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New York Real Property Tax Law Section 421-a - Exemption Of New Multiple Dwellings From Local Taxation.Legal Research Home > New York Lawyer > Real Property Tax > New York Real Property Tax Law Section 421-a - Exemption Of New Multiple Dwellings From Local Taxation.
§ 421-a. Exemption of new multiple dwellings from local taxation. 1.
The following terms, whenever used or referred to in this section, shall
have the following meaning, unless a different meaning clearly appears
in the context.
a. "Adjusted Monthly Rent." The rent payable per month as provided in
the first effective lease or occupancy agreement upon initial occupancy
of a rental dwelling unit of a multiple dwelling after construction
aided by exemption under this section less the cost of providing parking
facilities and electricity, gas, cooking fuel and other utilities other
than heat and hot water to occupants of such dwelling units.
b. "Floor area." The horizontal areas of the several floors or any
portion thereof of a dwelling or dwellings and accessory structures on a
lot measured from the exterior faces of exterior walls or from the
center line of party walls.
c. "Multiple Dwelling." A dwelling which is to be occupied or is
occupied as the residence or home of three or more families living
independently of one another, whether such dwelling is rented or owned
as a cooperative or condominium. A new multiple dwelling shall include
new residential construction and the concurrent conversion, alteration
or improvement of a pre-existing building or structure provided that (i)
for all tax lots now existing or hereafter created, no more than
forty-nine percent of the floor area (as defined in paragraph b of this
subdivision) of the multiple dwelling consists of the pre-existing
building or structure that was converted, altered or improved, and (ii)
for tax lots in the city of New York now existing or hereafter created
within the following area in the borough of Manhattan, the new
residential construction and/or the concurrent conversion, alteration or
improvement of the pre-existing building or structure is 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 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.
d. "Room Count." Two and one-half rooms for each dwelling unit plus
one room for each bedroom plus one room for each additional room
separated by either walls or doors plus one-half room for a balcony,
provided that kitchens, bathrooms or corridors shall not count as such
additional rooms.
2. (a) (i) Within a city having a population of one million or more,
new multiple dwellings, except hotels, shall be exempt from taxation for
local purposes, other than assessments for local improvements, for the
tax year or years immediately following taxable status dates occurring
subsequent to the commencement and prior to the completion of
construction, but not to exceed three such tax years, and shall continue
to be exempt from such taxation in tax years immediately following the
taxable status date first occurring after the expiration of the
exemption herein conferred during construction so long as used at the
completion of construction for dwelling purposes for a period not to
exceed ten years in the aggregate after the taxable status date
immediately following the completion thereof, as follows:
(A) except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, and for two years following such period;
(B) followed by two years of exemption from eighty per cent of such
taxation;
(C) followed by two years of exemption from sixty per cent of such
taxation;
(D) followed by two years of exemption from forty per cent of such
taxation;
(E) followed by two years of exemption from twenty per cent of such
taxation;
The following table shall illustrate the computation of the tax
exemption:
CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
Exemption
During Construction (maximum three years) 100%
Following completion of work
Year:
1 100%
2 100%
3 80
4 80
5 60
6 60
7 40
8 40
9 20
10 20
(ii) (A) Within a city having a population of one million or more the
local housing agency may adopt rules and regulations providing that
except in areas excluded by local law new multiple dwellings, except
hotels, shall be exempt from taxation for local purposes, other than
assessments for local improvements, for the tax year or years
immediately following taxable status dates occurring subsequent to the
commencement and prior to the completion of construction, but not to
exceed three such tax years, and shall continue to be exempt from such
taxation in tax years immediately following the taxable status date
first occurring after the expiration of the exemption herein conferred
during such construction so long as used at the completion of
construction for dwelling purposes for a period not to exceed fifteen
years in the aggregate, as follows:
a. except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, and for eleven years following such period;
b. followed by one year of exemption from eighty percent of such
taxation;
c. followed by one year of exemption from sixty percent of such
taxation;
d. followed by one year of exemption from forty percent of such
taxation;
e. followed by one year of exemption from twenty percent of such
taxation.
(B) The benefits of this subparagraph shall not be available in areas
made ineligible for the benefits of this section by a local law enacted
pursuant to paragraph (i) of subdivision two of this section,
notwithstanding any exceptions to ineligibility contained in such local
law for certain types of projects in such areas.
(C) Unless excluded by local law, in the city of New York the benefits
of this subparagraph shall be available in the borough of Manhattan for
tax lots now existing or hereafter created south of or adjacent to
either side of one hundred tenth street only if:
a. the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or
instrumentality, or
b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units be affordable to families of low and
moderate income.
The following table shall illustrate the computation of the exemption:
CONSTRUCTION OF CERTAIN
MULTIPLE DWELLINGS
Exemption
During Construction (maximum three years) 100%
Following completion of work
Year:
1 through 11 100%
12 80
13 60
14 40
15 20
(iii) (A) Within a city having a population of one million or more the
local housing agency may adopt rules and regulations providing that new
multiple dwellings, except hotels, shall be exempt from taxation for
local purposes, other than assessments for local improvements, for the
tax year or years immediately following taxable status dates occurring
subsequent to the commencement and prior to the completion of
construction, but not to exceed three such tax years, and shall continue
to be exempt from such taxation in tax years immediately following the
taxable status date first occurring after the expiration of the
exemption herein conferred during such construction so long as used at
the completion of construction for dwelling purposes for a period not to
exceed twenty-five years in the aggregate, provided that the area in
which the project is situated is a neighborhood preservation program
area as determined by the local housing agency as of June first,
nineteen hundred eighty-five, or is a neighborhood preservation area as
determined by the New York city planning commission as of June first,
nineteen hundred eighty-five, or is an area that was eligible for
mortgage insurance provided by the rehabilitation mortgage insurance
corporation as of May first, nineteen hundred ninety-two or is an area
receiving funding for a neighborhood preservation project pursuant to
the neighborhood reinvestment corporation act (42 U.S.C. §𨴌 et seq.)
as of June first, nineteen hundred eighty-five, as follows:
a. except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, and for twenty-one years following such period;
b. followed by one year of exemption from eighty percent of such
taxation;
c. followed by one year of exemption from sixty percent of such
taxation;
d. followed by one year of exemption from forty percent of such
taxation;
e. followed by one year of exemption from twenty percent of such
taxation.
(B) The benefits of this subparagraph shall not be available in areas
made ineligible for the benefits of this section by a local law enacted
pursuant to paragraph (i) of subdivision two of this section,
notwithstanding any exceptions to ineligibility contained in such local
law for certain types of projects.
(C) Notwithstanding the provisions of item (A) or (D) of this
subparagraph, in the city of New York the benefits of this subparagraph
shall not be available in the borough of Manhattan for tax lots now
existing or hereafter created south of or adjacent to either side of one
hundred tenth street.
(D) In addition to being available in the areas described in item (A)
of this subparagraph, the benefits made available pursuant to this
subparagraph shall be available where:
a. the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or
instrumentality, or
b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units be affordable to families of low and
moderate income.
The following table shall illustrate the computation of the exemption:
CONSTRUCTION OF CERTAIN
MULTIPLE DWELLINGS
Exemption
During Construction (maximum three years) 100%
Following completion of work
Year:
1 through 21 100%
22 80
23 60
24 40
25 20
(iv) (A) Unless excluded by local law, in the city of New York, the
benefits of this subparagraph shall be available in the borough of
Manhattan for new multiple dwellings on tax lots now existing or
hereafter created south of or adjacent to either side of one hundred
tenth street which commence construction after July first, nineteen
hundred ninety-two and before December thirty-first, two thousand seven
only if:
a. the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or
instrumentality, or
b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units are affordable to families of low and
moderate income.
(B) Such new multiple dwellings, except hotels, shall be exempt from
taxation for local purposes, other than assessments for local
improvements for the tax year or years immediately following taxable
status dates occurring subsequent to the commencement and prior to the
completion of construction, but not to exceed three such tax years, and
shall continue to be exempt from such taxation in tax years immediately
following the taxable status dates first occurring after the expiration
of the exemption herein conferred during such construction so long as
used at the completion of construction for dwelling purposes for a
period not to exceed twenty years in the aggregate, as follows:
a. except as otherwise provided herein, there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, and for twelve years following such period;
b. followed by two years of exemption from eighty percent of such
taxation;
c. followed by two years of exemption from sixty percent of such
taxation;
d. followed by two years of exemption from forty percent of such
taxation;
e. followed by two years of exemption from twenty percent of such
taxation.
The following table shall illustrate the computation of the exemption:
CONSTRUCTION OF CERTAIN
MULTIPLE DWELLINGS
During construction (maximum three years) Exemption 100%
Following completion of work year:
1 through 12 100%
13-14 80%
15-16 60%
17-18 40%
19-20 20%
(b) In addition to the taxes payable pursuant to the table above, the
owner shall pay in each tax year in which such full or partial exemption
is in effect, real property taxes and assessments as follows:
(i) real property taxes on the assessed valuation of such land and any
improvements thereon in effect during the tax year preceding the
commencement of such construction without regard to any exemption or
abatement from real property taxation in effect prior to such
construction which real property taxes shall be calculated on the tax
rate in effect at the time such taxes are due; and
(ii) all assessments for local improvements.
(c) Such multiple dwellings shall be eligible for exemption from
taxation pursuant to this section only if:
(i) exemption from taxes is not availed of concurrently under any
other law and that on or after July first, nineteen hundred seventy-six
no preliminary certificate of eligibility or certificate of eligibility
issued under this section may be rescinded by the local housing agency
to avail the property of the benefits of tax exemption or tax abatement
for rehabilitation or new construction under the provisions of any other
law, but that prior to July first, nineteen hundred seventy-six the
local housing agency may rescind such certificates to avail the property
of the benefits of tax exemption or tax abatement under the provisions
of any other law;
(ii) construction is commenced after January first, nineteen hundred
seventy-five and before December thirty-first, two thousand seven
provided, however, that such commencement period shall not apply to
multiple dwellings eligible for benefits under subparagraph (iv) of
paragraph (a) of this subdivision;
(iii) in the event that, immediately prior to commencement of new
construction, such land was improved with a residential building or
buildings that have since been substantially demolished, and the new
building or buildings contain more than twenty dwelling units, then such
new construction shall contain at least five dwelling units for each
class A dwelling unit in existence immediately prior to the demolition
preceding construction; and
(iv) in the event that a project contains more than 100 dwelling
units, at least 15 per cent of the dwelling units contain at least three
and one-half rooms and at least 10 per cent of the dwelling units
contain at least four and one-half rooms, unless a waiver from such
requirements is granted by the local housing agency based on hardship.
(d) As of July first, nineteen hundred seventy-five, if the aggregate
floor area of commercial, community facility and accessory use space
exceeds twelve per cent of the aggregate floor area, as defined herein,
of any building granted tax exemption pursuant to this section on or
subsequent to July first, nineteen hundred seventy-one, tax exemption
shall be reduced by an amount equal to the per cent of the aggregate
floor area by which the aggregate floor area of commercial, community
facility and accessory use space exceeds twelve per cent of the
aggregate floor area of the building provided, however, that accessory
use space shall not include accessory parking located not more than
twenty-three feet above the curb level and provided, further, that
whenever a building containing two or more separately assessed parcels
of real property has commercial, community facility and accessory use
space in excess of such twelve percent, the tax arising out of the
reduction in exemption for such excess space shall not be apportioned
pro rata among all of the separately assessed parcels in the building
but shall be applied first to those separately assessed parcels which
are unrelated to the residential use of the building; and only after
such unrelated parcels are fully taxable shall the remainder of such tax
be apportioned pro rata among the remaining separately assessed parcels
and provided further, that no such exemption for commercial, community
facility and accessory use space shall be applicable prior to July
first, nineteen hundred seventy-five. To be eligible for exemption under
this section such construction shall take place on land which,
thirty-six months prior to the commencement of such construction, was
vacant, predominantly vacant, under-utilized, or improved with a
non-conforming use, provided that if such new multiple dwelling
displaces or replaces a building or buildings containing more than
twenty-five occupied dwelling units in existence on December
thirty-first, nineteen hundred seventy-four and administered under the
local emergency housing rent control act, the rent stabilization law of
nineteen hundred sixty-nine, or the emergency tenant protection act of
nineteen seventy-four, such new multiple dwelling shall not be eligible
in the city of New York unless a certificate of eviction has been issued
for any of the displaced or replaced units pursuant to the powers
granted by the city rent and rehabilitation law, and that the sale,
transfer or utilization of air rights over residential buildings that
were not demolished shall not be construed as a displacement or
replacement of the dwelling units contained within those buildings
within the meaning of this subdivision.
(e) Any provision of this section to the contrary notwithstanding, the
following properties shall not be eligible for exemption:
(i) any multiple dwelling located in any geographical area where the
exemption is eliminated by regulations promulgated by the local housing
agency, pursuant to subdivision three of this section, upon a finding by
the local housing agency that the need for the tax incentive in such
area has been significantly reduced, or that an area should be preserved
for mainly non-residential purposes in accordance with local municipal
policy; unless construction actually commenced prior to January first,
nineteen hundred eighty-two; provided that the local housing agency
shall not reduce or eliminate such exemption with respect to multiple
dwellings of less than four stories in height, as stories are defined in
the multiple dwelling law, except in areas to be preserved for mainly
non-residential purposes provided further that no regulation regarding
such geographical limitation shall eliminate benefits available pursuant
to this section for construction which is commenced within two years
from the effective date of such regulation, except in areas to be
preserved for mainly non-residential purposes;
(ii) any land which is mapped as a public park, provided, however,
that this exclusion from eligibility for exemption shall not apply to
any land which has been mapped as a public park but which, for a period
of ten years or more after the date of such mapping, has not been
acquired by the state or the city in which such land is located and with
respect to which land the local department of parks and recreation has
determined that such land is not required for public park purposes, and
that such department has no intention of acquiring such land and that no
funds have been allocated for such purpose;
(iii) any land which has been utilized for ten or more consecutive
years prior to October first, nineteen hundred seventy-one as a "private
park" as hereinafter defined. A private park is a privately owned zoning
lot in a densely developed area having a minimum size of four thousand
square feet, free of all developments and containing only trees, grass,
benches, walkways and passive recreational facilities including
structures incidental thereto which has been used and maintained during
said period for such passive recreational activity by the general public
without charge with the consent and participation of the owner thereof;
where construction is commenced after December thirty-first, nineteen
hundred seventy-two, eligibility shall be determined on the basis of the
condition of the land on the first day of October, nineteen hundred
seventy-one.
(f) 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 unit shall be
fully subject to control under such local law or such act, unless exempt
under such local law or such act from control by reason of the
cooperative or condominium status of the unit, for the entire period
during which the property is receiving tax benefits pursuant to this
section for the period any such applicable law or act is in effect,
whichever is shorter. Thereafter, such rents shall continue to be
subject to such control to the same extent and in the same manner as if
this section had never applied thereto, except that such rents shall be
decontrolled if:
(i) with respect to units subject to the provisions of this section on
the effective date of this subparagraph such a unit becomes vacant after
the expiration of such ten year period or applicable law or act;
provided, however, that such units may be decontrolled pursuant to the
rent regulation reform act of 1993 and provided further that the rent
shall not be decontrolled for a unit which the commissioner of housing
and community renewal or a court of competent jurisdiction finds became
vacant because the landlord or any person acting on his behalf engaged
in any course of conduct, including but not limited to, interruption or
discontinuance of essential services which interfered with or disturbed
or was intended to interfere with or disturb the comfort, repose, peace
or quiet of the tenant in his use or occupancy of such unit, and, that
upon such finding in addition to being subject to any other penalties or
remedies permitted by law, the landlord of such unit shall be barred
from collecting rent for such unit in excess of that charged to the
tenant who vacated such unit until restoration of possession of such
tenant, if the tenant so desires, in which case the rent of such tenant
shall be established as if such tenant had not vacated such unit, or
compliance with such other remedy, including, but not limited to, all
remedies provided for by the emergency tenant protection act of nineteen
seventy-four for rent overcharge or failure to comply with any order of
the commissioner of housing and community renewal, as shall be
determined by the commissioner of housing and community renewal to be
appropriate; provided, however, that if a tenant fails to accept any
such offer of restoration of possession, such unit shall return to rent
stabilization at the previously regulated rent; or
(ii) with respect to units which become subject to the provisions of
this section after the effective date of this subparagraph, such tax
benefit period as provided in the opening paragraph of this paragraph or
applicable law or act shall have expired and either each lease and
renewal thereof for such unit for the tenant in residence at the time of
such decontrol has included a notice in at least twelve point type
informing such tenant that the unit shall become subject to such
decontrol upon the expiration of such tax benefit period as provided in
the opening paragraph of this paragraph or applicable law or act and
states the approximate date on which such tax benefit period as provided
in the opening paragraph of this paragraph is scheduled to expire; or
such unit becomes vacant as provided under subparagraph (i) of this
paragraph.
(g) For purposes of this section construction shall be deemed
"commenced" when excavation or alteration has begun in good faith on the
basis of approved construction plans.
(h) Anything in this section to the contrary notwithstanding, with
regard to a project consisting of two or more multiple dwellings
constructed on a contiguous site and containing an aggregate of not less
than one thousand dwelling units, each of such multiple dwellings shall
be entitled to the exemption set forth herein provided construction of
such project be commenced before January first, nineteen hundred
seventy-eight and completed no later than a date certain fixed by the
local housing agency not to exceed four years from the date of
commencement of construction of such project.
(i) Authority of city to enact local law. Except as otherwise
specified in this section, a city to which this section is applicable
may enact a local law to restrict, limit or condition the eligibility,
scope or amount of the benefits under this section in any manner
provided that such local law may not grant benefits beyond those
provided in this section and provided further that in the city of New
York such local law shall not take effect sooner than one year after it
is enacted.
3. Application forms for exemption under this section shall be filed
with the assessors between February first and March fifteenth and, based
on the certification of the local housing agency as herein provided, the
assessors shall certify to the collecting officer the amount of taxes to
be abated. If there be in a city of one million population or more a
department of housing preservation and development, the term "housing
agency" shall mean only such department of housing preservation and
development. No such application shall be accepted by the assessors
unless accompanied by a certificate of the local housing agency
certifying the applicant's eligibility pursuant to subdivisions two and
four of this section. No such certification of eligibility shall be
issued by the local housing agency until such agency determines the
initial adjusted monthly rent to be paid by tenants residing in rental
dwelling units contained within the multiple dwelling and the
comparative adjusted monthly rent that would have to be paid by such
tenants if no tax exemption were applicable as provided by this section.
The initial adjusted monthly rent will be certified by the local housing
agency as the first rent for the subject dwelling units. A copy of such
certification with respect to such units shall be attached by the
applicant to the first effective lease or occupancy agreement. The
initial adjusted monthly rent shall reflect the full tax exemption
benefits as approved by the agency.
The agency shall determine the amount of the initial adjusted monthly
rent as follows:
(i) The total project cost shall be determined by adding the following
items:
(a) Land acquisition cost or purchase price, if purchased within two
years prior to the date on which construction or alteration is
commenced; or land acquisition cost or purchase price or an appraisal
prepared by a qualified independent appraiser, in such form as is
acceptable to the agency, if purchased more than two years prior to such
date. Land acquisition cost or purchase price, where used, shall be
certified to by an independent certified public accountant;
(b) Costs incurred in the process of preparing the site for
construction, including but not limited to operating losses, relocation
expenses, demolition expenses and carrying charges, such costs to be
certified by an independent certified public accountant to a date not
more than ninety days prior to the filing of an application for
certification of eligibility and the balance of such costs to be
estimated;
(c) Construction costs for constructing or rehabilitating the multiple
dwelling as determined by the agency in accordance with subdivision four
of this section, plus such amount, if any, representing unique and
special costs as may be allowed by the agency for a particular multiple
dwelling;
(d) An allowance for estimated off-site costs, including but not
limited to architects, engineers and legal fees, interest and taxes
during construction, insurance, title and mortgage fees, as determined
by the agency in accordance with subdivision four of this section, and
(e) such other amounts as are ordinarily and customarily incurred in
connection with the construction or rehabilitation of a multiple
dwelling, as determined by the agency in accordance with subdivision
four of this section.
(ii) The total expenses of the multiple dwelling shall be determined
by adding the following items:
(a) The amount that the agency determines to be the reasonable annual
costs for the continuing maintenance and operation of the multiple
dwelling in accordance with subdivision four of this section;
(b) The amount that the agency determines to be an appropriate annual
provision for vacancies, contingency reserves and management fees in
accordance with subdivision four of this section.
(c) The projected real property taxes to be levied on the multiple
dwelling and the land on which it is situated at the time of estimated
initial occupancy;
(d) Fourteen (14) per cent of the total project cost, as hereinabove
defined, which amount will include all expenses for debt service; and
(e) Deducting from said total the estimated annual income to be
derived from any commercial, community facility or accessory use space
in the building.
(iii) The total expenses shall be divided by the room count to provide
the adjusted monthly rent per room per month.
(iv) The adjusted monthly rent per room per month shall be multiplied
by the room count of each rental dwelling unit to provide the initial
adjusted monthly rent for such dwelling unit. The agency may allow
adjustments in the initial adjusted monthly rent for any particular
dwelling units provided that the total of the initial adjusted monthly
rents for all of the rental dwelling units in a multiple dwelling shall
not exceed the total expenses of such multiple dwelling.
The agency shall determine the estimated comparative adjusted monthly
rent that would have to be paid if no tax exemption were applicable as
provided by this section by adding to the adjusted monthly rent for each
dwelling unit as hereinabove computed an amount equal to (a) the
difference between the projected real property taxes which would be
levied on the multiple dwelling and the land on which it is situated at
the time estimated initial occupancy if no tax abatement were applicable
as provided by this section and the projected real property taxes
hereinabove utilized in connection with the computation of total
expenses; (b) divided by the room count of the building as per this
section; and (c) multiplied by the applicants approved room count of
each such dwelling unit.
The local housing agency may promulgate rules and regulations to carry
out the provisions of this section, not inconsistent with the provisions
hereof, and may require a reasonable filing fee in an amount provided by
such rules and regulations.
4. a. After a public hearing the housing agency shall promulgate
annually to take effect as of January first of each year the amounts
that it determines to be the reasonable amounts in such categories and
classifications as may be established by the housing agency, for such
items as are generally applicable to all developments and are required
to be determined pursuant to subdivision three of this section, which
amounts shall be filed with the city clerk and published in a
publication of general circulation in the city or the city record, if
any, upon adoption by the housing agency.
b. The local housing agency may require a filing fee not to exceed the
greater of (i) four-tenths of one percent of the total project cost, or
(ii) if the building will be owned as a cooperative or condominium,
four-tenths of one percent of the total project cost or four-tenths of
one percent of the total project sell-out price stated in the last
amendment to the offering plan accepted for filing by the attorney
general of the state, at the option of the applicant. Such total project
cost or total project sell-out price shall be determined pursuant to
rules promulgated by the local housing agency. Notwithstanding the
foregoing, the local housing agency may promulgate rules imposing an
additional fee if an application, or any part thereof, or submission in
connection therewith, is defective and such defect delays the processing
of such application or causes the local housing agency to expend
additional resources in the processing of such application.
c. The local housing agency may rely on certification by an architect
or engineer submitted by an applicant in connection with the filing of
an application for benefits pursuant to this section. A false
certification by such architect or engineer shall be deemed to be
professional misconduct pursuant to section sixty-five hundred nine of
the education law. Any licensee found guilty of such misconduct under
the procedures prescribed in section sixty-five hundred ten of the
education law shall be subject to the penalties prescribed in section
sixty-five hundred eleven of such law, and shall thereafter be
ineligible to submit a certification pursuant to this section.
5. An applicant for tax exemption under this section whose project
contains more than twenty dwelling units shall notify the local
community planning board for the area which is the subject of the
application within ten days of submission of the application to the
local housing agency. The local community planning board shall have a
forty-five day period to file objections to the applicant's eligibility
under subdivision two of this section, or to the applicant's failure to
comply with the standards adopted by the agency in accordance with
subdivision four of this section. The local community board may within
such time in its own discretion hold a public hearing to determine
whether or not any objections as to eligibility should be filed. In the
event the local community board files such objections, the local housing
agency shall make a determination and notify such board within
forty-five days. When an applicant's project contains more than one
hundred fifty dwelling units the local community board may within thirty
days of receipt of an applicant's notification request the local housing
agency to and the local housing agency shall hold a public hearing
solely on the questions of the applicant's eligibility under subdivision
two of this section or the applicant's failure to comply with the
standards adopted by the agency pursuant to subdivision four of this
section. The local housing agency shall hold this hearing and make its
determination and notify such board within forty-five days.
6. (a) When used in this subdivision unless a different meaning
clearly appears from the context, the following terms shall mean and
include:
(i) "Covered project." (A) A new building located within the
Greenpoint - Williamsburg waterfront exclusion area, (B) two or more
buildings which are part of one contiguous development entirely located
within the Greenpoint - Williamsburg waterfront exclusion area, (C) two
or more buildings which are located within the Greenpoint - Williamsburg
waterfront exclusion area and are part of a single development parcel
specifically identified in section 62-831 of the local zoning
resolution, or (D) where so authorized in writing by the local housing
agency, one or more buildings located within the Greenpoint -
Williamsburg waterfront exclusion area and one or more buildings located
outside the Greenpoint - Williamsburg waterfront exclusion area but
within Community District Number One in the borough of Brooklyn. The
cumulative number of affordable units located outside the Greenpoint -
Williamsburg waterfront exclusion area in all covered projects described
in clause (D) of this subparagraph shall not exceed two hundred. A
building located outside the Greenpoint - Williamsburg waterfront
exclusion area which is part of a covered project described in clause
(D) of this subparagraph shall not contain any affordable units with
respect to which an application pending before a governmental entity on
the effective date of this subdivision or a written agreement in effect
on the effective date of this subdivision provided for the development
of such affordable units.
(ii) "Greenpoint - Williamsburg waterfront exclusion area." Any tax
lots now existing or hereafter created which are located entirely within
the geographic area in the borough of Brooklyn bounded and described as
follows:
BEGINNING at the intersection of the bulkhead line in the East River
and South Fifth Street extended; thence easterly to South Fifth Street
and continuing along South Fifth Street to the intersection of Kent
Avenue; thence northerly along Kent Avenue to the intersection of South
Fourth Street, thence easterly along South Fourth Street to a point 320
feet from Kent Avenue; thence northerly to a point on South Third Street
320 feet from Kent Avenue; thence westerly on South Third Street to the
intersection of Kent Avenue; thence northerly along Kent Avenue to the
intersection of Grand Street; thence westerly along Grand Street to the
intersection of River Street; thence northerly along River Street to the
intersection of North Third Street; thence easterly along North Third
Street to the intersection of Kent Avenue; thence northerly along Kent
Avenue to the intersection of Franklin Street; thence northerly along
Franklin Street to the intersection of Quay Street; thence westerly
along Quay Street to the intersection of West Street; thence northerly
along West Street to the intersection of Eagle Street; thence easterly
along Eagle Street to the intersection of Franklin Street; thence
northerly along Franklin Street to the intersection of Dupont Street;
thence westerly along Dupont Street to the intersection of Commercial
Street; thence northerly along Commercial Street to the intersection of
Manhattan Avenue; thence northerly along Manhattan Avenue to its
northerly terminus; thence northerly to the intersection of Manhattan
Avenue extended and the bulkhead line in Newtown Creek, thence westerly
along the bulkhead line in Newtown Creek and continuing southerly along
the United States pierhead line in the East River to the place of
beginning; included in said area are all piers and other projections
from the bulkhead line into the East River or Newtown Creek.
(b) No benefits under the provisions of this section shall be
conferred on any covered project located in the Greenpoint -
Williamsburg waterfront exclusion area unless such project shall provide
affordable housing for persons and families of low and moderate income
that meets one of the following conditions:
(i) not less than twenty percent of the units in the covered project
are affordable to and occupied or available for occupancy by individuals
or families whose incomes at the time of initial occupancy do not exceed
eighty percent of the area median incomes adjusted for family size; or
(ii) not less than ten percent of the units in the covered project are
affordable to and occupied or available for occupancy by individuals or
families whose incomes at the time of initial occupancy do not exceed
eighty percent of the area median incomes adjusted for family size and
not less than an additional fifteen percent of the units in the covered
project are affordable to and occupied or available for occupancy by
individuals or families whose incomes at the time of initial occupancy
do not exceed one hundred twenty-five percent of the area median incomes
adjusted for family size.
(c) Unless affordable units are developed under a federal, state or
city program having contrary requirements, (i) all affordable units must
have a comparable number of bedrooms as market rate units and a unit mix
proportional to the market rate units, or (ii) at least fifty percent of
the affordable units must have two or more bedrooms and no more than
fifty percent of the remaining units can be smaller than one bedroom.
(d) Unless affordable units are developed under a federal or state
program having contrary requirements, residents of the local community
shall have priority for the purchase or rental of fifty percent of the
affordable units.
(e) In order to ensure that affordable units created pursuant to this
subdivision will continue to be affordable for the life of the covered
project, the local housing agency shall employ mechanisms, including,
but not limited to, regulatory agreements, deed restrictions, resale
restrictions, occupancy requirements, and such other instruments or
requirements as it may deem necessary, and shall establish legal
remedies to enforce such mechanisms.
(f) With respect to any covered project located entirely within the
Greenpoint - Williamsburg waterfront exclusion area, the period of tax
benefits awarded to any building in such covered project shall be the
same as the period of tax benefits awarded under clause (A) of
subparagraph (iii) of paragraph (a) of subdivision two of this section.
With respect to any covered project which includes one or more buildings
located outside the Greenpoint - Williamsburg waterfront exclusion area,
the period of tax benefits awarded to any building in such covered
project that is located within the Greenpoint - Williamsburg waterfront
exclusion area shall be the same as the period of tax benefits awarded
under clause (A) of subparagraph (ii) of paragraph (a) of subdivision
two of this section.
Last modified: August 26, 2006 |