N.Y. Real Property Tax Law § 499-c: Eligibility requirements

§ 499-c. Eligibility requirements. 1. No abatement shall be granted

pursuant to this title unless:

(a) the landlord enters into a lease for eligible premises with a new

tenant or a renewal tenant and:

(1) the lease commencement date is within the eligibility period;

(2) (i) if, by the sixtieth day following the rent commencement date,

such new or renewal tenant employs one hundred twenty-five or fewer

employees in the eligible premises, the initial lease term is for a

period of at least five years or, with respect to a lease commencing on

or after April first, nineteen hundred ninety-seven, the initial lease

term is for a period of at least three years; or (ii) if, by the

sixtieth day following the rent commencement date, such new or renewal

tenant employs more than one hundred twenty-five employees in the

eligible premises, the initial lease term is for a period of at least

ten years; and

(3) (i) if the lease is with a new tenant required to sign a lease

with an initial lease term of at least five years, expenditures on

improvements to the eligible premises and the common areas of the

eligible building are in an amount at least equal to ten dollars per

square foot, provided, however, that with respect to a lease commencing

on or after April first, nineteen hundred ninety-seven, if, by the

sixtieth day following the rent commencement date, the new tenant

employs one hundred twenty-five or fewer employees in the eligible

premises, expenditures on improvements to the eligible premises and the

common areas of the eligible building are in an amount at least equal to

five dollars per square foot; or (ii) if the lease is with a new tenant

required to sign a lease with an initial lease term of at least ten

years, expenditures on improvements to the eligible premises and the

common areas of the eligible building are in an amount at least equal to

thirty-five dollars per square foot; or (iii) if the lease is with a

renewal tenant, expenditures on improvements to the eligible premises

and the common areas of the eligible building are in an amount at least

equal to ten dollars per square foot for any premises previously

occupied by such renewal tenant, provided, however, that with respect to

a lease commencing on or after April first, nineteen hundred

ninety-seven, if, by the sixtieth day following the rent commencement

date, the renewal tenant employs one hundred twenty-five or fewer

employees in the eligible premises previously occupied by such renewal

tenant, expenditures on improvements to the eligible premises and the

common areas of the eligible building are in an amount at least equal to

five dollars per square foot; and in an amount at least equal to the

amount specified in clause (i) or (ii) of this subparagraph, depending

upon the required initial lease term, for any premises not previously

occupied by such renewal tenant; or

(b) the landlord enters into a lease with an expansion tenant for

expansion premises and:

(1) the lease commencement date is within the eligibility period;

(2) (i) if, by the sixtieth day following the rent commencement date,

such expansion tenant employs one hundred twenty-five or fewer employees

in the expansion premises, the initial lease term for the expansion

premises is for a period of at least five years or, with respect to a

lease commencing on or after April first, nineteen hundred ninety-seven,

the initial lease term is for a period of at least three years; or (ii)

if, by the sixtieth day following the rent commencement date, such

expansion tenant employs more than one hundred twenty-five employees in

such expansion premises, the initial lease term for the expansion

premises is for a period of at least ten years; and

(3) (i) if the lease is with an expansion tenant required to sign a

lease with an initial lease term of at least five years, expenditures on

improvements to the expansion premises and the common areas of the

eligible building are in an amount at least equal to ten dollars per

square foot, provided, however, that with respect to a lease commencing

on or after April first, nineteen hundred ninety-seven, if, by the

sixtieth day following the rent commencement date, the expansion tenant

employs one hundred twenty-five or fewer employees in the expansion

premises, expenditures on improvements to the expansion premises and the

common areas of the eligible building are in an amount at least equal to

five dollars per square foot; or (ii) if the lease is with an expansion

tenant required to sign a lease with an initial lease term of at least

ten years, expenditures on improvements to the expansion premises and

the common areas of the eligible building are in an amount at least

equal to thirty-five dollars per square foot.

2. No abatement shall be granted pursuant to this title if an

applicant shall fail to meet any of the requirements of this title

within sixty days of the rent commencement date; provided that for a

lease with a renewal tenant, the expenditures on improvements required

by subdivision one of this section shall be made within one year of the

lease commencement date.

3. (a) For purposes of determining whether the amount of expenditures

required by subdivision one of this section have been satisfied,

expenditures on improvements to the common areas of an eligible building

shall be included only if work on such improvements commenced and the

expenditures are made on or after April first, nineteen hundred

ninety-five and on or before September thirtieth, two thousand

twenty-eight; provided, however, that expenditures on improvements to

the common areas of an eligible building made prior to three years

before the lease commencement date shall not be included.

(b) The landlord may allocate expenditures on improvements to the

common areas of an eligible building to eligible tenants in such manner

as reasonably relates to such eligible tenants.

4. For purposes of this title, the expiration date of a lease shall be

determined by the expiration date set forth in such lease, without

giving effect to any rights of the landlord or the tenant to terminate

such lease prior to the expiration date set forth therein.

5. The lease for the eligible premises shall contain the following

provisions:

(a) a statement of the tenant's percentage share;

(b) a statement informing the tenant in at least twelve-point type

that:

(1) an application for abatement of real property taxes pursuant to

this title will be made for the premises;

(2) the rent, including amounts payable by the tenant for real

property taxes, will accurately reflect any abatement of real property

taxes granted pursuant to this title for the premises;

(3) at least ten dollars per square foot or thirty-five dollars per

square foot must be spent on improvements to the premises and the common

areas, the amount being dependent upon the length of the lease and

whether it is a new or a renewal lease, provided, however, that with

respect to a lease commencing on or after April first, nineteen hundred

ninety-seven, if, by the sixtieth day following the rent commencement

date, the tenant employs one hundred twenty-five or fewer employees in

the relevant premises, at least five dollars per square foot must be

spent on improvements to the premises and the common areas; and

(4) all abatements granted with respect to a building pursuant to this

title will be revoked if, during the benefit period, real estate taxes

or water or sewer charges or other lienable charges are unpaid for more

than one year, unless such delinquent amounts are paid as provided in

subdivision four of section four hundred ninety-nine-f of this title.

6. No abatement shall be granted pursuant to this title if:

(a) a tenant has relocated from any area of the borough of Manhattan

north of the center line of 96th Street or from any portion of the

boroughs of the Bronx, Brooklyn, Queens, or Staten Island;

(b) the lease for the eligible premises provides that during the

initial lease term required by subdivision one of this section either

the landlord or the tenant may terminate such lease prior to the

expiration date of such required initial lease term; provided that such

lease may provide that either the landlord or the tenant may terminate

such lease if (1) the other party is in default of any of such party's

obligations under the lease, (2) the eligible premises are damaged or

destroyed by fire or other casualty, (3) the eligible premises are

rendered unusable for any reason not attributable to any act or failure

to act of either tenant or landlord, or (4) the eligible premises are

acquired by eminent domain; and

(c) there are real property taxes, water or sewer charges or other

lienable charges currently due and owing on the eligible building which

is the subject of an application for abatement pursuant to this title,

unless such real property taxes or charges are currently being paid in

timely installments pursuant to a written agreement with the department

of finance or other appropriate agency.

7. No abatement shall be granted pursuant to this title 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 abatement, neither the

applicant nor any person owning a substantial interest in the eligible

building 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 eligible

building 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 eligible building is an officer, director or general

partner.

(c) for purposes of this subdivision and subdivision seven of section

four hundred ninety-nine-f of this title, "substantial interest" shall

mean ownership and control of an interest of ten per centum or more in

the eligible building or in any person owning the eligible building.