application contained all

information and documentation required at the initial filing.

(6) "Commencement date" shall mean, with respect to eligible

construction, the date on which any physical operation undertaken for

the purpose of performing such eligible construction lawfully begins.

(7) "Completion date" shall mean, with respect to eligible

construction, the date on which:

(A) every physical operation undertaken for the purpose of all

eligible construction has concluded; and

(B) all such eligible construction has been completed to a reasonable

and customary standard that renders such eligible construction capable

of use for the purpose for which such eligible construction was

intended.

(8) "Dwelling unit" shall mean any residential accommodation in a

class A multiple dwelling that:

(A) is arranged, designed, used or intended for use by one or more

persons living together and maintaining a common household;

(B) contains at least one room; and

(C) contains within such accommodation lawful sanitary and kitchen

facilities reserved for its occupants.

(9) "Eligible building" shall mean an eligible rental building, an

eligible homeownership building, or an eligible regulated homeownership

building, provided that such building contains three or more dwelling

units.

(10) "Eligible construction" shall mean alterations or improvements to

an eligible building that:

(A) are specifically identified on the certified reasonable cost

schedule;

(B) meet the minimum scope of work threshold;

(C) have a completion date that is after June twenty-ninth, two

thousand twenty-two and prior to June thirtieth, two thousand twenty-six

and that is not more than thirty months after their commencement date;

and

(D) are not attributable to any increased cubic content in such

eligible building.

(11) "Eligible homeownership building" shall mean an existing building

that:

(A) is a class A multiple dwelling operated as condominium or

cooperative housing;

(B) is not operating in whole or in part as a hotel; and

(C) has an average assessed valuation, including the valuation of the

land, that as of the commencement date does not exceed the homeownership

average assessed valuation limitation.

(12) "Eligible regulated homeownership building" shall mean an

existing building that is a class A multiple dwelling owned and operated

by either:

(A) a mutual company that continues to be organized and operated as a

mutual company and that has entered into and recorded a mutual company

regulatory agreement; or

(B) a mutual redevelopment company that continues to be organized and

operated as a mutual redevelopment company and that has entered into and

recorded a mutual redevelopment company regulatory agreement.

(13) "Eligible rental building" shall mean an existing building that:

(A) is a class A multiple dwelling in which all of the dwelling units

are operated as rental housing;

(B) is not operating in whole or in part as a hotel; and

(C) satisfies one of the following conditions:

(i) not less than fifty percent of the dwelling units in such building

are affordable rental units;

(ii) such building is owned and operated by a limited-profit housing

company; or

(iii) such building is the recipient of substantial governmental

assistance.

(14) "Existing building" shall mean an enclosed structure which:

(A) is permanently affixed to the land;

(B) has one or more floors and a roof;

(C) is bounded by walls;

(D) has at least one principal entrance utilized for day-to-day

pedestrian ingress and egress;

(E) has a certificate of occupancy or equivalent document that is in

effect prior to the commencement date; and

(F) exclusive of the land, has an assessed valuation of more than one

thousand dollars for the fiscal year immediately preceding the

commencement date.

(15) "Homeownership average assessed valuation limitation" shall mean

an average assessed valuation of forty-five thousand dollars per

dwelling unit.

(16) "Limited-profit housing company" shall have the same meaning as

"company" set forth in section twelve of the private housing finance

law.

(17) "Market rental unit" shall mean a dwelling unit in an eligible

rental building other than an affordable rental unit.

(18) "Marketing band" shall mean maximum rent amounts ranging from

twenty percent of eighty percent of the area median income, adjusted for

family size, to thirty percent of eighty percent of the area median

income, adjusted for family size.

(19) "Minimum scope of work threshold" shall mean a total amount of

certified reasonable cost established by rules and regulations of the

local housing agency, provided that such amount shall be no less than

one thousand five hundred dollars for each dwelling unit in existence on

the completion date.

(20) "Multiple dwelling" shall have the meaning set forth in section

four of the multiple dwelling law.

(21) "Mutual company" shall have the meaning set forth in section

twelve of the private housing finance law.

(22) "Mutual company regulatory agreement" shall mean a binding and

irrevocable agreement between a mutual company and the commissioner of

housing, the mutual company supervising agency, the New York city

housing development corporation, or the New York state housing finance

agency prohibiting the dissolution or reconstitution of such mutual

company pursuant to section thirty-five of the private housing finance

law for not less than fifteen years from the commencement of

rehabilitation program benefits for the existing building owned and

operated by such mutual company.

(23) "Mutual company supervising agency" shall have the same meaning,

with respect to any mutual company, as "supervising agency" set forth in

section two of the private housing finance law.

(24) "Mutual redevelopment company" shall have the same meaning as

"mutual" when applied to a redevelopment company as set forth in section

one hundred two of the private housing finance law.

(25) "Mutual redevelopment company regulatory agreement" shall mean a

binding and irrevocable agreement between a mutual redevelopment company

and the commissioner of housing, the redevelopment company supervising

agency, the New York city housing development corporation, or the New

York state housing finance agency prohibiting the dissolution or

reconstitution of such mutual redevelopment company pursuant to section

one hundred twenty-three of the private housing finance law until the

earlier of: (A) fifteen years from the commencement of rehabilitation

program benefits for the existing building owned and operated by such

mutual redevelopment company; or (B) the expiration of any tax exemption

granted to such mutual redevelopment company pursuant to section one

hundred twenty-five of the private housing finance law.

(26) "Redevelopment company" shall have the meaning set forth in

section one hundred two of the private housing finance law.

(27) "Redevelopment company supervising agency" shall have the same

meaning, with respect to any redevelopment company, as "supervising

agency" set forth in section one hundred two of the private housing

finance law.

(28) "Rehabilitation program benefits" shall mean abatement of real

property taxes pursuant to this subdivision.

(29) "Rent regulation" shall mean, collectively, the emergency housing

rent control law, any local law enacted pursuant to the local emergency

housing rent control act, the rent stabilization law of nineteen hundred

sixty-nine, the rent stabilization code, and the emergency tenant

protection act of nineteen seventy-four, all as in effect as of the

effective date of this subdivision, or as any such statute is amended

thereafter, together with any successor statutes or regulations

addressing substantially the same subject matter.

(30) "Restriction period" shall mean, notwithstanding any termination

or revocation of rehabilitation program benefits prior to such period,

fifteen years from the initial receipt of rehabilitation benefits, or

such additional period of time as may be imposed pursuant to clause (A)

of subparagraph five of paragraph (e) of this subdivision.

(31) "Substantial governmental assistance" shall mean grants, loans,

or subsidies from any federal, state, or local government agency or

instrumentality in furtherance of a program for the development of

affordable housing approved by the local housing agency, provided that

such grants, loans, or subsidies are provided in accordance with a

regulatory agreement entered into with such agency or instrumentality

that is in effect as of the filing date of the application for a

certificate of eligibility and reasonable cost.

(32) "Substantial interest" shall mean an ownership interest of ten

percent or more.

(b) Abatement. Notwithstanding the provisions of any other subdivision

of this section or of any general, special or local law to the contrary,

any city to which the multiple dwelling law is applicable, acting

through its local legislative body or other governing agency, is hereby

authorized and empowered, until and including June thirtieth, two

thousand twenty-five, to adopt and amend local laws or ordinances

allowing for an abatement of real property taxes on an eligible building

in which eligible construction has been completed, provided that:

(1) Such abatement shall not exceed seventy percent of the certified

reasonable cost of the eligible construction, as determined under rules

and regulations of the local housing agency;

(2) Such abatement shall not be effective for more than twenty years;

(3) The annual abatement of real property taxes on such eligible

building shall not exceed eight and one-third percent of the total

certified reasonable cost of such eligible construction;

(4) The annual abatement of real property taxes on such eligible

building in any consecutive twelve-month period shall in no event exceed

the amount of real property taxes payable in such twelve-month period

for such building, provided, however, that such abatement shall not

exceed fifty percent of the amount of real property taxes payable in

such twelve-month period for any of the following:

(A) an eligible rental building owned by a limited-profit housing

company or a redevelopment company;

(B) an eligible homeownership building; and

(C) an eligible regulated homeownership building; and

(5) Such abatement shall become effective beginning with the first

quarterly tax bill immediately following the date of issuance of the

certificate of eligibility and reasonable cost.

(c) Authority of city to adopt rules and regulations. Any such local

law or ordinance shall authorize the adoption of rules and regulations,

not inconsistent with this subdivision, by the local housing agency and

any other local agency necessary for the implementation of this

subdivision.

(d) Application. (1) Any such local law or ordinance shall require

that an application for a certificate of eligibility and reasonable cost

pursuant to this subdivision be made after the completion date and on or

before the later of (A) four months from the effective date of such

local law or ordinance; or (B) four months from such completion date.

(2) Such application shall include evidence of eligibility for

rehabilitation program benefits and evidence of reasonable cost as shall

be satisfactory to the local housing agency including, but not limited

to, evidence showing the cost of eligible construction.

(3) The local housing agency shall require a non-refundable filing fee

that shall be paid by a certified check or cashier's check upon the

filing of an application for a certificate of eligibility and reasonable

cost. Such fee shall be (A) one thousand dollars, plus (B) seventy-five

dollars for each dwelling unit in excess of six dwelling units in the

eligible building that is the subject of such application.

(4) Any application that is filed pursuant to this paragraph that is

missing any of the information and documentation required at initial

filing by such local law or ordinance and any rules and regulations of

the local housing agency shall be denied, provided that a new

application for the same eligible construction, together with a new

non-refundable filing fee, may be filed within fifteen days of the date

of issuance of such denial. If such second application is also missing

any such required information and documentation, it shall be denied and

no further applications for the same eligible construction shall be

permitted.

(5) The failure of an applicant to respond to any checklist within

thirty days of the date of its issuance by the local housing agency

shall result in denial of such application, and no further applications

for the same eligible construction shall be permitted. The local housing

agency shall issue not more than three checklists per application. An

application for a certificate of eligibility and reasonable cost shall

be denied when the local housing agency does not have a sufficient basis

to issue a certificate of eligibility and reasonable cost after the

timely response of an applicant to the third checklist concerning such

application. After the local housing agency has denied an application

for the reason described in the preceding sentence, such agency shall

permit no further applications for the same eligible construction.

(6) An application for a certificate of eligibility and reasonable

cost shall also include an affidavit of no harassment.

(A) Such affidavit shall set forth the following information:

(i) the name of every owner of record and owner of a substantial

interest in the eligible building or entity owning the eligible building

or sponsoring the eligible construction; and

(ii) a statement that none of such persons had, within the five years

prior to the completion date, been found to have harassed or unlawfully

evicted tenants by judgment or determination of a court or agency,

including a non-governmental agency having appropriate legal

jurisdiction under the penal law, any state or local law regulating

rents or any state or local law relating to harassment of tenants or

unlawful eviction.

(B) No eligible building shall be eligible for an abatement pursuant

to paragraph (b) of this subdivision where:

(i) any affidavit required under this subparagraph has not been filed;

or

(ii) any such affidavit contains a willful misrepresentation or

omission of any material fact; or

(iii) any owner of record or owner of a substantial interest in the

eligible building or entity owning the eligible building or sponsoring

the eligible construction has been found, by judgment or determination

of a court or agency, including a non-governmental agency having

appropriate legal jurisdiction under the penal law, any state or local

law regulating rents or any state or local law relating to harassment of

tenants or unlawful eviction, to have, within the five years prior to

the completion date, harassed or unlawfully evicted tenants, until and

unless the finding is reversed on appeal.

(C) Notwithstanding the provisions of any general, special or local

law to the contrary, the corporation counsel or other legal

representative of a city having a population of one million or more or

the district attorney of any county, may institute an action or

proceeding in any court of competent jurisdiction that may be

appropriate or necessary to determine whether any owner of record or

owner of a substantial interest in the eligible building or entity

owning the eligible building or sponsoring the eligible construction has

harassed or unlawfully evicted tenants as described in this

subparagraph.

(7) Notwithstanding the provisions of any general, special or local

law to the contrary, the local housing agency may require by rules and

regulations that an application for a certificate of eligibility and

reasonable cost be filed electronically.

(e) Additional requirements for an eligible rental building other than

one owned and operated by a limited-profit housing company. Any such

local law or ordinance shall, in addition to all other conditions of

eligibility for rehabilitation program benefits set forth in this

subdivision, require that an eligible rental building, other than one

owned and operated by a limited-profit housing company, also comply with

all provisions of this paragraph. Notwithstanding the foregoing, an

eligible rental building that is the recipient of substantial

governmental assistance shall not be required to comply with the

provisions of subparagraph two of this paragraph.

(1) Notwithstanding any provision of rent regulation to the contrary,

any market rental unit within such eligible rental building subject to

rent regulation as of the filing date of the application for a

certificate of eligibility and reasonable cost and any affordable rental

unit within such eligible rental building shall be subject to rent

regulation until such unit first becomes vacant after the expiration of

the restriction period at which time such unit, unless it would be

subject to rent regulation for reasons other than the provisions of this

subdivision, shall be deregulated, provided, however, that during the

restriction period, no exemption or exclusion from any requirement of

rent regulation shall apply to such dwelling units.

(2) Additional requirements for an eligible rental building that is

not a recipient of substantial governmental assistance.

(A) Not less than fifty percent of the dwelling units in such eligible

rental building shall be designated as affordable rental units.

(B) The owner of such eligible rental building shall ensure that no

affordable rental unit is held off the market for a period that is

longer than reasonably necessary.

(C) The owner of such eligible rental building shall waive the

collection of any major capital improvement rent increase granted by the

New York state division of housing and community renewal pursuant to

rent regulation that is attributable to eligible construction for which

such eligible rental building receives rehabilitation program benefits,

and shall file a declaration with the New York state division of housing

and community renewal providing such waiver.

(D) An affordable rental unit shall not be rented on a temporary,

transient or short-term basis. Every lease and renewal thereof for an

affordable rental unit shall be for a term of one or two years, at the

option of the tenant, and shall include a notice in at least

twelve-point type informing such tenant of their rights pursuant to this

subdivision, including an explanation of the restrictions on rent

increases that may be imposed on such affordable rental unit.

(E) The local housing agency may establish by rules and regulations

such requirements as the local housing agency deems necessary or

appropriate for designating affordable rental units, including, but not

limited to, designating the unit mix and distribution requirements of

such affordable rental units in an eligible building.

(3) The owner of such eligible rental building shall not engage in or

cause any harassment of the tenants of such eligible rental building or

unlawfully evict any such tenants during the restriction period.

(4) No dwelling units within such eligible rental building shall be

converted to cooperative or condominium ownership during the restriction

period.

(5) Any non-compliance of an eligible rental building with the

provisions of this paragraph shall permit the local housing agency to

take the following action:

(A) extend the restriction period;

(B) increase the number of affordable rental units in such eligible

rental building;

(C) impose a penalty of not more than the product of one thousand

dollars per instance of non-compliance and the number of dwelling units

contained in such eligible rental building; and

(D) terminate or revoke any rehabilitation program benefits in

accordance with paragraph (m) of this subdivision.

(f) Compliance with applicable law. Any such local law or ordinance

may also provide that rehabilitation program benefits shall not be

allowed for any eligible building unless and until such eligible

building complies with all applicable provisions of law.

(g) Implementation of rehabilitation program benefits. Upon issuance

of a certificate of eligibility and reasonable cost and payment of

outstanding fees, the local housing agency shall be authorized to

transmit such certificate of eligibility and reasonable cost to the

local agency responsible for real property tax assessment. Upon receipt

of a certificate of eligibility and reasonable cost, the local agency

responsible for real property tax assessment shall certify the amount of

taxes to be abated pursuant to paragraph (b) of this subdivision and

pursuant to such certificate of eligibility and reasonable cost provided

by the local housing agency.

(h) Outstanding taxes and charges. Any such local law or ordinance

shall also provide that rehabilitation program benefits shall not be

allowed for an eligible building in either of the following cases:

(1) there are outstanding real estate taxes or water and sewer charges

or payments in lieu of taxes that are due and owing as of the last day

of the tax period preceding the date of the receipt of the certificate

of eligibility and reasonable cost by the local agency responsible for

real property tax assessment; or

(2) real estate taxes or water and sewer charges due at any time

during the authorized term of such benefits remain unpaid for one year

after the same are due and payable.

(i) Additional limitations on eligibility. Any such local law or

ordinance shall also provide that:

(1) rehabilitation program benefits shall not be allowed for any

eligible building receiving tax exemption or abatement concurrently for

rehabilitation or new construction under any other provision of state or

local law or ordinance with the exception of any eligible construction

to an eligible building receiving a tax exemption or abatement under the

provisions of the private housing finance law;

(2) rehabilitation program benefits shall not be allowed for any item

of eligible construction in an eligible building if such eligible

building is receiving tax exemption or abatement for the same or a

similar item of eligible construction as of the December thirty-first

preceding the date of application for a certificate of eligibility and

reasonable cost for such rehabilitation program benefits;

(3) where the eligible construction includes or benefits a portion of

an eligible building that is not occupied for dwelling purposes, the

assessed valuation of such eligible building and the cost of the

eligible construction shall be apportioned so that rehabilitation

program benefits shall not be provided for eligible construction made

for other than dwelling purposes; and

(4) rehabilitation program benefits shall not be applied to abate the

taxes upon the land portion of real property, which shall continue to be

taxed based upon the assessed valuation of the land and the applicable

tax rate at the time such taxes are levied.

(j) Re-inspection penalty. Any such local law or ordinance shall also

provide that if the local housing agency cannot verify the eligible

construction claimed by an applicant upon the first inspection by the

local housing agency of the eligible building, such applicant shall be

required to pay ten times the actual cost of any additional inspection

needed to verify such eligible construction.

(k) Strict liability for inaccurate applications. Any such local law

or ordinance shall also provide that if the local housing agency

determines that an application for a certificate of eligibility and

reasonable cost contains a material misstatement of fact, the local

housing agency may reject such application and bar the submission of any

other application pursuant to this subdivision with respect to such

eligible building for a period not to exceed three years. An applicant

shall not be relieved from liability under this paragraph because it

submitted its application under a mistaken belief of fact. Furthermore,

any person or entity that files more than six applications containing

such a material misstatement of fact within any twelve-month period

shall be barred from submitting any new application for rehabilitation

program benefits on behalf of any eligible building for a period not to

exceed five years.

(l) Investigatory authority. Any such local law or ordinance shall

also allow the local housing agency to require such certifications and

consents necessary to access records, including other tax records, as

may be deemed appropriate to enforce the eligibility requirements of

this subdivision. Any such local law or ordinance shall further provide

that, for purposes of determining and certifying eligibility for

rehabilitation program benefits and the reasonable cost of any eligible

construction, the local housing agency shall be authorized to:

(1) administer oaths to and take the testimony of any person,

including, but not limited to, the owner of such eligible building;

(2) issue subpoenas requiring the attendance of such persons and the

production of any bills, books, papers or other documents as it may deem

necessary;

(3) make preliminary estimates of the maximum reasonable cost of such

eligible construction;

(4) establish maximum allowable costs of specified units, fixtures or

work in such eligible construction;

(5) require the submission of plans and specifications of such

eligible construction before the commencement thereof;

(6) require physical access to inspect the eligible building; and

(7) on an annual basis, require the submission of leases for any

dwelling unit in a building granted a certificate of eligibility and

reasonable cost.

(m) Termination or revocation. Any such local law or ordinance shall

provide that failure to comply with the provisions of this subdivision,

any such local law or ordinance, any rules and regulations promulgated

thereunder, or any mutual company regulatory agreement or mutual

redevelopment company regulatory agreement entered into thereunder, may

result in termination or revocation of any rehabilitation program

benefits retroactive to the commencement thereof. Such termination or

revocation shall not exempt such eligible building from continued

compliance with the requirements of this subdivision, such local law or

ordinance, such rules and regulations, and such mutual company

regulatory agreement or mutual redevelopment company regulatory

agreement.

(n) Criminal liability for unauthorized uses. Any such local law or

ordinance shall also provide that in the event that any recipient of

rehabilitation program benefits uses any dwelling unit in such eligible

building in violation of the requirements of such local law or ordinance

as adopted pursuant to this subdivision and any rules and regulations

promulgated pursuant thereto, such recipient shall be guilty of an

unclassified misdemeanor punishable by a fine in an amount equivalent to

double the value of the gain of such recipient from such unlawful use or

imprisonment for not more than ninety days, or both.

(o) Private right of action. Any prospective, present, or former

tenant of an eligible rental building may sue to enforce the

requirements and prohibitions of this subdivision, any such local law or

ordinance, or any rules and regulations promulgated thereunder, in the

supreme court of New York. Any such individual harmed by reason of a

violation of such requirements and prohibitions may sue therefor in the

supreme court of New York on behalf of himself or herself, and shall

recover threefold the damages sustained and the cost of the suit,

including a reasonable attorney's fee. The local housing agency may use

any court decision under this paragraph that is adverse to the owner of

an eligible building as the basis for further enforcement action.

Notwithstanding any other provision of law, an action by a tenant of an

eligible rental building under this paragraph shall be commenced within

six years from the date of the latest violation.

(p) Appointment of receiver. In addition to the remedies for

non-compliance provided for in subparagraph five of paragraph (e) of

this subdivision, any such local law or ordinance may also provide that

the local housing agency may make application for the appointment of a

receiver in accordance with the procedures contained in such local law

or ordinance. Any receiver appointed pursuant to this paragraph shall be

authorized, in addition to any other powers conferred by law, to effect

compliance with the provisions of this subdivision, such local law or

ordinance, and rules and regulations of the local housing agency. Any

expenditures incurred by the receiver to effect such compliance shall

constitute a debt of the owner and a lien upon the property, and upon

the rents and income thereof, in accordance with the procedures

contained in such local law or ordinance. The local housing agency in

its discretion may provide funds to be expended by the receiver, and

such funds shall constitute a debt recoverable from the owner in

accordance with applicable local laws or ordinances.

(q) Authority of city to limit local law. Where a city enacts or

amends a local law or ordinance under this subdivision, such local law

or ordinance may restrict, limit or condition the eligibility, scope or

amount of rehabilitation program benefits under the local law or

ordinance in any manner, provided that the local law or ordinance may

not grant rehabilitation program benefits beyond those provided in this

subdivision.

22. (a) Definitions. For the purposes of this subdivision:

(1) "Area median income" shall mean the income limits as defined

annually by the United States department of housing and urban

development for the New York city area.

(2) "Certificate of eligibility and reasonable cost" shall mean a

document issued by the local housing agency that establishes that a

property is eligible for rehabilitation program benefits and sets forth

the certified reasonable cost of the eligible construction for which

such benefits shall be received.

(3) "Certified reasonable cost schedule" shall mean a table providing

maximum dollar limits for specified alterations and improvements,

established, and updated at least every two years, by the local housing

agency.

(4) "Checklist" shall mean a document that the local housing agency

issues requesting additional information or documentation that is

necessary for further assessment of an application for a certificate of

eligibility and reasonable cost where such application contained all

information and documentation required at the initial filing.

(5) "Commencement date" shall mean, with respect to eligible

construction, the date on which any physical operation undertaken for

the purpose of performing such eligible construction lawfully begins.

(6) "Completion date" shall mean, with respect to eligible

construction, the date on which:

(A) every physical operation undertaken for the purpose of all

eligible construction has concluded; and

(B) all such eligible construction has been completed to a reasonable

and customary standard that renders such eligible construction capable

of use for the purpose for which such eligible construction was

intended.

(7) "Dwelling unit" shall mean any residential accommodation in a

class A multiple dwelling that:

(A) is arranged, designed, used or intended for use by one or more

persons living together and maintaining a common household;

(B) contains at least one room; and

(C) contains within such accommodation lawful sanitary and kitchen

facilities reserved for its occupants.

(8) "Eligible building" shall mean an eligible rental building, an

eligible homeownership building, or an eligible regulated homeownership

building, provided that such building contains three or more dwelling

units.

(9) "Eligible construction" shall mean alterations or improvements to

an eligible building that:

(A) are specifically identified on the certified reasonable cost

schedule;

(B) meet the minimum scope of work threshold;

(C) have a completion date that is on or after June thirtieth, two

thousand twenty-six and prior to June thirtieth, two thousand thirty-six

that is not more than thirty months after their commencement date; and

(D) are not attributable to any increased cubic content in such

eligible building.

(10) "Eligible homeownership building" shall mean an existing building

that:

(A) is a class A multiple dwelling operated as condominium or

cooperative housing;

(B) is not operating in whole or in part as a hotel; and

(C) has an average assessed valuation, including the valuation of the

land, that as of the commencement date does not exceed the homeownership

average assessed valuation limitation.

(11) "Eligible regulated homeownership building" shall mean an

existing building that is a class A multiple dwelling owned and operated

by either:

(A) a mutual company that continues to be organized and operated as a

mutual company and that has entered into and recorded a mutual company

regulatory agreement; or

(B) a mutual redevelopment company that continues to be organized and

operated as a mutual redevelopment company and that has entered into and

recorded a mutual redevelopment company regulatory agreement.

(12) "Eligible rental building" shall mean an existing building that:

(A) is a class A multiple dwelling in which all of the dwelling units

are operated as rental housing;

(B) is not operating in whole or in part as a hotel; and

(C) satisfies one of the following conditions:

(i) not less than fifty percent of the dwelling units in such building

are qualifying rental units;

(ii) such building is owned and operated by a limited-profit housing

company; or

(iii) such building is the recipient of substantial governmental

assistance.

(13) "Existing building" shall mean an enclosed structure which:

(A) is permanently affixed to the land;

(B) has one or more floors and a roof;

(C) is bounded by walls;

(D) has at least one principal entrance utilized for day-to-day

pedestrian ingress and egress;

(E) has a certificate of occupancy or equivalent document that is in

effect prior to the commencement date; and

(F) exclusive of the land, has an assessed valuation of more than one

thousand dollars for the fiscal year immediately preceding the

commencement date.

(14) "Homeownership average assessed valuation limitation" shall mean

an average assessed valuation of sixty thousand dollars per dwelling

unit, adjusted annually to reflect any increase in the consumer price

index for all urban consumers for all items as published by the United

States bureau of labor statistics for the region in which the eligible

building is located, as established for the most recent preceding

calendar year. The local housing agency shall publish the average

assessed valuation limit, as adjusted pursuant to this subparagraph, on

its website one year after the effective date of such local law

authorizing an abatement pursuant to this subdivision, and annually

thereafter.

(15) "Limited-profit housing company" shall have the same meaning as

"company" as defined in section twelve of the private housing finance

law.

(16) "Market rental unit" shall mean a dwelling unit in an eligible

rental building other than a qualifying rental unit.

(17) "Marketing band" shall mean maximum rent amounts ranging from

twenty percent of eighty percent of the area median income, adjusted for

family size, to thirty percent of eighty percent of the area median

income, adjusted for family size.

(18) "Minimum scope of work threshold" shall mean a total amount of

certified reasonable cost established by rules and regulations of the

local housing agency, provided that such amount shall be no less than

one thousand five hundred dollars for each dwelling unit in existence on

the completion date.

(19) "Multiple dwelling" shall have the meaning as such term is

defined in section four of the multiple dwelling law.

(20) "Mutual company" shall have the meaning as such term is defined

in section twelve of the private housing finance law.

(21) "Mutual company regulatory agreement" shall mean a binding and

irrevocable agreement between a mutual company and the commissioner of

housing, the mutual company supervising agency, the New York city

housing development corporation, or the New York state housing finance

agency prohibiting the dissolution or reconstitution of such mutual

company pursuant to section thirty-five of the private housing finance

law for not less than fifteen years from the commencement of

rehabilitation program benefits for the existing building owned and

operated by such mutual company.

(22) "Mutual company supervising agency" shall have the same meaning,

with respect to any mutual company, as "supervising agency" as defined

in section two of the private housing finance law.

(23) "Mutual redevelopment company" shall have the same meaning as

"mutual company" when applied to a redevelopment company as defined in

section one hundred two of the private housing finance law.

(24) "Mutual redevelopment company regulatory agreement" shall mean a

binding and irrevocable agreement between a mutual redevelopment company

and the commissioner of housing, the redevelopment company supervising

agency, the New York city housing development corporation, or the New

York state housing finance agency prohibiting the dissolution or

reconstitution of such mutual redevelopment company pursuant to section

one hundred twenty-three of the private housing finance law until the

earlier of:

(A) fifteen years from the commencement of rehabilitation program

benefits for the existing building owned and operated by such mutual

redevelopment company; or

(B) the expiration of any tax exemption granted to such mutual

redevelopment company pursuant to section one hundred twenty-five of the

private housing finance law.

(25) "Qualifying rent" shall mean the maximum rent within the

marketing band that is allowed for a qualifying rental unit as such rent

is established by the local housing agency.

(26) "Qualifying rental unit" shall mean a dwelling unit in an

eligible rental building that, as of the filing of an application for a

certificate of eligibility and reasonable cost, has a rent at or below

the qualifying rent.

(27) "Redevelopment company" shall have the same meaning as such term

is defined in section one hundred two of the private housing finance

law.

(28) "Redevelopment company supervising agency" shall have the same

meaning, with respect to any redevelopment company, as "supervising

agency" as defined in section one hundred two of the private housing

finance law.

(29) "Rehabilitation program benefits" shall mean abatement of real

property taxes pursuant to this subdivision.

(30) "Rent regulation" shall mean, collectively, the emergency housing

rent control law, any local law enacted pursuant to the local emergency

housing rent control act, the rent stabilization law of nineteen hundred

sixty-nine, the rent stabilization code, and the emergency tenant

protection act of nineteen seventy-four, all as in effect as of the

effective date of this subdivision, or as any such statute is amended

thereafter, together with any successor statutes or regulations

addressing substantially the same subject matter.

(31) "Restriction period" shall mean, notwithstanding any termination

or revocation of rehabilitation program benefits prior to such period,

fifteen years from the initial receipt of rehabilitation program

benefits, or such additional period of time as may be imposed pursuant

to clause (A) of subparagraph five of paragraph (e) of this subdivision.

(32) "Substantial governmental assistance" shall mean grants, loans,

or subsidies from any federal, state, or local government agency or

instrumentality in furtherance of a program for the development of

affordable housing approved by the local housing agency, provided that

such grants, loans, or subsidies are provided in accordance with a

regulatory agreement entered into with such agency or instrumentality

that is in effect as of the filing date of the application for a

certificate of eligibility and reasonable cost.

(33) "Substantial interest" shall mean an ownership interest of ten

percent or more.

(b) Abatement. Notwithstanding the provisions of any other subdivision

of this section or of any general, special, or local law to the

contrary, a city with a population of one million persons or more,

acting through its local legislative body, is hereby authorized and

empowered to adopt a local law authorizing an abatement of real property

taxes pursuant to this subdivision on an eligible building in which

eligible construction has been completed by an aggregate amount that

shall not exceed one hundred percent of the total certified reasonable

cost of such construction, as determined under rules and regulations of

the local housing agency, provided that:

(1) Such abatement shall not be effective for more than twenty years;

(2) The annual abatement of real property taxes on such eligible

building shall not exceed eight and one-third percent of the total

certified reasonable cost of such eligible construction;

(3) The annual abatement of real property taxes on such eligible

building in any consecutive twelve-month period shall in no event exceed

the amount of real property taxes payable in such twelve-month period

for such building, provided, however, that such abatement shall not

exceed fifty percent of the amount of real property taxes payable in

such twelve-month period for any of the following:

(A) an eligible rental building owned by a limited-profit housing

company or a redevelopment company;

(B) an eligible homeownership building; and

(C) an eligible regulated homeownership building; and

(4) Notwithstanding subparagraphs two and three of this paragraph, for

an application for rehabilitation program benefits that has been

approved, an amount equivalent to and not exceeding the filing fee paid

pursuant to subparagraph three of paragraph (d) of this subdivision

shall be included in addition to the aggregate amount abated under this

paragraph.

(5) Such abatement shall become effective beginning with the first

quarterly tax bill immediately following the date of issuance of the

certificate of eligibility and reasonable cost.

(c) Rulemaking. Each agency or department to which functions are

assigned by this subdivision may adopt and promulgate rules and

regulations for the effectuation of the purpose of this subdivision.

(d) Application. (1) An application for a certificate of eligibility

and reasonable cost pursuant to this subdivision shall be made after the

completion date and on or before the later of (A) four months from the

effective date of such local law authorizing an abatement pursuant to

this subdivision; or (B) four months from such completion date.

(2) Such application shall include evidence of eligibility for

rehabilitation program benefits and evidence of reasonable cost as shall

be satisfactory to the local housing agency including, but not limited

to, evidence showing the cost of eligible construction.

(3) The local housing agency shall require a non-refundable filing fee

that shall be paid upon the filing of an application for a certificate

of eligibility and reasonable cost. Such fee shall be seventy-five

dollars for each dwelling unit in excess of six dwelling units in the

eligible building that is the subject of such application, but no more

than twenty thousand dollars for each application. The filing fee per

each dwelling unit and maximum collectible application fee shall be

adjusted annually to reflect any increase in the consumer price index

for all urban consumers for all items as published by the United States

bureau of labor statistics for the region in which the eligible building

is located, as established for the most recent preceding calendar year.

(4) Any application that is filed pursuant to this paragraph that is

missing any of the information and documentation required at initial

filing by any rules and regulations of the local housing agency shall be

denied, provided that a new application for the same eligible

construction, together with a new non-refundable filing fee, may be

filed within fifteen days of the date of issuance of such denial. If

such second application is also missing any such required information

and documentation, it shall be denied and no further applications for

the same eligible construction shall be permitted.

(5) The failure of an applicant to respond to any checklist within

thirty days of the date of its issuance by the local housing agency

shall result in denial of such application, and no further applications

for the same eligible construction shall be permitted. The local housing

agency shall issue not more than three checklists per application. An

application for a certificate of eligibility and reasonable cost shall

be denied when the local housing agency does not have a sufficient basis

to issue a certificate of eligibility and reasonable cost after the

timely response of an applicant to the third checklist concerning such

application. After the local housing agency has denied an application

for the reason described in the preceding sentence, such agency shall

permit no further applications for the same eligible construction.

(6) An application for a certificate of eligibility and reasonable

cost shall also include an affidavit of no harassment.

(A) Such affidavit shall set forth the following information:

(i) the name of every owner of record and owner of a substantial

interest in the eligible building or entity owning the eligible building

or sponsoring the eligible construction; and

(ii) a statement that none of such persons had, within the five years

prior to the completion date, been found to have harassed or unlawfully

evicted tenants by judgment or determination of a court or agency,

including a non-governmental agency having appropriate legal

jurisdiction under the penal law, any state or local law regulating

rents, or any state or local law relating to harassment of tenants or

unlawful eviction.

(B) No eligible building shall be eligible for an abatement pursuant

to paragraph (b) of this subdivision where:

(i) any affidavit required under this subparagraph has not been filed;

or

(ii) any such affidavit contains a willful misrepresentation or

omission of any material fact; or

(iii) any owner of record or owner of a substantial interest in the

eligible building or entity owning the eligible building or sponsoring

the eligible construction has been found, by judgment or determination

of a court or agency, including a non-governmental agency having

appropriate legal jurisdiction under the penal law, any state or local

law regulating rents, or any state or local law relating to harassment

of tenants or unlawful eviction, to have, within the five years prior to

the completion date, harassed or unlawfully evicted tenants, until and

unless the finding is reversed on appeal.

(C) Notwithstanding the provisions of any general, special, or local

law to the contrary, the corporation counsel or other legal

representative of a city having a population of one million or more or

the district attorney of any county located in a city with a population

of one million or more, may institute an action or proceeding in any

court of competent jurisdiction that may be appropriate or necessary to

determine whether any owner of record or owner of a substantial interest

in the eligible building or entity owning the eligible building or

sponsoring the eligible construction has harassed or unlawfully evicted

tenants as described in this subparagraph.

(7) Notwithstanding the provisions of any general, special, or local

law to the contrary, the local housing agency may require by rules and

regulations that an application for a certificate of eligibility and

reasonable cost be filed electronically.

(8) The local housing agency may require an applicant to demonstrate

compliance with the housing maintenance code. If hazardous or

immediately hazardous violations exist, the local housing agency may

require the applicant to remediate such violations and may impose a

penalty in an amount set forth in rules and regulations if the applicant

fails to clear the violation.

(e) Additional requirements for an eligible rental building other than

one owned and operated by a limited-profit housing company. In addition

to all other conditions of eligibility for rehabilitation program

benefits set forth in this subdivision, an eligible rental building,

other than one owned and operated by a limited-profit housing company,

shall also comply with all provisions of this paragraph. Notwithstanding

the foregoing, an eligible rental building that is the recipient of

substantial governmental assistance shall not be required to comply with

the provisions of subparagraph two of this paragraph.

(1) Notwithstanding any provision of rent regulation to the contrary,

any market rental unit within such eligible rental building subject to

rent regulation as of the filing date of the application for a

certificate of eligibility and reasonable cost and any qualifying rental

unit within such eligible rental building shall be subject to rent

regulation until such unit first becomes vacant after the expiration of

the restriction period at which time such unit, unless it would be

subject to rent regulation for reasons other than the provisions of this

subdivision, shall be deregulated, provided, however, that during the

restriction period, no exemption or exclusion from any requirement of

rent regulation shall apply to such dwelling units.

(2) Additional requirements for an eligible rental building that is

not a recipient of substantial governmental assistance.

(A) Not less than fifty percent of the dwelling units in such eligible

rental building shall be designated as qualifying rental units.

(B) The owner of such eligible rental building shall ensure that no

qualifying rental unit is held off the market for a period that is

longer than reasonably necessary.

(C) The owner of such eligible rental building shall waive the

collection of any major capital improvement rent increase granted by the

New York state division of housing and community renewal pursuant to

rent regulation that is attributable to eligible construction for which

such eligible rental building receives rehabilitation program benefits,

and shall file a declaration with the New York state division of housing

and community renewal providing such waiver. The local housing agency

shall not require an owner to file such waiver until the application for

rehabilitation program benefits has been approved.

(D) A qualifying rental unit shall not be rented on a temporary,

transient or short-term basis. Every lease and renewal thereof for a

qualifying rental unit shall be for a term of one or two years, at the

option of the tenant, and shall include a notice in at least

twelve-point type informing such tenant of their rights pursuant to this

subdivision, including an explanation of the restrictions on rent

increases that may be imposed on such qualifying rental unit.

(E) The local housing agency may establish by rules and regulations

such requirements as the local housing agency deems necessary or

appropriate for designating qualifying rental units, including, but not

limited to, designating the unit mix and distribution requirements of

such qualifying rental units in an eligible building.

(3) The owner of such eligible rental building shall not engage in or

cause any harassment of the tenants of such eligible rental building or

unlawfully evict any such tenants during the restriction period.

(4) No dwelling units within such eligible rental building shall be

converted to cooperative or condominium ownership during the restriction

period.

(5) Any non-compliance of an eligible rental building with the

provisions of this paragraph shall permit the local housing agency to

take the following action:

(A) extend the restriction period;

(B) increase the number of qualifying rental units in such eligible

rental building;

(C) impose a penalty of not more than the product of one thousand

dollars per instance of non-compliance and the number of dwelling units

contained in such eligible rental building; and

(D) terminate or revoke any rehabilitation program benefits in

accordance with paragraph (p) of this subdivision.

(f) Compliance with applicable law. Rehabilitation program benefits

shall not be allowed for any eligible building unless and until such

eligible building complies with all applicable provisions of law.

Rehabilitation program benefits shall not be allowed if the local

housing agency determines that eligible construction was not carried out

in conformity with all applicable provisions of law.

(g) Tenant notification. Notwithstanding any provision of this section

to the contrary, no rehabilitation program benefits shall be granted for

any eligible construction with a commencement date on or after the

effective date of such local law authorizing an abatement pursuant to

this subdivision unless the applicant provides to tenants, if any, of

such eligible building not more than one hundred eighty days nor less

than thirty days prior to the commencement date, notice of the following

information:

(1) The proposed work;

(2) The identity and contact information of the eligible building's

representative; and

(3) The tenants' rights under applicable law with respect to such

work; provided that, in the case of a loan program supervised by the

local housing agency, such agency may provide the required notice to the

tenants.

(h) Notice of intent. An applicant for rehabilitation program benefits

for any eligible construction with a commencement date on or after the

effective date of such local law authorizing an abatement pursuant to

this subdivision shall file with the local housing agency a form

supplied by such agency which:

(1) States an intention to file for rehabilitation program benefits;

(2) Describes the work for which rehabilitation program benefits will

be claimed;

(3) Estimates the cost of such work which will be eligible for

rehabilitation program benefits; and

(4) Provides proof of the notice required under paragraph (g) of this

subdivision. Such form shall be filed prior to the commencement date. If

the scope of such work or the estimated cost thereof changes materially,

such applicant shall file a revised notice of intent. An applicant who

fails to comply with the requirements of this paragraph shall be subject

to a penalty not to exceed one hundred percent of the filing fee

otherwise payable pursuant to subparagraph three of paragraph (d) of

this subdivision.

(i) Implementation of rehabilitation program benefits. Upon issuance

of a certificate of eligibility and reasonable cost and payment of

outstanding fees, the local housing agency shall be authorized to

transmit such certificate of eligibility and reasonable cost to the

local agency responsible for real property tax assessment. Upon receipt

of a certificate of eligibility and reasonable cost, the local agency

responsible for real property tax assessment shall certify the amount of

taxes to be abated pursuant to paragraph (b) of this subdivision and

pursuant to such certificate of eligibility and reasonable cost provided

by the local housing agency.

(j) Outstanding taxes and charges. Rehabilitation program benefits

shall not be allowed for an eligible building in either of the following

cases:

(1) there are outstanding real estate taxes or water and sewer charges

or payments in lieu of taxes that are due and owing as of the last day

of the tax period preceding the date of the receipt of the certificate

of eligibility and reasonable cost by the local agency responsible for

real property tax assessment; or

(2) real estate taxes or water and sewer charges due at any time

during the authorized term of such benefits remain unpaid for one year

after the same are due and payable.

(k) Additional limitations on eligibility. (1) Rehabilitation program

benefits shall not be allowed for any eligible building receiving tax

exemption or abatement concurrently for rehabilitation or new

construction under any other provision of state or local law or

ordinance, with the exception of any eligible construction to an

eligible building receiving a tax exemption or abatement under the

provisions of the private housing finance law;

(2) Rehabilitation program benefits shall not be allowed for any item

of eligible construction in an eligible building if such eligible

building is receiving tax exemption or abatement for the same or a

similar item of eligible construction as of the December thirty-first

preceding the date of application for a certificate of eligibility and

reasonable cost for such rehabilitation program benefits;

(3) Where the eligible construction includes or benefits a portion of

an eligible building that is not occupied for dwelling purposes, the

assessed valuation of such eligible building and the cost of the

eligible construction shall be apportioned so that rehabilitation

program benefits shall not be provided for eligible construction made

for other than dwelling purposes; and

(4) Rehabilitation program benefits shall not be applied to abate the

taxes upon the land portion of real property, which shall continue to be

taxed based upon the assessed valuation of the land and the applicable

tax rate at the time such taxes are levied.

(l) Re-inspection penalty. If the local housing agency cannot verify

the eligible construction claimed by an applicant upon the first

inspection by the local housing agency of the eligible building, such

applicant shall be required to pay ten times the actual cost of any

additional inspection needed to verify such eligible construction.

(m) Strict liability for inaccurate applications. If the local housing

agency determines that an application for a certificate of eligibility

and reasonable cost contains a material misstatement of fact or omission

of fact, the local housing agency may reject such application and bar

the submission of any other application pursuant to this subdivision

with respect to such eligible building for a period not to exceed three

years. An applicant shall not be relieved from liability under this

paragraph because it submitted its application under a mistaken belief

of fact. Furthermore, any person or entity that files more than six

applications containing such a material misstatement of fact or omission

of fact within any twelve-month period shall be barred from submitting

any new application for rehabilitation program benefits on behalf of any

eligible building for a period not to exceed five years.

(n) False statements. Any person who shall knowingly and willfully

make any false statement or omission as to any material matter in any

application for a certificate of eligibility and reasonable cost shall

be guilty of an offense punishable by a fine of not more than five

hundred dollars, or imprisonment for not more than ninety days, or both.

(o) Investigatory authority. The local housing agency may require such

certifications and consents necessary to access records, including other

tax records, as may be deemed appropriate to enforce the eligibility

requirements of this subdivision. For purposes of determining and

certifying eligibility for rehabilitation program benefits and the

reasonable cost of any eligible construction, the local housing agency

shall be authorized to:

(1) administer oaths to and take the testimony of any person,

including, but not limited to, the owner of such eligible building;

(2) issue subpoenas requiring the attendance of such persons and the

production of any bills, books, papers or other documents as it may deem

necessary;

(3) make preliminary estimates of the maximum reasonable cost of such

eligible construction;

(4) establish maximum allowable costs of specified units, fixtures or

work in such eligible construction;

(5) require the submission of plans and specifications of such

eligible construction before the commencement thereof;

(6) require physical access to inspect the eligible building; and

(7) on an annual basis, require the submission of leases for any

dwelling unit in a building granted a certificate of eligibility and

reasonable cost.

(p) Termination or revocation. Failure to comply with the provisions

of this subdivision, any rules and regulations promulgated thereunder,

or any mutual company regulatory agreement or mutual redevelopment

company regulatory agreement entered into thereunder, may result in

termination or revocation of any rehabilitation program benefits

retroactive to the commencement thereof. Such termination or revocation

shall not exempt such eligible building from continued compliance with

the requirements of this subdivision, such rules and regulations, and

such mutual company regulatory agreement or mutual redevelopment company

regulatory agreement.

(q) Criminal liability for unauthorized uses. In the event that any

recipient of rehabilitation program benefits uses any dwelling unit in

such eligible building in violation of the requirements of any rules and

regulations promulgated pursuant to this subdivision, such recipient

shall be guilty of an unclassified misdemeanor punishable by a fine in

an amount equivalent to double the value of the gain of such recipient

from such unlawful use or imprisonment for not more than ninety days, or

both.

(r) Private right of action. Any prospective, present, or former

tenant of an eligible rental building may sue to enforce the

requirements and prohibitions of this subdivision, or any rules and

regulations promulgated thereunder, in the supreme court of New York.

Any such individual harmed by reason of a violation of such requirements

and prohibitions may sue therefor in the supreme court of New York on

behalf of themselves, and shall recover threefold the damages sustained

and the cost of the suit, including a reasonable attorney's fee. The

local housing agency may use any court decision under this paragraph

that is adverse to the owner of an eligible building as the basis for

further enforcement action. Notwithstanding any other provision of law,

an action by a tenant of an eligible rental building under this

paragraph shall be commenced within six years from the date of the

latest violation.

(s) Appointment of receiver. (1) Appointment. In addition to the

remedies for non-compliance provided for in subparagraph five of

paragraph (e) of this subdivision, the local housing agency may make

application for the appointment of a receiver in accordance with the

procedures contained in applicable rules and regulations of the local

housing agency; provided, however, that the local housing agency shall

not make such application with respect to any eligible homeownership

building or eligible regulated homeownership building. Any receiver

appointed pursuant to this paragraph shall be authorized, in addition to

any other powers conferred by law, to effect compliance with the

provisions of this subdivision and rules and regulations of the local

housing agency. Any expenditures incurred by the receiver to effect such

compliance shall constitute a debt of the owner and a lien upon the

property, and upon the rents and income thereof, in accordance with the

procedures contained in such rules and regulations. The local housing

agency in its discretion may provide funds to be expended by the

receiver, and such funds shall constitute a debt recoverable from the

owner in accordance with applicable local laws or ordinances.

(2) Power to order corrections of violations. Whenever the local

housing agency determines that any violation of the provisions of this

subdivision, any rules and regulations promulgated thereunder, or any

mutual company regulatory agreement or mutual redevelopment company

regulatory agreement entered into thereunder, has occurred, such agency

may order the owner of the eligible rental building or other responsible

party to correct such violation. An order issued pursuant to this

subparagraph shall state the violations involved and the corrective

action to be taken, and shall specify a time for compliance, which shall

be not less than twenty-one days from the date of service of the order,

except that where a condition dangerous to human life and safety or

detrimental to health exists or is threatened, a shorter period for

compliance may be specified.

(3) Grounds for appointment of receiver. Upon failure of an eligible

rental building to comply with an order to correct issued pursuant to

subparagraph two of this paragraph within the specified time therein,

the local housing agency may apply for the appointment of a receiver to

correct such violations.

(4) Notice to owner, mortgagees, and lienors. (A) If the local housing

agency intends to seek the appointment of a receiver pursuant to this

paragraph, it shall serve upon the owner, along with the order

authorized pursuant to subparagraph two of this paragraph, a notice

stating that in the event the violations covered by the order are not

corrected in the manner and within the time specified therein, such

agency may apply for the appointment of a receiver of the rents, issues,

and profits of the property with rights superior to those of the owner

and any mortgagee or lienor.

(B) Within five days after service of the order and notice upon the

owner, the local housing agency shall serve a copy of the order and

notice upon every mortgagee and lienor of record, personally or by

registered or certified mail, at the address set forth in the recorded

mortgage or lien. If no address appears therein, a copy shall be sent by

registered mail to the person at whose request the instrument was

recorded.

(C) The local housing agency shall file a copy of the notice and order

in the office of the county clerk in which mechanics liens affecting the

eligible rental building would be filed.

(5) Order to show cause. (A) The local housing agency, upon failure of

the owner to comply with an order issued pursuant to subparagraph two of

this paragraph within the time provided therein, may thereafter apply to

a court of competent jurisdiction in the county where the eligible

rental building is located for an order directing the owner and any

mortgagees or lienors of record to show cause why the commissioner of

the local housing agency should not be appointed receiver of the rents,

issues, and profits of the eligible rental building and why the receiver

should not correct such violation and obtain a lien in favor of the

local housing agency against the eligible rental building having the

priority provided in article eight of subchapter five of chapter two of

title twenty-seven of the administrative code of the city of New York to

secure repayment of the costs incurred by the receiver in removing such

conditions. Such application shall contain:

(i) Proof by affidavit that an order of the local housing agency has

been issued, served on the owner, mortgagees, and lienors, and filed, in

accordance with subparagraph four of this paragraph;

(ii) A statement that a violation continued to exist in such eligible

rental building after the time provided in the order for correction of

the condition, and a description of the eligible rental building and

violations involved; and

(iii) A brief description of the nature of the actions required to

correct the violations and an estimate as to the cost thereof.

(B) The order to show cause shall be returnable not less than five

days after service is completed.

(C) A copy of the order to show cause, and the papers on which it is

based, shall be served on the owner, mortgagees of record, and lienors.

If any such persons cannot with due diligence be served personally

within the city of New York within the time fixed in the order, then

service may be made by posting a copy of the order in a conspicuous

place on the eligible rental building, and by sending a copy thereof by

registered mail to the owner at the last address, if any, registered by

such owner with the local housing agency, or to such owner's last

address, if any, known to the local housing agency, or, in the case of a

mortgagee or lienor, to the address set forth in the recorded mortgage

or lien, and by publication in a newspaper of general circulation in the

county where such eligible rental building is located. Service shall be

deemed complete on filing proof thereof in the office of the clerk of

the court in which application for such order is made.

(6) Proceedings on return of order to show cause. (A) On the return of

the order to show cause, determination thereof shall have precedence

over every other business of the court unless the court shall find that

some other pending proceeding, having a similar statutory preference,

has priority.

(B) If the court finds that the facts stated in the application

warrant the granting thereof, then it shall appoint the commissioner of

the local housing agency receiver of the rents, issues, and profits of

the eligible rental building.

(C) Notwithstanding clause (B) of this subparagraph, if, after

determination of the issue, the owner, or any mortgagee or lienor or

other person having an interest in the eligible rental building, shall

apply to the court to be permitted to correct the violations set forth

in the local housing agency's application and shall (i) demonstrate the

ability to promptly undertake the actions required; and (ii) post

security for the performance thereof within the time, and in the amount

and manner, deemed necessary by the court, then the court may, in lieu

of appointing a receiver, issue an order permitting such person to

perform the actions within a time fixed by the court. If at the time

fixed in the order the actions have not been satisfactorily done, the

court shall appoint such receiver. If after the granting of an order

permitting a person to perform the actions but before the time fixed by

the court for the completion thereof it shall appear to the local

housing agency that the person permitted to do the same is not

proceeding with due diligence, then such agency may apply to the court,

on notice to those persons who have appeared in the proceeding, for a

hearing to determine whether a receiver shall be appointed immediately.

On the failure of any person to complete the corrective actions in

accordance with the provisions of an order under this clause, such

agency, or any receiver thereafter appointed, shall be reimbursed for

costs incurred by such agency or receiver in correcting the violation

and other charges pursuant to this clause out of the security posted by

such person.

(7) Powers and duties of receiver. (A) A receiver appointed pursuant

to this paragraph shall have all of the powers and duties of a receiver

appointed in an action to foreclose a mortgage on real property,

together with such additional powers and duties as granted and imposed

by this subparagraph. Such receiver shall not be required to file any

bond.

(B) The receiver shall with all reasonable speed remove violations in

the eligible rental building. Such receiver shall have the power to let

contracts or incur expenses therefor in accordance with the provisions

of law applicable to contracts for public works except that

advertisement shall not be required for each such contract.

Notwithstanding any provision of law, the receiver may let contracts or

incur expenses for individual items without the procurement of

competitive bids where the total amount of any such individual item does

not exceed two thousand five hundred dollars.

(C) The receiver shall collect the accrued and accruing rents, issues,

and profits of the eligible rental building and apply the same to the

cost of the corrective actions authorized in clause (B) of this

subparagraph, to the payment of expenses reasonably necessary to the

proper operation and management of the eligible rental building,

including insurance and the fees of the managing agent, and the

necessary expenses of their office as receiver, the repayment of all

moneys advanced to the receiver by the local housing agency to cover the

costs incurred by the receiver and interest thereon; and then, if there

be a surplus, to unpaid taxes, assessments, water rents, sewer rents,

and penalties and interest thereon, and then to sums due to mortgagees

or lienors. If the income of the eligible rental building shall be

insufficient to cover the cost of the repairs and improvements or the

expenses reasonably necessary to the proper operation and management of

such eligible rental building and other necessary expenses of the

receiver, the local housing agency shall advance to the receiver any

sums required to cover such cost and expense and thereupon shall have a

lien against such eligible rental building having the priority provided

in article eight of subchapter five of chapter two of title twenty-seven

of the administrative code of the city of New York for any such sums so

advanced with interest thereon.

(D) The receiver shall be entitled to the same fees, commissions, and

necessary expenses as receivers in actions to foreclose mortgages. Such

fees and commissions shall be paid into the fund created pursuant to

section 27-2111 of the administrative code of the city of New York. The

receiver shall be liable only in such receiver's official capacity for

injury to person and property by reason of conditions of the eligible

rental building in a case where an owner would have been liable; such

receiver shall not have any liability in such receiver's personal

capacity. The personnel and facilities of the local housing agency and

the corporation counsel or other legal representative of a city having a

population of one million or more shall be availed of by the receiver

for the purpose of carrying out such receiver's duties, and the costs of

such services shall be deemed a necessary expense of the receiver.

(8) Discharge of receiver. The receiver shall be discharged upon

rendering a full and complete accounting to the court when the actions

authorized by this paragraph are completed and the cost thereof and all

other costs authorized by this paragraph have been paid or reimbursed

from the rents and income of the eligible rental building and the

surplus money, if any, has been paid over to the owner or the mortgagee

or lienor as the court may direct. However, at any time, the receiver

may be discharged upon filing their account as receiver without

affecting the right of the local housing agency to its lien. Upon the

completion of the repairs and improvements, the owner, the mortgagee, or

any lienor may apply for the discharge of the receiver upon payment to

the receiver of all moneys expended by such receiver therefor and all

other costs authorized by subparagraph seven of this paragraph which

have not been paid or reimbursed from the rents and income of such

eligible rental building.

(9) Recovery of expenses of receivership; lien of receiver. (A) The

expenditures made by the receiver pursuant to subparagraph seven of this

paragraph shall, to the extent that they are not recovered from the

rents and income of the eligible rental building collected by the

receiver, constitute a debt of the owner and a lien upon such building

and lot, and upon the rents and income thereof. Except as otherwise

provided in this subparagraph, the provisions of article eight of

subchapter five of chapter two of title twenty-seven of the

administrative code of the city of New York shall govern the effect and

enforcement of such debt and lien; references therein to the department

of housing preservation and development shall, for purposes of this

article, be deemed to refer to the receiver and, after such receiver's

discharge, the department of housing preservation and development.

(B) Failure to serve a copy of the order and notice required in the

manner specified by subparagraph four of this paragraph, or failure to

serve any mortgagee or lienor with a copy of the order to show cause as

required by clause (C) of subparagraph five of this paragraph, shall not

affect the validity of the proceeding or the appointment of a receiver,

but the rights of the local housing agency or of the receiver shall not

in such event be superior to the rights of any mortgagee or lienor who

has not been served as provided therein.

(C) Any mortgagee or lienor who at such mortgagee or lienor's expense

corrects the violations to the satisfaction of the court pursuant to the

provisions of clause (C) of subparagraph six of this paragraph shall

have and be entitled to enforce a lien equivalent to the lien granted to

the receiver in favor of the local housing agency by this subparagraph.

Any mortgagee or lienor who, following the appointment of a receiver by

the court, shall reimburse the receiver and the local housing agency for

all costs and charges as provided by this paragraph shall be entitled to

an assignment of the lien granted to the receiver in favor of the local

housing agency.

(10) Obligations of owner not affected. Nothing contained in this

paragraph shall be deemed to relieve the owner of any civil or criminal

liability incurred or any duty imposed by law by reason of acts or

omissions of the owner prior to the appointment of a receiver; nor shall

anything contained in this paragraph be construed to suspend during the

receivership any obligation of the owner for the payment of taxes or

other operating and maintenance expenses of the eligible rental building

nor of the owner or any other person for the payment of mortgages or

liens.

(t) Reporting. No later than two years after the effective date of

such local law authorizing an abatement pursuant to this subdivision,

and annually thereafter, the local housing agency, in consultation with

the department of finance, shall submit to the mayor and the speaker of

the council and post on its website a report on the actions by the local

housing agency in the preceding fiscal year related to rehabilitation

program benefits. Such report shall include, but not be limited to:

(1) The total amount of the rehabilitation program benefits approved

for each eligible building, the number of eligible buildings in each

community district, neighborhood tabulation area, council district, New

York state assembly district, and New York state senate district, the

building classification, in accordance with section three hundred two of

the New York city building code, of each such eligible building, the

number of dwelling units in each such eligible building, and the number

of qualifying rental units in each such eligible building; and

(2) The number of eligible buildings whose rehabilitation program

benefits were terminated or revoked and the number of eligible buildings

against which actions were taken, pursuant to clauses (A), (B) and (C)

of subparagraph five of paragraph (e) of this subdivision, to address

noncompliance with the provisions of such subdivision, and the street

address of each such eligible building.

(u) Updates to the certified reasonable cost schedule. When updating

the certified reasonable cost schedule, the local housing agency shall

consider the factors such agency deems relevant, such as the

requirements imposed on eligible buildings by local law, including, but

not limited to, articles three hundred two, three hundred twenty and

three hundred twenty-one of chapter three of title twenty-eight of the

administrative code of the city of New York, and the effects of

inflation on such costs since the prior date the certified reasonable

cost schedule was updated. The local housing agency shall publish the

certified reasonable cost schedule on its website.