New York Laws
Title 2 - Private Property
488-A - Rehabilitation of Certain Class B Multiple Dwellings and Class a Multiple Dwellings Used for Single Room Occupancy.

(i) any class B multiple dwelling;
(ii) any class A multiple dwelling used for single room occupancy
pursuant to section two hundred forty-eight of the multiple dwelling law
which contains no more than twenty-five percent class A dwelling units
which contain lawful sanitary and kitchen facilities within the dwelling
unit, provided that in the case of a multiple dwelling containing ten
dwelling units or less, up to forty percent of the dwelling units may be
class A units.
Notwithstanding the foregoing, eligible real property shall not
include college and school dormitories, club houses, or residences whose
occupancy is restricted to an institutional use such as housing intended
for use primarily or exclusively by the employees of a single company or
institution. A building is an eligible real property only if it
qualifies as such after completion of the eligible improvements, but
need not have been an eligible real property prior to the eligible
improvements.
(iii) not-for-profit institutions with sleeping accommodations.
b. "Eligible improvements" shall be limited to the following
catogories of work, provided further that such work shall be in
conformity with all applicable laws:
(i) replacement of a boiler or burner or installation of an entire new
heating system;
(ii) replacement or upgrading of electrical system;
(iii) replacement or upgrading of elevators;
(iv) installation or replacement or upgrading of the plumbing system,
including water main and risers;
(v) replacement or installation of walls, ceilings, floors or trim
where necessary;
(vi) replacement or upgrading of doors, installation of security
devices and systems;
(vii) installation, replacement or upgrading of smoke detectors, fire
alarms, fire escapes, or sprinkler systems;
(viii) replacement or repair of roof, leaders and gutters;
(ix) replacement or installation of bathroom facilities;
(x) installation of wall and pipe insulation;
(xi) replacement or upgrading of street connections for water or sewer
services;
(xii) replacement or installation of windows, or installation of
window gates or guards;
(xiii) installation or replacement of boiler smoke stack;
(xiv) pointing, waterproofing and cleaning of entire building exterior
surface;
(xv) improvements designed to conserve the use of fuel, electricity or
other energy sources;
(xvi) improvements unique to congregate living facilities, as defined
by rules and regulations promulgated by the local housing agency,
pursuant to subdivision seven of this section; and
(xvii) work necessary to effect compliance with all applicable laws
including but not limited to the multiple dwelling law, the New York
city housing maintenance code and the New York city building code.
c. "Local housing agency". Local housing agency shall have the same
meaning as the term "agency" under section five hundred two of the
general municipal law, except that in cities of over one million in

population the term shall mean the department of housing preservation
and development.
d. "Permanent resident". Permanent resident shall mean a person who
has resided in eligible real property for six months or more, has a
lease with a term of six or more months, or has requested a lease
pursuant to the provisions of the rent stabilization code for housing
accommodations located in hotels.
2. Local legislative action. Any city to which the multiple dwelling
law is applicable, acting through its local legislative body or other
governing agency, is hereby authorized and empowered to adopt and amend
local laws or ordinances up to and including December thirty-first, two
thousand nineteen, to provide that any increase in assessed valuation of
eligible real property shall be exempt from taxation for local purposes
and to provide for the abatement of taxes on eligible real property,
including the land, in accordance with this section.
3. Tax exemption. Any increase in assessed valuation of eligible real
property resulting from eligible improvements shall be exempt from
taxation for local purposes for a period of thirty-two years, provided
that:
(i) the eligible improvements are commenced after July first, nineteen
hundred eighty, but prior to December thirty-first, two thousand
nineteen, and are completed within thirty-six months of commencement;
(ii) the eligible improvements are approved by the local housing
agency with respect to their cost and their qualifications for the
benefits of this section;
(iii) the exemption may commence no sooner than the July first
following the filing with the local agency responsible for real property
tax assessment of a certification of eligibility issued by the local
housing agency for such exemption; provided, however, that if the
rehabilitation is carried out with substantial government assistance as
part of a program for affordable housing, the exemption may commence no
sooner than the July first following the commencement of construction of
eligible improvements;
(iv) immediately prior to, and during, the construction of the
eligible improvements, fifty or more percent of the dwelling units in
such eligible real property are occupied by permanent residents;
provided that such occupancy requirement shall not apply to a vacant,
governmentally owned, multiple dwelling, nor to a privately owned
multiple dwelling which had been vacant for not less than two years
prior to the commencement of construction of eligible improvements, nor
to a vacant multiple dwelling where the eligible improvements are
carried out with the substantial assistance of grants, loans or
subsidies from any federal, state or local agency or instrumentality or
any not-for-profit philantropic organization one of whose primary
purposes is providing low or moderate income housing;
(v) there shall be no outstanding real estate taxes, water and sewer
charges, payments in lieu of taxes or other municipal charges due and
owing as of the tax quarter prior to commencement of tax exemption to
this section;
(vi) except in the case of eligible real property which is receiving
or has received assistance pursuant to a governmental rent subsidy
program, or which is owned by a not-for-profit corporation or by a
wholly owned subsidiary of a not-for-profit corporation and which is
receiving or has received assistance pursuant to a governmental loan
subsidy program, as defined by the rules and regulations promulgated by
the local housing agency, pursuant to subdivision seven of this section,
for the construction of eligible improvements, the initial rent, after
completion of eligible improvements, for ninety percent of the total

number of dwelling units occupied by permanent residents in a class A or
class B multiple dwelling other than apartments shall not exceed the
greater of either the amount of any governmental rental assistance
received by an occupant or seventy-five percent of the rent which is
permitted to be charged for zero-bedroom units on the moderate
rehabilitation fair market rent schedule as determined by the United
States department of housing and urban development for the housing
assistance payments program under section eight of the national housing
act;
(vii) no person who lives in the eligible real property shall be
required by the owner to vacate the eligible real property in order to
perform the eligible improvements or any related work.
4. Tax abatement. Eligible real property which qualifies for exemption
from taxation for local purposes for eligible improvements shall also be
eligible for an abatement of real property taxes in an amount no greater
than twelve and one-half percent of the reasonable cost of eligible
improvements certified by the local housing agency, which abatement may
commence on the first day of the first tax quarter following the filing
with the local agency responsible for real property tax assessment of a
certification of eligibility issued by the local housing agency for such
abatement; provided, however that if the rehabilitation is carried out
with substantial government assistance as part of a program for
affordable housing the abatement may commence no sooner than the first
day of the first tax quarter following the commencement of construction
of eligible improvements, provided that:
(i) the annual abatement shall not exceed the amount of taxes
otherwise payable in the corresponding tax year;
(ii) the period during which such abatement is effective shall not
exceed twenty consecutive years from the date such abatement first
becomes effective; and
(iii) the total abatement shall not exceed the lesser of one hundred
fifty percent of the certified reasonable costs of eligible improvements
or the actual costs as determined by the local housing agency pursuant
to its rules and regulations.
5. Continuing requirements. During the period of tax exemption or
abatement pursuant to this section, exemption and abatement shall be
conditional upon continuing compliance with the following requirements:
(i) compliance with all applicable provisions of law, including but
not limited to the multiple dwelling law, the local building code and
the local housing maintenance code;
(ii) all dwelling units, except owner occupied units, shall be subject
to the emergency housing rent control law or the local emergency housing
rent control act, or the emergency tenant protection act of nineteen
seventy-four, or any local laws enacted pursuant thereto, or the rent
stabilization law of nineteen hundred sixty-nine; provided, however that
the department of housing preservation and development may exempt from
this requirement dwelling units that are not occupied by permanent
residents in those buildings owned by a not-for-profit corporation or by
a wholly owned subsidiary of a not-for-profit corporation and which are
improved with the aid of a rehabilitation loan from any governmental
agency or instrumentality or operated pursuant to a contract with a
governmental entity;
(iii) it shall not receive tax exemption or tax abatement for
rehabilitation or new construction under any other provision of law; and
(iv) the eligible improvements shall not be used as the basis for any
application for rent increases and the owner shall file a statement to
such effect with the local housing agency and with any applicable rent
agency, provided, however, that rents of units improved with the aid of

a rehabilitation loan from any governmental agency or instrumentality
may within the limitations established by this section be increased
pursuant to the rules and regulations of the local housing agency; and
(v) a minimum of seventy-five percent of the dwelling units shall be
rental units occupied by permanent residents, provided, however, that
the local housing agency may exempt from this requirement those
buildings improved with the aid of a rehabilitation loan from any
government agency or instrumentality or operated pursuant to a contract
with a governmental entity.
6. Revocation. The benefits of this section may be revoked or reduced
upon a finding by the local housing agency or local finance agency that:
(i) the application for benefits hereunder or the annual certification
required hereunder contains a false statement or false information as to
a material matter or omits a material matter;
(ii) real estate taxes, water and sewer charges, payments in lieu of
taxes or other municipal charges are due and owing for more than one
year; or
(iii) the eligible real property fails to comply with one or more of
the provisions or requirements of this section.
7. Rules and regulations. The local agencies of government charged
with the administration of this section may promulgate rules and
regulations to carry out the provisions of this section.
8. Annual certification. During the period of tax exemption or
abatement pursuant to this section, the owner shall submit an annual
certification to the local housing agency in a form to be prescribed by
such agency. Failure to submit such certification may result in
revocation of benefits. Such certification shall include the following:
(i) the total number of dwelling units within the eligible real
property and the number of dwelling units occupied by permanent
residents;
(ii) the number of dwelling units subject to the provisions of the
emergency housing rent control act, the emergency tenant protection act
of nineteen seventy-four or any local laws enacted pursuant thereto, the
emergency housing rent control law or the rent stabilization law of
nineteen hundred sixty-nine; and
(iii) all such other information required by the local housing agency.

Structure New York Laws