N.Y. Real Property Tax Law § 489-ccccc: Eligibility for benefits

§ 489-ccccc. Eligibility for benefits. 1. A recipient of a

certificate of eligibility with an effective date of July first,

nineteen hundred ninety-five or after must make one-half the minimum

required expenditure within eighteen months of the effective date of

such certificate, and make the minimum required expenditure within

thirty-six months of the effective date of such certificate to be

eligible to receive the benefits of this title. Any recipient who shall

fail to make such expenditures shall cease to be eligible for benefits

pursuant to this title and shall pay, with interest, any taxes for which

an exemption was claimed pursuant to this title.

2. No benefits pursuant to this title shall be granted for

construction work on any condominium unit unless such unit is in a

building or structure which, if viewed as a whole and as if it were

under single ownership, would qualify as mixed-use property. The

minimum required expenditure applicable to any recipient of a

certificate of eligibility for construction work on a condominium unit

shall be equal to the minimum required expenditure which would apply if

a certificate of eligibility were issued for construction work on the

entire property where such unit is located. Nothing in this subdivision

shall be construed to prevent owners of condominium units in the same

property from forming an association to be a recipient.

3. No benefits pursuant to this title shall be granted for any

construction work unless the applicant filed an application for such

benefits on or before the date of issuance of a building permit for such

work. The requirements of this subdivision may be satisfied where the

applicant's architect, contractor or other representative authorized to

file the application for such building permit files with the department

of finance on behalf of the applicant a preliminary application

containing such information as the department of finance shall prescribe

by rule.

4. No benefits pursuant to this title shall be granted for any

construction work on property any part of which is used or is to be used

for a restricted activity.

5. No benefits pursuant to this title shall be granted for

construction work which is the subject of a certificate of eligibility

issued pursuant to title two, title two-C or title two-D of this

article.

6. The benefits of this title shall be granted exclusively for

residential construction work or a combination of residential

construction work and commercial construction work described in approved

plans. The benefits of this title shall be granted exclusively for

residential construction work or a combination of residential

construction work and commercial construction work on existing buildings

or structures which, after completion of such construction work, will

qualify as mixed-use property. No benefits pursuant to this title shall

be granted for construction of a new building or structure.

7. Any tax lot which is partly located inside the mixed-use

construction exemption area shall be deemed to be entirely located

inside such area.

8. No benefits pursuant to this title shall be granted for any

residential construction work or combination of residential construction

work and commercial construction work unless the applicant shall file,

together with the application, an affidavit setting forth the following

information:

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

date of application for a certificate of eligibility, neither the

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

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

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

adjudicated by a court of competent jurisdiction to have violated

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

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

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

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

finally adjudicated to have violated such law; and

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

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

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

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

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

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

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

whom the applicant or person owning a substantial interest in the

property is an officer, director or general partner.

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

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

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

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

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

subdivision is finally adjudicated by a court of competent jurisdiction

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

cease to be eligible for benefits pursuant to this title and shall pay,

with interest, any taxes for which an exemption was claimed pursuant to

this title.

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

whether any charges alleging violation by the recipient or any person

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

or general partner of the recipient or person owning a substantial

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

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

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

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

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

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

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

10. In addition to any other qualifications for exemption from payment

of taxes set forth in this title, an applicant must be:

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

exemption is sought, whether such obligation arises because of record

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

has been assumed by contract; or

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

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

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

with such owner or lessee.

11. A co-applicant with a public entity shall be an eligible recipient

pursuant to this title, provided that for such period as the property

which is the subject of the certificate of eligibility is exempt from

real property taxation because it is owned or controlled by a public

entity no benefits shall be available to such recipient pursuant to this

title. Such recipient shall receive benefits pursuant to this title when

such property ceases to be eligible for exemption pursuant to other

provisions of law, as follows: the recipient shall, commencing with the

date such tax exemption ceases, and continuing until the expiration of

the benefit period pursuant to this title, receive the benefits to which

such recipient is entitled in the corresponding tax year pursuant to

this title.

12. Notwithstanding the provisions of any local law for the

stabilization of rents in multiple dwellings or the emergency tenant

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

property which is the subject of a certificate of eligibility pursuant

to this title shall be fully subject to control under such local law,

unless exempt under such local law from control by reason of the

cooperative or condominium status of the dwelling unit, for the entire

period for which such property is receiving benefits pursuant to this

title, provided, however, that for purposes of this subdivision, a

property receiving benefits pursuant to this title whose benefits are

suspended, terminated or revoked by the department of finance shall be

deemed to be receiving benefits for the length of time such benefits

would have been received if such benefits had not been suspended,

terminated or revoked, or for the period such local law is in effect,

whichever is shorter. Thereafter, such rents shall continue to be

subject to such control, except that such rents that would not have been

subject to such control but for this subdivision, shall be decontrolled

if the landlord has included in each lease and renewal thereof for such

unit for the tenant in residence at the time of such decontrol a notice

in at least twelve point type informing such tenant that the unit shall

become subject to such decontrol upon the expiration of benefits

pursuant to this title.