New York Laws
Title 2 - Private Property
421-G - Exemption From Local Taxation of Certain Multiple Dwellings.

(a) "Aggregate floor area" shall mean the sum of the gross areas of
the several floors of a building, measured from the exterior faces of
exterior walls or from the center lines of walls separating two
buildings.
(b) "Applicant" shall mean any person obligated to pay real property
taxes on the property for which an exemption from or abatement of real
property taxes under this section is sought or in the case of exempt
property, the record owner or lessee thereof.
(c) "Benefit period" shall mean the period of time when a recipient is
eligible to receive benefits pursuant to subdivisions two and three of
this section.
(d) "Certificate of eligibility" shall mean the document issued by the
department of housing preservation and development certifying a tax lot
as eligible for benefits pursuant to this section.
(e) "Commencement of conversion" shall mean the date of issuance by
the department of buildings of a building permit for the conversion of a
non-residential building to an eligible multiple dwelling, provided
however that such permit is issued on or after July first, nineteen
hundred ninety-five and no later than June thirtieth, two thousand six.
(f) "Completion of conversion" shall mean the date of issuance by the
department of buildings of a temporary or permanent certificate of
occupancy for the portion of the building for which an application for a
certificate of eligibility is filed.
(g) "Eligible area" shall mean any area of a city having a population
of one million or more persons in which, subject to the applicable law
governing zoning in such city, tax benefits pursuant to this section for
eligible multiple dwellings are available, provided, however, that in
the city of New York, subject to the applicable law governing zoning in
such city, the eligible area in which tax benefits pursuant to this
section for eligible multiple dwellings are available shall mean the
area in the borough of Manhattan bounded by Murray Street on the north
starting at the intersection of West Street and Murray Street; running
easterly along the center line of Murray Street; connecting through City
Hall Park with the center line of Frankfort Street and running easterly
along the center lines of Frankfort and Dover Streets to the
intersection of Dover Street and South Street; running southerly along
the center line of South Street to Peter Minuit Plaza; connecting
through Peter Minuit Plaza to the center line of State Street and
running northwesterly along the center line of State Street to the
intersection of State Street and Battery Place; running westerly along
the center line of Battery Place to the intersection of Battery Place
and West Street; and running northerly along the center line of West
Street to the intersection of West Street and Murray Street.
(h) "Eligible multiple dwelling" shall mean a class A multiple
dwelling, except a hotel, created from conversion of a non-residential
building, provided, however, that such multiple dwelling is located
within an eligible area, and provided further, however, that the
aggregate floor area of commercial, community facility and accessory use
space within such multiple dwelling does not exceed twenty-five per
centum of the aggregate floor area of such multiple dwelling.
(i) "Non-residential building" shall mean a structure or portion of a
structure having at least one floor, a roof and at least three walls
enclosing all or most of the space used in connection with the structure
or portion of the structure, which has a certificate of occupancy for
commercial, manufacturing or other non-residential use for not less than
ninety per centum of the aggregate floor area of such structure or

portion of such structure, or other proof of such non-residential use as
is acceptable to the department of housing preservation and development.
(j) "Person" shall mean an individual, corporation, limited liability
company, partnership, association, agency, trust, estate, foreign or
domestic government or subdivision thereof, or other entity.
(k) "Recipient" shall mean an applicant to whom a certificate of
eligibility has been issued pursuant to this section, or the successor
in interest of such applicant, provided that where a person who has
entered into a lease or purchase agreement with the owner or lessee of
exempt property has been a co-applicant, such person or the successor in
interest of such person shall be the recipient.
2. (a) Within a city having a population of one million or more
persons, a tax lot containing an eligible multiple dwelling that is the
subject of a certificate of eligibility issued pursuant to this section
shall be exempt from real property taxation for local purposes, other
than assessments for local improvements, on the amount of the assessed
value attributable exclusively to the physical improvement, for a period
not to exceed twelve consecutive years beginning in the tax year
immediately following the issuance of a certificate of eligibility, so
long as such eligible multiple dwelling is used or held out for use for
dwelling purposes, except as otherwise provided herein. During the first
eight years, the exemption shall equal the amount of the assessed value
attributable exclusively to the physical improvement. During the ninth
year, the exemption shall equal eighty per centum of such amount; during
the tenth year, the exemption shall equal sixty per centum of such
amount; during the eleventh year, the exemption shall equal forty per
centum of such amount; and during the twelfth year, the exemption shall
equal twenty per centum of such amount.
The following table shall illustrate the computation of the exemption
pursuant to this paragraph:

Tax Year Following Percentage of
Date of Issuance of Applicable
Certificate of Eligibility Exemption
1 100%
2 100%
3 100%
4 100%
5 100%
6 100%
7 100%
8 100%
9 80%
10 60%
11 40%
12 20%
(b) Notwithstanding paragraph (a) of this subdivision, within a city
having a population of one million or more persons, a tax lot containing
an eligible multiple dwelling that is the subject of a certificate of
eligibility issued pursuant to this section and that is in a building
that, in accordance with procedures set forth in local law, was
designated as a landmark before completion of conversion shall be exempt
from real property taxation for local purposes, other than assessments
for local improvements, on the amount of the assessed value attributable
exclusively to the physical improvement, for a period not to exceed
thirteen consecutive years beginning in the tax year immediately
following the issuance of a certificate of eligibility, so long as such

eligible multiple dwelling is used or held out for use for dwelling
purposes, except as otherwise provided herein. During the first nine
years, the exemption shall equal the amount of the assessed value
attributable exclusively to the physical improvement. During the tenth
year, the exemption shall equal eighty per centum of such amount; during
the eleventh year, the exemption shall equal sixty per centum of such
amount; during the twelfth year, the exemption shall equal forty per
centum of such amount; and during the thirteenth year, the exemption
shall equal twenty per centum of such amount.
The following table shall illustrate the computation of the exemption
pursuant to this paragraph:

Tax Year Following Percentage of
Date of Issuance of Applicable
Certificate of Eligibility Exemption
1 100%
2 100%
3 100%
4 100%
5 100%
6 100%
7 100%
8 100%
9 100%
10 80%
11 60%
12 40%
13 20%

2-a. Within a city having a population of one million or more persons,
a tax lot containing a non-residential building shall be exempt from
real property taxation for local purposes, other than assessments for
local improvements, on the amount of the assessed value attributable
exclusively to the physical improvement, for the tax year immediately
following the first taxable status date that meets the following two
conditions: (i) such taxable status date occurs after the commencement
of conversion and (ii) such taxable status date is the first taxable
status date on which an increase in assessed value attributable to such
physical improvement has been assessed. Notwithstanding the foregoing
sentence, no such exemption shall be granted if completion of conversion
occurs before the fifteenth day of April following such taxable status
date. In the event that an exemption granted pursuant to this
subdivision is not reflected on the final assessment roll prepared on
the basis of such taxable status date, the commissioner of finance is
hereby authorized to refund or credit in the fiscal year relating to
such taxable status date or in the next following fiscal year an amount
equivalent to the exempt amount multiplied by the applicable tax rate.
In addition to any other basis for revocation of an exemption granted
pursuant to this section, the exemption granted pursuant to this
subdivision to a non-residential building shall be revoked if such
building is not converted into an eligible multiple dwelling that is the
subject of a certificate of eligibility issued pursuant to this section.
3. (a) Within a city having a population of one million or more
persons, in addition to the benefits set forth in subdivision two of
this section, a tax lot containing an eligible multiple dwelling that is
the subject of a certificate of eligibility issued pursuant to this
section shall receive an abatement of real property taxes for a period
not to exceed fourteen consecutive years beginning in the tax year

immediately following the issuance of a certificate of eligibility, so
long as such eligible multiple dwelling is used or held out for use for
dwelling purposes, except as otherwise provided herein. During the first
year, the abatement shall be equal to the amount of the real property
tax that would have been due but for such abatement, provided, however,
that if the tax lot, during the first year of such abatement, was fully
or partially exempt from real property taxes, other than pursuant to the
exemption authorized by this section, then the abatement shall equal the
amount of the real property tax that would have been due but for such
full or partial exemption. During the second through tenth years, the
abatement shall equal one hundred per centum of such amount; during the
eleventh year, the abatement shall equal eighty per centum of such
amount; during the twelfth year, the abatement shall equal sixty per
centum of such amount; during the thirteenth year, the abatement shall
equal forty per centum of such amount; and during the fourteenth year,
the abatement shall equal twenty per centum of such amount.
The following table shall illustrate the computation of the abatement
pursuant to this paragraph:

Tax Year Following Percentage of
Date of Issuance of Applicable
Certificate of Eligibility Abatement
1 100%
2 100%
3 100%
4 100%
5 100%
6 100%
7 100%
8 100%
9 100%
10 100%
11 80%
12 60%
13 40%
14 20%
(b) Notwithstanding paragraph (a) of this subdivision, within a city
having a population of one million or more persons, in addition to the
benefits set forth in subdivision two of this section, a tax lot
containing an eligible multiple dwelling that is the subject of a
certificate of eligibility issued pursuant to this section and that is
in a building that, in accordance with procedures set forth in local
law, was designated as a landmark before completion of conversion shall
receive an abatement of real property taxes for a period not to exceed
fifteen consecutive years beginning in the tax year immediately
following the issuance of a certificate of eligibility, so long as such
eligible multiple dwelling is used or held out for use for dwelling
purposes, except as otherwise provided herein. During the first year,
the abatement shall be equal to the amount of the real property tax that
would have been due but for such abatement, provided, however, that if
the tax lot, during the first year of such abatement, was fully or
partially exempt from real property taxes, other than pursuant to the
exemption authorized by this section, then the abatement shall equal the
amount of the real property tax that would have been due but for such
full or partial exemption. During the second through eleventh years, the
abatement shall equal one hundred per centum of such amount; during the
twelfth year, the abatement shall equal eighty per centum of such

amount; during the thirteenth year, the abatement shall equal sixty per
centum of such amount; during the fourteenth year, the abatement shall
equal forty per centum of such amount; and during the fifteenth year,
the abatement shall equal twenty per centum of such amount.
The following table shall illustrate the computation of the abatement
pursuant to this paragraph:

Tax Year Following Percentage of
Date of Issuance of Applicable
Certificate of Eligibility Abatement
1 100%
2 100%
3 100%
4 100%
5 100%
6 100%
7 100%
8 100%
9 100%
10 100%
11 100%
12 80%
13 60%
14 40%
15 20%
(c) If, as a result of application to the tax commission or a court
order or action by the department of finance, the billable assessed
value is reduced, the department of finance shall recalculate the
abatement utilizing such reduced billable assessed value. The amount
equal to the difference between the abatement originally granted and the
abatement as so recalculated shall be deducted from any refund otherwise
payable or remission otherwise due as a result of such reduction in
billable assessed value, and any balance of such amount remaining unpaid
after making any such deduction shall be paid to the department of
finance within thirty days from the date of mailing by the department of
finance of a notice of the amount payable. Such amount payable shall
constitute a tax lien on the eligible multiple dwelling as of the date
of such notice and, if not paid within such thirty-day period, penalty
and interest at the rate applicable to delinquent taxes on such eligible
multiple dwelling shall be charged and collected on such amount from the
date of such notice to the date of payment.
4. If the aggregate floor area of commercial, community facility and
accessory use space exceeds twelve per centum of the aggregate floor
area of any building receiving benefits pursuant to this section, the
benefits provided pursuant to this section shall be equal to the amount
provided by subdivisions two, two-a and three of this section, reduced
by a percentage equal to the difference between the per centum of the
aggregate floor area that is commercial, community facility and
accessory use space and twelve per centum, provided, however, that if
the aggregate floor area of such building contains more than twenty-five
per centum of commercial, community facility and accessory use space no
benefits shall be available pursuant to this section. In calculating
aggregate floor area for purposes of subdivision two-a of this section,
"aggregate floor area" shall mean the intended aggregate floor area
after completion of conversion, as set forth in the building plans filed
with the department of buildings. If, after completion of conversion,
the actual aggregate floor area of commercial, community facility and

accessory use space is greater than the intended aggregate floor area of
such space and the actual aggregate floor area of such space exceeds
twelve per centum of the actual aggregate floor area, then the benefits
granted pursuant to subdivision two-a of this section shall be revoked
or partially revoked, as required, to reflect the actual aggregate floor
area of such space. If a building contains a separately assessed
non-residential parcel, the aggregate floor area of such parcel shall
not be considered in calculating the aggregate floor area of commercial,
community facility and accessory use space relevant to determining
eligibility for, and amount of, benefits pursuant to this section. For
the purposes of this section, accessory use space shall not include home
occupation space or accessory parking space located not more than
twenty-three feet above the curb level.
5. Benefits under this section may not be combined with benefits under
any other section of this chapter for the same tax lot.
6. 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 each dwelling unit
in an eligible multiple dwelling 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 the eligible multiple dwelling is
receiving benefits pursuant to this section, provided, however, that for
purposes of this subdivision, an eligible multiple dwelling receiving
benefits pursuant to this section whose benefits are suspended,
terminated or revoked by the department of housing preservation and
development 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 section.
7. (a) In a non-residential building of less than one hundred thousand
square feet of aggregate floor area, completion of conversion to an
eligible multiple dwelling of at least seventy-five per centum of the
aggregate floor area of such non-residential building must take place
within three years of commencement of conversion.
(b) Only the aggregate floor area for which conversion is completed
within such three-year period shall be considered in calculating the
exemption and abatement provided pursuant to this section.
(c) In a non-residential building of less than one hundred thousand
square feet of aggregate floor area containing a separately assessed
non-residential parcel, the aggregate floor area of such separately
assessed non-residential parcel shall not be considered in determining
whether seventy-five per centum of the aggregate floor area of such
non-residential building has been converted to an eligible multiple
dwelling.
8. (a) In a non-residential building of one hundred thousand square
feet or more of aggregate floor area, completion of conversion to an
eligible multiple dwelling of at least seventy-five per centum of the
aggregate floor area of such non-residential building must take place
within five years of commencement of conversion, provided, however, that
completion of conversion to an eligible multiple dwelling of at least

fifty per centum of the aggregate floor area of such non-residential
building must take place within three years of commencement of
conversion, and provided further that proof of completion of partial
conversion within three years shall be submitted with an application for
a certificate of eligibility for full exemption and abatement benefits
pursuant to this section.
(b) In a non-residential building of one hundred thousand square feet
or more of aggregate floor area in which completion of conversion to an
eligible multiple dwelling of at least fifty per centum of the aggregate
floor area of such non-residential building has taken place within three
years of commencement of conversion, and which is the subject of a
certificate of eligibility for partial exemption and partial abatement
issued pursuant to this section, partial exemption and partial abatement
of real property taxes shall be available, as follows: (i) partial
exemption benefits shall equal the amount of the assessed value
attributable exclusively to the physical improvement resulting from the
conversion of at least fifty per centum of the aggregate floor area of
the non-residential building that has received a temporary certificate
of occupancy and (ii) partial abatement benefits shall be equal to the
amount of the real property tax that would have been due during the
first year of such partial abatement but for such partial abatement upon
the amount of square feet of aggregate floor area of the non-residential
building that has received a temporary certificate of occupancy for
conversion of at least fifty per centum of the aggregate floor area of
the non-residential building, provided, however, that if the tax lot,
during the first year of such partial abatement was fully or partially
exempt from real property taxes, other than pursuant to the exemption
authorized by this section, then the partial abatement shall be equal to
the amount of real property tax that would have been due upon such
amount of square feet of aggregate floor area of the non-residential
building but for such full or partial exemption. Nothing in this
paragraph shall be deemed to require an applicant to apply for partial
exemption or abatement benefits pursuant to this section, provided,
however, that if an applicant applies for a certificate of eligibility
for such benefits, he or she shall submit proof of completion of partial
conversion with the application for such certificate.
(c) In a non-residential building of one hundred thousand square feet
or more of aggregate floor area only the aggregate floor area for which
conversion is completed within the five-year period specified in
paragraph (a) of this subdivision or, in the case of partial exemption
from or partial abatement of real property taxes, the three-year period
specified in paragraph (b) of this subdivision, shall be considered in
calculating the exemption and abatement provided pursuant to this
section, provided, however, that neither partial exemption from nor
partial abatement of real property taxes shall be available for
commercial, community facility or accessory use space.
(d) In a non-residential building of one hundred thousand square feet
or more of aggregate floor area containing a separately assessed
non-residential parcel, the aggregate floor area of such separately
assessed non-residential parcel shall not be considered in determining
whether seventy-five per centum or, in the case of partial exemption
from or partial abatement of real property taxes, fifty per centum of
the aggregate floor area of such non-residential building has been
converted to an eligible multiple dwelling.
(e) Any partial exemption from or partial abatement of real property
taxes granted pursuant to this section for a non-residential building of
one hundred thousand square feet or more of aggregate floor area shall
be revoked if completion of conversion to an eligible multiple dwelling

of at least seventy-five per centum of the aggregate floor area of such
non-residential building has not taken place within five years of
commencement of conversion.
(f) The time periods specified in subdivisions two and three of this
section shall begin upon receipt of any partial exemption from or
partial abatement of real property taxes for a non-residential building
of one hundred thousand square feet or more of aggregate floor area.
9. (a) An application for a certificate of eligibility for full
exemption and abatement benefits pursuant to this section shall be filed
with the department of housing preservation and development no later
than close of business day on the thirty-first day of March immediately
following the first taxable status date following completion of
conversion. If a certificate of eligibility for partial exemption and
abatement benefits pursuant to this section is sought by an applicant,
an application for a certificate of eligibility for such benefits shall
be filed with the department of housing preservation and development no
later than close of business day on the thirty-first day of March
immediately following the first taxable status date following completion
of partial conversion. The department of housing preservation and
development shall issue a certificate of eligibility for benefits upon
determining that the applicant satisfies the requirements of this
section.
(b) In addition to any other information required by the department of
housing preservation and development, an application for a certificate
of eligibility for benefits under this section shall state that the
applicant agrees to comply with and be subject to rules promulgated by
the department of finance and the department of housing preservation and
development to secure compliance with this section and all applicable
local, state and federal laws. Such application shall also certify that
all taxes, water charges and sewer rents currently due and owing on the
property which is the subject of the application have been paid or are
currently being paid in timely installments pursuant to written
agreement with the department of finance or other appropriate agency.
(c) The burden of proof shall be on the applicant to show by clear and
convincing evidence that the requirements for granting benefits under
this section have been satisfied. The department of housing preservation
and development shall have the authority to require that statements in
connection with the application shall be made under oath.
(d) The department of finance and the department of housing
preservation and development may promulgate rules to carry out the
purposes of this section, including, but not limited to, rules providing
for such administrative charges or fees as are necessary to defray
expenses in administering the benefit program provided pursuant to this
section and rules defining, or expanding upon the definition of, terms
used in this section.
10. Any tax lot which is partly located inside the eligible area shall
be deemed to be entirely located inside such area.
11. No benefits pursuant to this section shall be granted for any
conversion to an eligible multiple dwelling unless the applicant shall
file, together with the application for a certificate of eligibility, 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
twelve of this section shall mean ownership and control of an interest
of ten per centum or more in property or any person owning a property.
12. (a) If any person described in the statement required by paragraph
(b) of subdivision eleven 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 section and shall
pay, with interest, any taxes for which benefits were claimed pursuant
to this section.
(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 eleven of this section.
13. In addition to any other qualifications for benefits pursuant to
this section, an applicant must be:
(a) obligated to pay real property tax on the property for which
benefits are 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.
14. A co-applicant with a public entity shall be eligible to receive
benefits pursuant to this section, 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 section. Such recipient shall receive benefits pursuant
to this section 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 section, receive
the benefits to which such recipient is entitled in the corresponding
tax year pursuant to this section.
15. For the duration of the benefit period, the recipient shall file
annually with the department of housing preservation and development, on

or before the taxable status date, a certificate of continuing use. Such
certificate shall be on a form prescribed by the department of housing
preservation and development. The department of housing preservation and
development shall have the authority to require such information as it
deems necessary to determine whether the recipient has established
continuing eligibility for benefits. The department of housing
preservation and development shall have the authority to terminate
benefits pursuant to this section upon failure of the recipient to file
such certificate by the taxable status date. The burden of proof shall
be on the recipient to establish continuing eligibility for benefits and
the department of housing preservation and development may require that
statements made in such certificate shall be made under oath.
16. Any recipient whose property is the subject of a certificate of
eligibility for benefits pursuant to this section who converts aggregate
floor area within such property from the use authorized pursuant to this
section where such conversion results in less that seventy-five per
centum of the aggregate floor area of such property being used or held
out for use for dwelling purposes, or where such conversion results in
more than twenty-five per centum of such aggregate floor area being used
or held out for use for commercial, community facility or accessory use
space, or where such conversion in a building of one hundred thousand
square feet or more of aggregate floor area that has a certificate of
eligibility for a partial exemption or partial abatement pursuant to
subdivision eight of this section results in less than fifty per centum
of such aggregate floor area being used or held out for use for dwelling
purposes, shall cease to be eligible for benefits as of the last date
upon which the recipient met the requirements of this section and proves
by clear and convincing evidence that at least seventy-five per centum
of the aggregate floor area of the property was used or held out for use
for dwelling purposes, or twenty-five per centum or less of the
aggregate floor area of such property was used or held out for use for
commercial, community facility or accessory use space, or at least fifty
per centum of the aggregate floor area of such property in a building of
one hundred thousand square feet or more which is receiving partial
exemption or partial abatement benefits was used or held out for use for
dwelling purposes, respectively. Such recipient shall pay, with
interest, any taxes for which benefits were claimed after such date,
including the pro-rata share of tax for which any benefits were claimed
during the tax year in which the property was converted to a use not
eligible for benefits under this section.
17. All taxes plus interest required to be paid retroactively pursuant
to this section shall constitute a tax lien as of the date that it is
determined that such taxes and interest are owed. All interest shall be
calculated from the date the taxes would have been due but for the
benefits claimed pursuant to this section at three per centum above the
applicable rate of interest imposed by such city generally for
non-payment of real property tax with respect to such property for the
period in question.
18. (a) The department of housing preservation and development may
deny, reduce, suspend, terminate or revoke any exemption from or
abatement of tax payments pursuant to this section whenever: (i) a
recipient fails to comply with the requirements of this section or the
rules promulgated hereunder; or (ii) an application, certificate, report
or other document submitted by an applicant or recipient pursuant to
this section or the rules promulgated hereunder contains a false or
misleading statement as to a material fact or omits to state any
material fact necessary in order to make the statements therein not
false or misleading. The department of housing preservation and

development may declare any applicant or recipient referred to in
subparagraph (i) or (ii) of this paragraph to be ineligible for future
benefits pursuant to this section for the same or other property.
(b) Notwithstanding any other law to the contrary, a recipient shall
be personally liable for any taxes owed pursuant to this section
whenever such recipient fails to comply with this section or the rules
promulgated hereunder, or makes such false or misleading statement or
omission, and the department of housing preservation and development
determines that such act was due to the recipient's willful neglect, or
that under the circumstances such act constituted a fraud on the
department of housing preservation and development, or a buyer or
prospective buyer of the property. The remedy provided herein for an
action in personam shall be in addition to any other remedy or procedure
for the enforcement of collection of delinquent taxes provided by any
general, special or local law. Any lease provision which obligates a
tenant to pay taxes which become due because of willful neglect or fraud
by the recipient, or otherwise relieves or indemnifies the recipient
from any personal liability arising hereunder, shall be void as against
public policy except where the imposition of such taxes or liability is
occasioned by actions of the tenant in violation of the lease.
(c) In order to carry out the purposes of this section the department
of housing preservation and development may administer oaths to and take
the testimony of any person, including but not limited to the owner of
property which is the subject of an application for a certificate of
eligibility or a certificate of eligibility pursuant to this section and
issue subpoenas requiring the attendance of persons and the production
of such bills, books, papers or other documents as it shall deem
necessary.
(d) If, during the benefit period, any real property tax or water or
sewer charge due and payable with respect to property receiving an
exemption or abatement pursuant to this section shall remain unpaid for
at least one year following the date upon which such tax or charge
became due and payable, all exemptions and abatements granted pursuant
to this section with respect to such property shall be revoked, unless
within thirty days from the mailing of a notice of revocation by the
department of finance satisfactory proof is presented to the department
of finance that any and all delinquent taxes and charges owing with
respect to such property as of the date of such notice have been paid in
full or are currently being paid in timely installments pursuant to a
written agreement with the department of finance or other appropriate
agency. Any revocation pursuant to this paragraph shall be effective
with respect to real property tax which became due and payable following
the date of such revocation.

Structure New York Laws