New York Laws
Title 2 - Private Property
489 - Exemption From Taxation of Alterations and Improvements to Multiple Dwellings to Eliminate Fire and Health Hazards; Abatement.

(1) conversion of buildings or structures on such property to class A
multiple dwellings not used in whole or in part for single room
occupancy, including conversion of residential units qualified for the
protection of article seven-C of the multiple dwelling law in buildings
classified as interim multiple dwellings pursuant to such article to
units which are in compliance with the standards of safety and fire
protection set forth in article seven-B of the multiple dwelling law or
to units which have a certificate of occupancy as class A multiple
dwellings; or
(2) alterations or improvements, including as improvements asbestos
abatement to the extent such asbestos abatement is required by federal,
state or local law, on such property to eliminate unhealthy or dangerous
conditions or to replace inadequate and obsolete sanitary facilities,
any of which represent fire or health hazards, in any existing class A
multiple dwellings or buildings consisting of one or two dwelling units
over space used for commercial occupancy, except insofar as the gross
cubic content of the building is increased thereby; or
(3) alterations or improvements on such property which are designed to
conserve the use of fuel, electricity or other such energy sources in
any dwellings or other buildings or structures described in clause one
or two of this paragraph; or
(4) alterations or improvements to the exterior walls of dwellings or
other buildings or structures on such property in order to comply with
any provision of law regulating dwellings, buildings, or structures that
are in an area designated as an historic or landmark area or that are
designated as historic or landmark buildings or structures; or
(5) alterations or improvements constituting a moderate rehabilitation
of a substantially occupied class A multiple dwelling within a city
having a population of one million or more as certified by the local
housing agency pursuant to local law or rules and regulations; or
(6) alterations or improvements constituting a substantial
rehabilitation of a class A multiple dwelling or a conversion of a
building or structure into a class A multiple dwelling as part of a
program to provide housing for low and moderate income households as
defined by the local housing agency pursuant to rules and regulations,
provided that such alterations or improvements or conversions shall be
aided by a grant, loan or subsidy from any federal, state or local
agency or instrumentality, including, in the discretion of the local
housing agency, a subsidy in the form of a below market sale.
Such conversion, alterations or improvements shall be completed within
thirty months after the date on which same shall be started except that
such thirty month limitation shall not apply to conversions of
residential units which are registered with the loft board in accordance
with article seven-C of the multiple dwelling law pursuant to
subparagraph one of this paragraph. Notwithstanding the foregoing, a
sixty month period for completion shall be available for alterations or
improvements undertaken by a housing development fund company organized
pursuant to article eleven of the private housing finance law, which are
carried out with the substantial assistance of grants, loans or

subsidies from any federal, state or local governmental agency or
instrumentality or which are carried out in a property transferred from
such city if alterations and improvements are completed within seven
years after the date of transfer. In addition, the local housing agency
is hereby empowered to grant an extension of the period of completion
for any project carried out with the substantial assistance of grants,
loans or subsidies from any federal, state or local governmental agency
or instrumentality, if such alterations or improvements are completed
within sixty months from commencement of construction. Provided,
further, that such conversion, alterations or improvements shall in any
event be completed prior to June thirtieth, two thousand twenty-two.
Exemption for conversions, alterations or improvements pursuant to
subparagraph one, two, three or four of this paragraph shall continue
for a period not to exceed fourteen years and begin no sooner than the
first quarterly tax bill immediately following the completion of such
conversion, alterations or improvements. Exemption for alterations or
improvements pursuant to this subparagraph or subparagraph five of this
paragraph shall continue for a period not to exceed thirty-four years
and shall begin no sooner than the first quarterly tax bill immediately
following the completion of such alterations or improvements. Such
exemption shall be equal to the increase in the valuation which is
subject to exemption in full or proportionally under this subdivision
for ten or thirty years, whichever is applicable. After such period of
time, the amount of such exempted assessed valuation of such
improvements shall be reduced by twenty percent in each succeeding year
until the assessed value of the improvements are fully taxable.
Provided, however, exemption for any conversion, alterations or
improvements which are aided by a loan or grant under article eight,
eight-A, eleven, twelve, fifteen or twenty-two of the private housing
finance law, section six hundred ninety-six-a or section ninety-nine-h
of the general municipal law, or section three hundred twelve of the
housing act of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the
Cranston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et.
seq.), or started after July first, nineteen hundred eighty-three by a
housing development fund company organized pursuant to article eleven of
the private housing finance law which are carried out with the
substantial assistance of grants, loans or subsidies from any federal,
state or local governmental agency or instrumentality or which are
carried out in a property transferred from any city and where
alterations and improvements are completed within seven years after the
date of transfer may commence at the beginning of any tax quarter
subsequent to the start of such conversion, alterations or improvements
and prior to the completion of such conversion, alterations or
improvements.
(b) Any city to which the multiple dwelling law is not applicable,
acting through its local legislative body or other governing agency, is
hereby authorized and empowered, to and including June first, nineteen
hundred seventy-two, to adopt and amend local laws or ordinances
providing that any increase in assessed valuation resulting from
alterations and improvements to eliminate presently existing unhealthy
or dangerous conditions in any multiple dwellings occupied, as a rule,
for permanent residence purposes or to replace inadequate and obsolete
sanitary facilities any of which represent fire or health hazards, in
such dwellings except insofar as the gross cubic content of the building
is increased thereby, shall be exempt from taxation for local purposes
for a period not to exceed twelve years after the taxable status date
immediately following the completion thereof, provided that the
alterations or improvements for which the benefits of any such law or

ordinance are claimed were started after March first, nineteen hundred
sixty-two, and completed within two years from the date on which they
were started and in any event prior to December thirty-first, nineteen
hundred seventy-four.
1-a. Notwithstanding the provisions of subdivision one of this
section, alterations, improvements or conversions of any building or
structure that are eligible for benefits pursuant to paragraph (a) of
subdivision one of this section except insofar as the gross cubic
content of such building or structure is increased thereby shall be
eligible for such benefits insofar as the gross cubic content of such
building or structure is increased thereby provided that:
(a) for all tax lots now existing or hereafter created, at least fifty
percent of the floor area of the completed building or structure
consists of the pre-existing building or structure that was converted,
altered or improved in accordance with paragraph (a) of subdivision one
of this section, and
(b) for tax lots in the city of New York now existing or hereafter
created within the following area in the borough of Manhattan, such
conversions, alterations or improvements are 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 to the
intersection of 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. For purposes of this subdivision,
"floor area" shall have the same meaning as in paragraph b of
subdivision one of section four hundred twenty-one-a of this title.
Nothing in this subdivision shall be construed to provide benefits
pursuant to subdivision two of this section for the costs attributable
to the increased cubic content in any such building or structure.
2. (a) With respect to conversions, alterations or improvements
eligible to receive the benefits of subdivision one of this section, any
such local law or ordinance may also provide that the duration and
amount of abatement of taxes on such property, including the land, may
be separately established for each of the categories of eligibility
described in paragraph a of subdivision one of this section, provided
that:
(1) except as provided in subparagraphs two and three of this
paragraph, the annual abatement of taxes on such property, including the
land, shall not be an amount greater than eight and one-third per centum
of the total cost of such conversion, alterations or improvements nor
shall the abatement exceed the total cost of such conversions,
alterations or improvements or be effective for more than twenty years
and the annual abatement of taxes in any consecutive twelve-month period
shall in no event exceed the amount of taxes payable in such
twelve-month period;
(2) in the case of alterations or improvements (i) pursuant to
subparagraph five of paragraph (a) of subdivision one of this section
which 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 philanthropic organization one of whose primary
purposes is providing low or moderate income housing or financed with
mortgage insurance by the New York city residential mortgage insurance
corporation or the state of New York mortgage agency or pursuant to a
program established by the federal housing administration for
rehabilitation of existing multiple dwellings in a neighborhood strategy
area as defined by the United States department of housing and urban
development, or (ii) pursuant to subparagraph six of paragraph (a) of
subdivision one of this section the abatement of taxes on such property,
including the land, shall not exceed one hundred fifty per centum of the
certified reasonable cost of the alterations or improvements, as
determined under regulations of the local housing agency administering
the local law, and the annual abatement of taxes shall not exceed twelve
and one-half per centum of such certified reasonable cost, provided that
such abatement shall not be effective for more than twenty years and the
annual abatement of taxes in any consecutive twelve-month period shall
in no event exceed the amount of taxes payable in such twelve-month
period; or
(3) in the case of alterations or improvements 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
philanthropic organization one of whose primary purposes is providing
low or moderate income housing, or financed with mortgage insurance by
the New York city residential mortgage insurance corporation or the
state of New York mortgage agency or pursuant to program established by
the federal housing administration for rehabilitation of existing
multiple dwellings in a neighborhood strategy area as defined by the
United States department of housing and urban development where such
alterations or improvements are done on property located in census
tracts in which seventy-five percent or more of the population live in
households which earn fifty percent or less of the median household
income of the city in which such census tracts are located, the
abatement of taxes on such property, including the land, shall not
exceed one hundred fifty per centum of the certified reasonable cost of
the alterations or improvements, as determined under regulations of the
local housing agency administering the local law, and the annual
abatement of taxes shall not exceed twelve and one-half per centum of
such certified reasonable cost, provided that such abatement shall not
be effective for more than twenty years and the annual abatement of
taxes in any consecutive twelve-month period shall in no event exceed
the amount of taxes payable in such twelve month period.
(b) Such abatement:
(1) shall begin no sooner than the first quarterly tax bill
immediately following the completion of such conversion, alterations or
improvements, or
(2) in the case of any such conversion, alterations or improvements
(i) completed after December thirty-first, nineteen hundred seventy-five
and aided by a loan under article eight of the private housing finance
law, or (ii) started after July first, nineteen hundred seventy-seven
and aided by a loan under article fifteen of the private housing finance
law, or (iii) started after July first, nineteen hundred eighty and
aided by a loan under article eight-A of the private housing finance law
or (iv) started after July first, nineteen hundred eighty and aided by a
loan under section three hundred twelve of the housing act of nineteen

hundred sixty-four (42 U.S.C.A. 1452b), or (v) started after July first,
nineteen hundred ninety-two and aided by a loan or grant under article
eleven, twelve, or twenty-two of the private housing finance law,
section six hundred ninety-six-a or section ninety-nine-h of the general
municipal law, or the Cranston-Gonzalez national affordable housing act
(42 U.S.C.A. 12701 et. seq.), or (vi) started after July first, nineteen
hundred eighty-eight by or on behalf of a company not qualifying under
any of the above provisions which is a not-for-profit corporation
qualified pursuant to section 501(c)(3) of the Internal Revenue Code and
which has entered into a regulatory agreement with the local housing
agency requiring operation of the property as housing for low and
moderate income persons and families; may be commenced at the beginning
of any tax quarter subsequent to the start of such conversion,
alterations or improvements and prior to the completion of such
conversion, alterations or improvements.
3. Any such local law or ordinance may also provide that where the
improvements and alterations include or benefit that part of a building
which is not occupied for dwelling purposes, the increase in assessed
valuation and the cost of the alteration shall be apportioned so that
the benefits of the local law or ordinance shall not be provided for
improvements or alterations made for other than dwelling purposes.
4. Any such local law or ordinance may also provide that its benefits
shall not become available to any multiple dwelling, building or
structure as provided in paragraph (a) of subdivision one of this
section unless and until such multiple dwelling, building or structure
as provided in paragraph (a) of subdivision one of this section complies
with the applicable provisions of law. Any such law or ordinance may
make provision as to the date as of which particular improvements and
alterations shall be deemed to have been completed or commenced
therefor, as the case may be, for the purpose of qualifying for the
benefits thereof. Any such local law or ordinance may make provision
authorizing the adoption of rules and regulations by the local agencies
of government for the effectuation of the purposes of this section. Any
such local law or ordinance shall provide that the benefits of this
section shall apply to any multiple dwelling, building or structure as
provided in paragraph (a) of subdivision one of this section, which (i)
is operated exclusively for the benefit of persons or families who are
entitled to occupancy by reason of ownership of stock or membership in
the corporate owner, or for the benefit of such persons or families and
other persons or families entitled to occupancy under applicable
provisions of law without ownership of stock or membership in the
corporate owner, or (ii) is owned as a condominium and is occupied as
the residence or home of three or more families living independently of
each other; provided, however, that any such law or ordinance shall make
provision, in addition to all other conditions of eligibility for the
benefits of this section, except for multiple dwellings in which units
have been newly created by substantial rehabilitation of vacant
buildings or conversions of non-residential buildings, that the
availability of benefits under this section for such multiple dwellings,
buildings or structures shall be conditioned on the following: (1) any
items of work designated as a major capital improvement in the rules
adopted by the local housing agency or asbestos abatement to the extent
such asbestos abatement is required by federal, state or local law, and
(2) (i) the assessed valuation of such multiple dwelling, building, or
structure, including land, shall not exceed an average of forty thousand
dollars per dwelling unit at the time of the commencement of the
alterations or improvements, and (ii) the average per room sale price of
the dwelling units or the stock allocated to such dwelling units shall

have been no greater than thirty-five percent of the maximum mortgage
amount for a single family home eligible for purchase by the Federal
National Mortgage Association during the three years immediately
preceding the commencement of the alterations or improvements; provided
that if less than ten percent of the dwelling units or an amount of
stock less than the amount allocable to ten percent of such dwelling
units was not transferred during such preceding three year period,
eligibility for benefits shall be conditioned upon the multiple
dwelling, building, or structure having an assessed valuation per
dwelling unit of no more than forty thousand dollars at the time of the
commencement of the alteration or improvements. Notwithstanding the
foregoing, such local law shall also provide benefits under this section
for work completed in any such multiple dwelling, building or structure
within the first three years of its conversion to cooperative or
condominium ownership, as evidenced by the date on which the first
closing in a condominium to a bona fide purchaser occurs or in the case
of a cooperative, the date on which the shares allocable to a unit are
conveyed to a bona fide purchaser. Any such local law shall also limit
the maximum amount of tax abatement which may be received in any tax
period under this section by any such multiple dwelling, building or
structure for any alterations and improvements commenced three years or
more after its initial conversion to cooperative or condominium
ownership to an amount not in excess of two thousand five hundred
dollars per dwelling unit of the certified reasonable cost of the
alterations or improvements as determined under regulations of the local
housing agency administering the local law. Any such local law may also
require such certifications and consents to access to records, including
other tax records, as may be deemed appropriate to enforce such
conditions of eligibility. Any such local law or ordinance shall provide
that the local agencies of government shall establish maximum dollar
limits for specified items of cost for any conversion, alterations or
improvements. No costs in excess of such maximum dollar limits shall be
considered in determining the benefits of this section.
4-a. Notwithstanding any contrary provision of subdivision four of
this section, any such local law or ordinance shall provide that the
availability of benefits under this section to any multiple dwelling,
building or structure owned and operated by a limited-profit housing
company established pursuant to article two of the private housing
finance law shall not be conditioned upon the assessed valuation of such
multiple dwelling, building or structure, including land, as calculated
as an average dollar amount per dwelling unit, at the time of the
commencement of the alterations or improvements; provided, however, that
such limited-profit housing company (a) is organized and operating as a
mutual company, (b) continues to be organized and operating as a mutual
company and to own and operate the multiple dwelling, building or
structure receiving such benefits, and (c) has entered into a binding
and irrevocable agreement with the commissioner of housing of the state
of New York, the supervising agency, the New York city housing
development corporation, or the New York state housing finance agency
prohibiting the dissolution or reconstitution of such limited-profit
housing company pursuant to section thirty-five of the private housing
finance law for not less than fifteen years from the commencement of
such benefits. For the purposes of this subdivision, the terms "mutual
company" and "supervising agency" shall have the same meanings as set
forth in section two of the private housing finance law.
4-a-1. Notwithstanding any contrary provision of subdivision four of
this section, any such local law or ordinance shall provide that the
availability of benefits under this section to any multiple dwelling,

building or structure owned and operated by a redevelopment company
established pursuant to article five of the private housing finance law
shall not be conditioned upon the assessed valuation of such multiple
dwelling, building or structure, including land, as calculated as an
average dollar amount per dwelling unit, at the time of the commencement
of the alterations or improvements: provided, however, that such
redevelopment company (a) is organized and operating as a mutual
redevelopment company, (b) continues to be organized and operating as a
mutual redevelopment company and to own and operate the multiple
dwelling, building or structure receiving such benefits, and (c) has
entered into a binding and irrevocable agreement with the commissioner
of housing and community renewal, the supervising agency, the New York
city housing development corporation, or the New York state housing
finance agency prohibiting the dissolution or reconstitution of such
redevelopment company pursuant to section one hundred twenty-three of
the private housing finance law until the earlier to occur of: (i) in
fifteen years from the commencement of such benefits, or (ii) the
expiration of any tax exemption granted to such redevelopment company
pursuant to section one hundred twenty-five of the private housing
finance law. For the purposes of this subdivision, the terms "mutual"
and "supervising agency" shall have the same meanings as set forth in
section one hundred two of the private housing finance law.
4-b. Notwithstanding any contrary provision of the private housing
finance law, any such local law shall provide that the benefits of this
section shall apply to any limited profit housing company as provided in
this section. In addition to the limitations set forth in subdivision
eleven of this section, such multiple dwelling, building or structure
shall be eligible for benefits only where at least one building wide
improvement or alteration is part of the application for benefits.
Furthermore, to the extent that such alterations or improvements are
financed with grants, loans or subsidies from any federal, state, or
local agency or instrumentality, such multiple dwelling, building or
structure shall be eligible for benefits only if the limited profit
housing company has entered into a binding and irrevocable agreement
with the commissioner of housing of the state of New York, the
supervising agency, as such term is defined in section two of the
private housing finance law, the New York city housing development
corporation, or the New York state housing finance agency prohibiting
the dissolution or reconstitution of such limited profit housing company
pursuant to section thirty-five of the private housing finance law for
not less than fifteen years from the commencement of such benefits. The
abatement of taxes on such property, including the land, shall not be an
amount greater than ninety per centum of the certified reasonable cost
of such alterations or improvements, as determined under regulations of
the local housing agency administering the local law, nor greater than
eight and one-third percent of such certified reasonable cost in any
twelve month period, nor be effective for more than twenty years. The
annual abatement of taxes in any twelve month period shall in no event
exceed fifty percent of the amount of taxes payable in such twelve month
period pursuant to the applicable exemption granted pursuant to article
two of the private housing finance law or other applicable laws or fifty
percent of payments made in lieu of taxes in such twelve month period.
4-c. (a) Any such local law may also provide that a group of multiple
dwellings which was developed as a planned community and which is owned
as two separate condominiums containing a total of ten thousand or more
dwelling units shall be eligible for tax exemption and abatement as
provided in this subdivision.
(b) Any increase in assessed valuation resulting from alterations or
improvements to one or more multiple dwellings in a planned community
described in paragraph (a) of this subdivision shall be exempt from
taxation for local purposes. Such exemption shall be equal to the
increase in the valuation which is subject to exemption under this
paragraph for thirty years. After such period of time, the amount of
such exempted assessed value shall be reduced by twenty percent in each
succeeding year until the assessed value of the alterations or
improvements is fully taxable. Such exemption may commence at the
beginning of any tax quarter subsequent to the start of such alterations
or improvements. In no event shall such alterations or improvements
directly or indirectly result in an equalization increase in the
assessed valuation of any multiple dwelling forming part of the planned
community where such alterations or improvements are performed.
(c) The abatement of taxes on a planned community described in
paragraph (a) of this subdivision, including the land, shall not exceed
the greater of (i) one hundred fifty per centum of the certified
reasonable cost of the alterations or improvements, as determined under
the regulations of the local housing agency administering the local law,
and (ii) the construction cost of the alterations or improvements
identified in such regulations. Such abatement shall not be effective
for more than twenty years and the annual abatement of taxes in any
consecutive twelve-month period shall not be greater than ten per centum
of the total abatement granted and shall not exceed the amount of taxes
payable in such consecutive twelve-month period. Such abatement shall
begin no sooner than the first quarterly tax bill immediately following
the completion of such alterations or improvements. The limitations set
forth in subdivision four of this section for multiple dwellings,
buildings and structures owned as condominiums shall be inapplicable to
benefits granted pursuant to this subdivision. Abatement benefits
granted pursuant to this subdivision shall be apportioned among all of
the condominium tax lots within the condominium in which the alterations
or improvements are made, although such alterations or improvements may
have been made to one or fewer than all of the multiple dwellings
therein.
(d) In the event that multiple alterations or improvements are
undertaken in a planned community described in paragraph (a) of this
subdivision and separate applications for benefits therefor are made,
all requirements concerning physical condition of and compliance with
law by the multiple dwellings in such planned community shall apply only
upon completion of all such alterations or improvements, provided that
all such alterations or improvements are completed within six years.
(e) Except as provided in this subdivision, all of the requirements
imposed by this section on projects described in paragraph (a) of
subdivision one of this section shall be applicable to alterations or
improvements granted benefits pursuant to this subdivision.
(f) This subdivision shall be applicable only to alterations or
improvements completed prior to December thirty-first, two thousand
five.
5. To the end that conversions, alterations, and improvements aided by
this section shall interfere as little as practicable with urgently
needed public improvements or the clearance, rehabilitation, or
rebuilding of substandard and unsanitary areas, and shall be confined to
multiple dwellings, buildings or structures as provided in paragraph (a)
of subdivision one of this section which are structurally sound, such
local law or ordinance may provide that exemption or abatement from
taxation hereunder shall be restricted to multiple dwellings, buildings
or structures as provided in paragraph (a) of subdivision one of this

section (a) which the local planning commission in any such city shall
certify will not interfere with projected public improvements or the
clearance and rebuilding of substandard and insanitary areas, and (b)
which the local building department certifies to be structurally sound
and (c) which, if in an area approved for clearance, replanning,
reconstruction or neighborhood rehabilitation pursuant to chapter eight
hundred eighty-seven of the laws of nineteen hundred forty-five, as from
time to time amended, or if in an area designated for studies, tests,
demonstrations and other activities for the prevention and elimination
of slums and urban blight pursuant to chapter six hundred eight of the
laws of nineteen hundred fifty-six as from time to time amended, or if
in an area for which a preliminary or final plan has been approved
pursuant to chapters six hundred eighty-eight of the laws of nineteen
hundred fifty-seven or nine hundred twenty-four of the laws of nineteen
hundred fifty-eight, as from time to time amended, or chapter nine
hundred seventy-one of the laws of nineteen hundred sixty, or if in an
area for which an urban renewal plan or tests, studies or demonstrations
have been approved pursuant to article fifteen of the general municipal
law, is certified by the project board for the area as a dwelling which
is to be or has been improved in conformity with such replanning,
reconstruction, neighborhood improvement, studies, tests, demonstrations
or plan.
6. Notwithstanding the provisions of the multiple dwelling law,
multiple residence law, and any local law, ordinance, rule or
regulation, any city to which this section is applicable acting through
its local legislative body may provide, in a manner that shall be
uniform as to any particular type or class of multiple dwelling,
building or structure as provided in paragraph (a) of subdivision one of
this section, that, any multiple dwelling, building or structure as
provided in paragraph (a) of subdivision one of this section to which
alterations and improvements are made pursuant to this section and which
did not require a certificate of occupancy on April second, nineteen
hundred forty-five, and, in the case of multiple dwellings, buildings or
structures as provided in paragraph (a) of subdivision one of this
section to which the multiple residence law is applicable, on July
first, nineteen hundred fifty-two, may not be occupied lawfully after
such date upon the completion of such alterations and improvements
without a certificate of occupancy.
7. Any local law or ordinance may also provide any or all of the
following:
(a) The benefits of this section shall not apply to any multiple
dwelling, building or structure as provided in paragraph (a) of
subdivision one of this section in which rents, subsequent to
alterations and improvements, shall exceed such amount, if any, as may
be fixed by the local legislative body or by the municipal agency
designated by the local legislative body of the municipality involved,
based upon a standard formula.
(b) (1) The benefits of this section shall not apply to any multiple
dwelling, building or structure as provided in paragraph (a) of
subdivision one of this section which is not subject to the provisions
of the emergency housing rent control law or to local law enacted
pursuant to the local emergency housing rent control act, where the
local legislative body or other governing agency of the municipality
involved shall prescribe that the benefits herein provided shall not
apply to such multiple dwelling, building or structure as provided in
paragraph (a) of subdivision one of this section provided that such
local legislative body or other governing agency shall not use the
authority conferred in this paragraph (b) to rescind any benefits

granted under former section five-h of the tax law prior to July first,
nineteen hundred fifty-eight; and further provided that where the
benefits provided herein or under such former section five-h of the tax
law are granted or had been granted on or after July first, nineteen
hundred fifty-eight, to any multiple dwelling, building or structure
which is decontrolled subsequent to the granting of such benefits, the
local legislative body or other governing agency may withdraw such
benefits from such dwelling.
(2) Any dwelling unit subject to rent regulation on or before the
effective date of this subparagraph as a result of receiving a tax
exemption or abatement pursuant to this section shall be subject to such
regulation until the occurrence of the first vacancy of such unit after
such benefits are no longer being received at which time such unit shall
be deregulated or if each lease and renewal thereof for such unit for
the tenant in residence at the time of the expiration of the tax benefit
period has included a notice in at least twelve point type informing
such tenant that the unit shall become subject to deregulation upon the
expiration of such tax benefit period and states the approximate date on
which such tax benefit period is scheduled to expire, such dwelling unit
shall be deregulated as of the end of the tax benefit period; unless
such unit would have been subject to regulation under the rent
stabilization law of nineteen hundred sixty-nine or the emergency tenant
protection act of nineteen seventy-four.
(c) The benefits of this section shall apply to any multiple dwelling,
building or structure as provided in paragraph (a) of subdivision one of
this section occupied, as a rule, for permanent residence purposes and
which is not used in whole or in part for single room occupancy and
which is not subject to the provisions of the emergency housing rent
control law or to local law enacted pursuant to the local emergency
housing rent control act, provided that it is located within an area
which has been designated by the local planning commission under the
provisions of section seventy-two-m of article fifteen of the general
municipal law or where a program of local neighborhood improvement or
housing maintenance is being carried out under the supervision or with
the assistance of the local government and provided that the rents or
carrying charges, subsequent to alterations and improvements, (1) shall
not exceed such amount, if any, as may be fixed by the local legislative
body or by the municipal agency designated by the local legislative body
of the municipality involved, based upon a standard formula, or (2)
where the local legislative body so provides, shall not exceed such
amount, if any, as may be fixed for such multiple dwelling, building or
structure as provided in paragraph (a) of subdivision one of this
section pursuant to any local law enacted pursuant to the local
emergency housing rent control act, and further provided that prior to
such alterations and improvements, the multiple dwelling, building or
structure as provided in paragraph (a) of subdivision one of this
section, if a multiple dwelling, was either a multiple dwelling
occupied, as a rule, as a temporary or transient residence or occupied,
as a rule, for permanent residence purposes and used in whole or in part
for single room occupancy.
(d) The benefits of this section shall apply to any building or
structure as provided in paragraph (a) of subdivision one of this
section, provided that the rents or carrying charges subsequent to
conversion (1) shall not exceed such amount, if any, as may be fixed by
the local legislative body or by the municipal agency designated by the
local legislative body of the municipality involved, based upon a
standard formula, or (2) where the local legislative body so provides,
shall not exceed such amount, if any, as may be fixed for such dwelling

pursuant to any local law enacted pursuant to the local emergency
housing rent control act.
8. Notwithstanding any other provision of this section the benefits of
this section shall not apply to any private dwelling unless it is in an
area defined by clause (c) of subdivision five of this section and is
certified by the project board for the area as a dwelling which is to be
or has been improved in conformity with such replanning, reconstruction,
neighborhood improvement, studies, tests, demonstrations or plan.
Notwithstanding the foregoing, for purposes of this section and any
local law enacted pursuant hereto a class A multiple dwelling may be
deemed to include any garden-type maisonette dwelling project consisting
of a series of dwelling units which together and in their aggregate were
arranged or designed to provide three or more apartments and are
provided as a group collectively with all essential services such as,
but not limited to, water supply, house sewers and heat, and which are
in existence and operated as a unit under single ownership on the date
upon which an application for the benefits of this section is received
by the city, even though certificates of occupancy were issued for
portions thereof as private dwellings.
8-a. Notwithstanding the provisions of subdivision eight of this
section to the contrary, unless excluded by local law, the benefits of
this section may apply to: (i) alterations or improvements to any
private dwelling; (ii) conversion of any private dwelling to a multiple
dwelling; or (iii) conversion of any multiple dwelling to a private
dwelling, provided that such alterations, improvements or conversion are
part of a project which has applied for or is receiving benefits
pursuant to this section and shall be aided by a grant loan, or subsidy
from any federal, state, or local agency or instrumentality.
9. (a) During the period of such exemptions the assessment on any such
land and dwelling after such alterations and improvements, exclusive of
the increase in valuation which is subject to exemption in full or
proportionally under subdivision one of this section, shall not exceed
the valuation of the previously existing dwelling appearing on the
assessment rolls after the taxable status date immediately preceding the
commencement of such alterations and improvements plus the value of the
land, any improvements other than those made under the provisions of
this section and the proportion of increased assessed valuation that is
not exempt from taxation under this section, which proportion shall
remain constant during the term of the exemption. Where the alteration
or improvement qualifies under subparagraph two of paragraph (a) of
subdivision two of this section or under clause (A) or (B) of
subparagraph one of paragraph (a) of subdivision eleven of this section,
the exemption shall also include an exemption from taxation for local
purposes for twelve years upon that portion of the assessment, if any,
which exceeds the transition assessment, as defined in subdivision two
of section eighteen hundred five of this chapter, in effect at the time
of the commencement of the exemption hereunder.
(b) Notwithstanding the provisions of paragraph (a) of this
subdivision, except as provided in subparagraph three of this paragraph,
for buildings in which alterations, improvements or conversions
qualifying for an exemption under this section are commenced on or after
the date on which this paragraph becomes a law:
(1) The assessed value of the building during the period of the
exemption shall be pro-rated between the exempt and taxable portions of
the building assessment so that throughout the exemption period the
exempt portion of the building assessment shall bear the same
relationship to the non-exempt portion of the building assessment as it
did on the final tax roll on which an exemption was first available to

such building for alterations or improvements made pursuant to this
section or on the last tax roll on which such ratio was changed by
reason of additional improvements, whichever results in the greatest
percentage of exempt assessed valuation; provided, however, that
increases in building value due to (i) additional improvements that do
not qualify for an exemption under this section, (ii) increases in the
value of non-residential portions of the building, or (iii) non-exempt
additions to cubic content shall not be pro-rated, but shall be fully
taxable.
(2) Reductions in the assessed value of the building during the period
of the exemption shall be pro-rated between the taxable and exempt
portions of the building assessment in the proportion which was
established pursuant to subparagraph one of this paragraph on the final
tax roll for the first fiscal year for which an exemption was granted
pursuant to this section, or on the last tax roll on which such ratio
was changed by reason of additional improvements, whether exempt or
non-exempt, or due to changes in the assessed value of fully taxable
space. In no case, however, shall the value of an exemption granted
pursuant to this section be reduced during the period for which such
exemption was granted, by reason of a reduction in the assessed value of
the building, to an amount less than the amount of exemption appearing
on the first tax roll following the grant of this exemption.
(3) During the first three years of such exemptions, the assessment on
any such land and dwelling shall be determined in accordance with
paragraph (a) of this subdivision.
10. In cities with a population of one million or more, any such local
law or ordinance may require that, prior to application for any tax
exemption or abatement pursuant to this section, relocation awards be
paid to certain displaced manufacturing and other tenants under the
terms and conditions set forth below:
(a) Relocation awards for certain tenants of non-residential
buildings. Such local law or ordinance shall limit eligibility for such
a relocation award to former tenants and former subtenants of premises
in a non-residential building which is the subject of an application for
an alteration permit for conversion to a class A multiple dwelling, who:
(1) leased and used the vacated premises to conduct a manufacturing,
warehousing, or wholesaling business for not less than two consecutive
years immediately prior to vacating;
(2) vacated such premises on or after April first, nineteen hundred
eighty-one for any reason other than eviction for non-payment of rent;
(3) vacated such premises (i) no earlier than twenty-four months prior
to the filing date of an application for such alteration permit and (ii)
no later than the completion of the conversion as evidenced by the
issuance of a permanent certificate of occupancy for a class A multiple
dwelling;
(4) either purchased or leased for a term of not less than eighteen
months other premises within such city with a floor area not less than
one-third of the floor area of the vacated premises;
(5) relocated their business to such other premises within one year of
vacating the vacated premises; and
(6) paid all commercial rent or occupancy tax for the vacated
premises. A subtenant shall be eligible to receive a relocation award
notwithstanding any lack of eligibility of its prime tenant.
(b) Amount of relocation award. The relocation award shall not exceed
the greater of (1) all the base rent that accrued and was paid by the
eligible tenant during the final twenty-four months of its occupancy of
the vacated premises or (2) four dollars for each square foot that the
eligible tenant occupied in the vacated premises during the final

twenty-four months of its occupancy of the vacated premises. As used in
this subdivision, base rent shall be calculated in the same manner as
base rent is calculated for purposes of commercial rent or occupancy tax
in the city of New York, or in any such city. However, the aggregate
award payable to a prime tenant and any subtenants of such prime tenant
shall not exceed the amount which would have been payable to the prime
tenant had the prime tenant been eligible for an award based on the
entire floor area it leased from the owner; and if such limitation
applies, the awards shall be prorated based upon the total floor area
used and occupied by each eligible tenant.
(c) Payment of award. The relocation award shall become due and
payable to an eligible tenant at the time the eligible tenant either
purchases or leases other premises in accordance with paragraph (a)
above within such city and certifies eligibility to and demands payment
of the award from the owner of the vacated building. If the relocation
award is not paid within thirty days of such certification and demand,
interest shall accrue on the relocation award from the date of
certification and demand at the rate of twenty-four percent per annum.
(d) Notice of claim. At any time after such certification and demand
and prior to the date of the filing of an application for tax exemption
or abatement for the vacated building pursuant to this section, an
eligible tenant who has not received a relocation award shall have a
right to file a notice of claim. Such notice of claim shall be filed
with the county clerk of the county in which the vacated building is
located and shall verify the claimant's name, its compliance with
eligibility requirements, the address of the vacated premises, the floor
area it occupied, the name of the prime tenant if the claimant is a
subtenant, and all the base rent that accrued and was paid by the
claimant during the final twenty-four months of its occupancy.
(e) Discharge of notice of claim. A notice of claim may be discharged
by filing an undertaking with the clerk of the county in which the
premises are located in an amount equal to the amount claimed in
accordance with the procedures set forth in subdivision four of section
nineteen of the lien law, or by payment into court of such amount in
accordance with the procedures set forth in section fifty-five of the
lien law.
(f) Affidavit and notice as a condition to tax benefits. No tax
exemption or abatement shall be granted pursuant to this section unless
the local municipal agency responsible for administering this section
receives an affidavit from the applicant which verifies that:
(1) the applicant has caused to be published a notice in a newspaper
of general circulation within the city, no later than sixty days prior
to filing of an application for tax exemption or abatement pursuant to
this section, which advises former tenants and subtenants of their
rights pursuant to any local law or ordinance enacted pursuant to this
subdivision; and
(2) no notice of claim has been filed or all claims have been released
by the claimant, secured in accordance with the provisions of paragraph
(e) of this subdivision, or discharged as an improper claim by a court
order.
(g) Action on claim. If an eligible tenant or subtenant has duly filed
a notice of claim pursuant to this subdivision and does not receive a
relocation award as provided herein, it may commence an action against
any applicant who filed a false affidavit pursuant to paragraph (f) of
this subdivision within three years of such filing or any security
posted by such applicant pursuant to paragraph (e) of this subdivision.
In any action to enforce a claim pursuant to this subdivision, if the
court finds that the claimant has wilfully exaggerated the amount of the

claim, the claimant may be held liable in damages for an amount not to
exceed the proper relocation award. An eligible tenant in whose favor a
judgment is entered shall be entitled to costs and reasonable legal fees
and disbursements provided that such judgment is in excess of the amount
which the applicant or owner offered to pay the eligible tenant.
(h) Waiver. Any lease provision exempting, releasing or discharging
the obligation to pay a relocation award pursuant to this subdivision
shall be deemed to be void as against public policy and wholly
unenforceable.
(i) Local zoning resolution. The provisions of this subdivision ten
shall not apply if the local zoning resolution expressly provides for
relocation loans and/or grants in lieu of the benefits of this
subdivision.
11. Limitations of benefits. (a) Applicability. The provisions of this
subdivision apply to all conversions, alterations and improvements under
this section. However, they shall not apply to:
(1) alterations or improvements under subparagraph two, three or four
of paragraph (a) of subdivision one of this section, where carried out:
(A) with the substantial assistance of grants, loans or subsidies from
any federal, state or local agency or instrumentality, or any
not-for-profit philanthropic organization one of whose primary purposes
is providing low or moderate income housing; or
(B) with mortgage insurance by the New York city residential mortgage
insurance corporation or the state of New York mortgage agency; or
(C) in a neighborhood preservation area, as such areas were designated
by the New York city planning commission as of June first, nineteen
hundred eighty-three, provided that such area or part of such area
wherein the property is located has been approved as provided herein by
the city council of the city of New York. No such area or part thereof
shall be approved by the city council until notice of the area or part
thereof proposed to be approved is submitted to every community board
with jurisdiction over the area or part thereof, and (i) every such
community board has made and submitted to the city council comments as
to the proposed approval, or (ii) forty-five days have elapsed since
such notice was submitted to such community boards, whichever is
earlier; and
(D) pursuant to a program established by the federal housing
administration, federal national mortgage association, federal home loan
mortgage corporation or government national mortgage association for the
rehabilitation of existing multiple dwellings for persons of low or
moderate income, or a program of mortgage insurance for the
rehabilitation of existing multiple dwellings pursuant to section two
hundred twenty-three-f of the national housing act as amended, or a
program of mortgage insurance established by the federal housing
administration for the rehabilitation of existing multiple dwellings for
persons of low or moderate income; provided that properties receiving
benefits under such programs are located in a neighborhood strategy
area, as defined, by the United States department of housing and urban
development, or a neighborhood preservation area, as such areas were
designated by the New York city planning commission, as of June first,
nineteen hundred eighty-three.
(2) alterations or improvements under subparagraphs five and six of
paragraph (a) of subdivision one of this section; or
(2-a) Conversion of buildings or structures to class A multiple
dwellings pursuant to subparagraph one of paragraph (a) of subdivision
one of this section, where such conversions are undertaken by a
not-for-profit philanthropic organization or undertaken on properties
which receive mortgage insurance from the New York city residential

mortgage insurance corporation, or state of New York mortgage agency,
provided that such property is (i) located in a neighborhood
preservation area as such areas were designated by the city planning
commission on June first, nineteen hundred eighty-three, and (ii) such
property has been vacant since January first, nineteen hundred
eighty-two, and (iii) prior to becoming vacant such property was last
utilized for governmental, educational, hospital or nursing home
purposes.
(3) conversions of residential units qualified for the protection of
article seven-C of the multiple dwelling law under subparagraph one of
paragraph (a) of subdivision one of this section.
(b) Abatement limitations. The amount of abatement under subdivision
two of this section shall not exceed the certified reasonable cost of
the conversion, alteration or improvement, as determined under
regulations of the local housing agency administering the local law,
provided that the amount of certified reasonable cost eligible for
abatement under this section shall not exceed fifteen thousand dollars
for a dwelling unit of three and one-half rooms and a comparable amount
for dwelling units of other sizes, under regulations of the local
housing agency, and further provided that the amount of certified
reasonable cost eligible for abatement under this section may exceed
fifteen thousand dollars or such comparable amount per dwelling unit,
but not more than twenty-five percent above such amount, upon
application of the property owner and a determination by the housing
agency that:
(1) in the case of a conversion under subparagraph one of paragraph
(a) of subdivision one of this section, the increased cost is necessary
to comply with applicable law; or
(2) in the case of an alteration or improvement under subparagraph two
of paragraph (a) of subdivision one of this section, the increased cost
is necessary to eliminate the unhealthy or dangerous conditions or
replace the inadequate and obsolete facilities in a satisfactory manner;
or
(3) in the case of an alteration or improvement under subparagraph
three of paragraph (a) of subdivision one of this section, the increased
cost is necessary to conserve energy in a satisfactory manner; or
(4) in the case of an alteration or improvement under subparagraph
four of paragraph (a) of subdivision one of this section, the increased
cost, to the extent such cost is not offset by any and all tax credits
received as a result of the alteration or improvement, is necessary to
comply with any provision of law regulating historic or landmark
buildings or structures.
(b-1) For the purpose of the abatement limitations contained in the
opening paragraph of paragraph (b) of this subdivision, the number of
rooms in a dwelling unit shall be calculated in the following manner:
Each dwelling unit with at least one room which either (1) contains no
cooking facilities and measures at least one hundred fifty square feet,
or (2) contains cooking facilities and measures at least two hundred
thirty square feet, shall count as two and one-half rooms. Every other
room in the dwelling unit separated by either walls or doors, including
bedrooms, shall count as an additional room, provided, however, that
kitchens, cooking facilities, bathrooms, corridors or balconies shall
not count as an additional room. To be included, a room must meet the
requirements of habitability as provided in the relevant housing
maintenance code.
(c) Exemption limitations. (1) The increase in assessed valuation of
the real property located in the borough of Manhattan south of or
adjacent to the south side of one hundred tenth street resulting from

the conversion, alteration or improvement under paragraph (a) of
subdivision one of this section, shall be exempt from taxation as
provided in this section, only to the extent provided in this
subparagraph. The amount of the increased assessed valuation that is
exempt from taxation shall depend on the amount of the total assessed
valuation per dwelling unit calculated by dividing the amount of the
total assessed valuation of the property, as determined under this
chapter, by the number of dwelling units in the building after
completion of the conversion, alteration or improvement. The amount of
increased assessed valuation that will be exempt from taxation for
buildings with total assessed valuation per dwelling unit of less than
thirty-eight thousand dollars shall be calculated pursuant to the
following formula: (A) any portion of total assessed valuation of the
property attributable to the first eighteen thousand dollars of total
assessed valuation per dwelling unit, to the extent it represents
increased assessed valuation, shall be one hundred percent exempt; (B)
any portion of total assessed valuation attributable to the next four
thousand dollars of total assessed valuation per dwelling unit, to the
extent it represents increased assessed valuation, shall be seventy-five
percent exempt; (C) any portion of total assessed valuation attributable
to the next four thousand dollars of total assessed valuation per
dwelling unit, to the extent it represents increased assessed valuation,
shall be fifty percent exempt; (D) any portion of total assessed
valuation attributable to the next four thousand dollars of total
assessed valuation per dwelling unit, to the extent it represents
increased assessed valuation, shall be twenty-five percent exempt; (E)
any portion of total assessed valuation attributable to the next eight
thousand dollars of total assessed valuation per dwelling unit, to the
extent it represents increased assessed valuation per dwelling unit,
shall be fully taxable. Property with a total assessed valuation per
dwelling unit of thirty-eight thousand dollars or more shall not be
eligible for a tax exemption under this section.
(2) In calculating the amount of increased assessed valuation that
will be exempt from taxation pursuant to the formula in subparagraph one
of this paragraph, the full amount of total assessed valuation that does
not represent increased assessed valuation shall be applied in such
formula prior to the inclusion of any amount of increased assessed
valuation.
(3) Where the real property is occupied in part for residential
purposes and in part for non-residential purposes, the assessed
valuation of the property shall be appropriately allocated between the
residential and non-residential portions. In computing the total
assessed valuation per dwelling unit under this paragraph, only the
amount of valuation so allocated to the residential portion shall be
considered.
(4) Commencing with the assessment roll for the year nineteen hundred
eighty-four, where there has been a change in the level of assessment
from the assessment roll of the prior year of properties receiving
exemptions under this section, the local agency responsible for
assessment of real property may petition the commissioner to certify the
percentage of such change for the purposes of this section. In such
petition, the local agency shall submit such information as the
commissioner shall require in order to certify the percentage of such
change. The commissioner may also make such a certification on its own
motion. Upon receipt of such certification from the commissioner, the
local housing agency may modify the dollar values of total assessed
valuation per dwelling unit in subparagraph one of this paragraph to
reflect the percentage change in the level of assessment as shown in

such certification. As used in this subparagraph, the term "change in
the level of assessment" means the net increase or decrease in the
assessed valuation of properties in the assessing unit that received
exemptions under this section in the current year as compared to those
that received exemptions under this section in the prior year as a
result of assessing such properties at a higher or lower ratio of full
value.
(5) (A) Notwithstanding the provisions of subparagraph one of this
paragraph, the local housing agency may reduce or remove the limitations
on the exemption from taxation provided in such subparagraph with
respect to a particular property undergoing alteration or improvement,
upon application of the property owner and a determination by the agency
that:
(i) The increased benefit will increase the number of dwelling units
or improve the quality of dwelling units that will be affordable to
persons of low or moderate income; and
(ii) The increased benefit is necessary to make economically viable
the increase in the number of dwelling units or improvement in the
quality of dwelling units that will be affordable to persons of low or
moderate income.
(B) As used in this subparagraph, the term persons of low or moderate
income shall be persons who would qualify for housing subsidies pursuant
to section two hundred thirty-five of the national housing act, as
amended, at one hundred thirty-five percent of the income limitations
provided herein.
(C) Upon receiving an application under this subparagraph in proper
form, the local housing agency shall immediately submit it to the
community board for the area in which the project is located, which may,
within forty-five days of receiving it and after a public hearing, make
recommendations to the agency as to the application. The agency shall
act on the application within sixty days of receiving it from the
property owner in proper form, but not before expiration of the time for
the community board to make its recommendations, unless the board has
acted sooner.
(d) The local housing agency may set forth preliminarily the terms of
a determination under paragraph (b) or (c) of this subdivision prior to
the commencement of the conversion, alteration or improvement. Any such
determination shall take effect after completion of the work.
(e) Publication of local housing agency determinations. Any
determination of the local housing agency to increase an abatement under
paragraph (b) of this subdivision or to reduce or remove the exemption
limitations under paragraph (c) of this subdivision shall state the
basis for the determination and the data on which the determination was
based. Such determination shall be published in the official publication
of the city, or if no such publication exists in a newspaper with
general circulation in the city, for five consecutive days after the
determination is rendered.
(f) Proration of assessed valuation. Notwithstanding the provisions of
paragraph (b) of subdivision nine of this section, the provisions of
this paragraph shall apply to changes in assessments resulting from
conversion, alterations or improvements which are not subject to the
abatement or exemption limitations of paragraphs (b) and (c) of this
subdivision. During the period of such exemptions the assessment on any
such land and dwelling after such alterations and improvements,
exclusive of the increase in valuation which is subject to exemption in
full or proportionally under subdivision one of this section, shall not
exceed the valuation of the previously existing dwelling appearing on
the assessment rolls after the taxable status date immediately preceding

the commencement of such alterations and improvements plus the value of
the land, any improvements other than those made under the provisions of
this section and the proportion of increased assessed valuation that is
not exempt from taxation under this section, which proportion shall
remain constant during the term of the exemption. Where the alteration
or improvement qualified under subparagraph two of paragraph (a) of
subdivision two of this section or under clause (A) or (B) of
subparagraph one of paragraph (a) of this subdivision, the exemption
shall also include an exemption from taxation for local purposes for
twelve years upon that portion of the assessment, if any, which exceeds
the transition assessment, as defined in subdivision two of section
eighteen hundred five of this chapter, in effect at the time of
commencement of the exemption hereunder.
12. Harassment. (a) The provisions of this subdivision apply to and
are additional requirements for claiming or receiving:
(1) any tax exemption under this section; or
(2) any tax abatement under this section where the certified
reasonable cost per dwelling unit of the conversion, alteration or
improvement (including the cost of any conversion, alteration or
improvement for which an abatement was approved within four years prior
to commencement of the conversion, alteration or improvement) exceeds
seven thousand five hundred dollars.
(b) The owner of the property shall, not less than thirty days before
the commencement of the conversion, alteration or improvement
(hereinafter referred to as the "cut-off date"), file with the local
housing agency administering the local law, an affidavit or, where any
information referred to in subparagraph one of this paragraph changes
prior to applying for or claiming any benefit under this section, an
amending affidavit, setting forth the following information:
(1) every owner of record and owner of a substantial interest in the
property or entity owning the property or sponsoring the conversion,
alteration or improvement;
(2) a statement that none of such persons had, within the five years
prior to the cut-off date, been found to have harassed or unlawfully
evicted tenants by judgment or determination of a court or agency
(including a non-governmental agency having appropriate legal
jurisdiction) under the penal law, any state or local law regulating
rents or any state or local law relating to harassment of tenants or
unlawful eviction; and
(3) any change in the information required to be set forth.
(c) No conversion, alteration or improvement subject to this
subdivision shall be eligible for tax exemption or tax abatement under
this section where:
(1) any affidavit required under this subdivision has not been filed;
or
(2) any such affidavit contains a willful misrepresentation or
omission of any material fact; or
(3) any person referred to in subparagraph one of paragraph (b) of
this subdivision has been found to have harassed or unlawfully evicted
tenants as described in that paragraph, until and unless the finding is
reversed on appeal, provided that any such finding after the cut-off
date shall not apply to or affect any tax abatement or exemption for the
conversion, alteration or improvement covered by the affidavit.
(d) The local housing agency administering this law and the local
government agency responsible for real property tax assessment shall
maintain a list of affidavits as described in paragraph (b) of this
subdivision. Each agency shall review that list with respect to each
application or claim for benefits subject to this subdivision.
(e) "Substantial interest" as used in subparagraph one of paragraph
(b) of this subdivision shall mean ownership of an interest of ten per
centum or more in the property or entity owning the property or
sponsoring the conversion, alteration or improvement.
(f) Where the conversion, alteration or improvement is commenced
before August first, nineteen hundred eighty-three, the cut-off date
shall be as set forth in this subdivision, but no affidavit shall be
required to be filed until thirty days after the effective date of this
subdivision.
13. Additional limitation. The benefits of this section shall not
apply to any conversion of or alteration or improvement to any class B
multiple dwelling or class A multiple dwelling used in whole or in part
for single room occupancy, regardless of the status or use of the
building after the conversion, alteration or improvement unless such
conversion, alteration or improvement is carried out with the
substantial assistance of grants, loans or subsidies from any federal,
state or local agency or instrumentality.
14. Conversion of properties to residential use. The benefits of this
section shall not apply to any conversion of property to residential use
where the conversion was contrary to the applicable zoning resolution
and was permitted only by virtue of a variance as to use, unless the
local law is amended to explicitly provide that benefits shall be
available in such cases. The provisions of this subdivision do not apply
to conversions of residential units qualified for the protection of
article seven-C of the multiple dwelling law under subparagraph one of
paragraph (a) of subdivision one of this section.
15. Authority of city to limit local law. Where a city enacts or
amends a local law under this section, the local law may restrict, limit
or condition the eligibility, scope or amount of the benefits under the
local law in any manner, provided that the local law may not grant
benefits beyond those provided in this section.
16. Institutional lenders; cost certification. The rules of the local
housing agency administering such local law or ordinance shall make
provision for circumstances in which an institutional mortgage lender
(as defined in such rules) which has provided financing for alterations
or improvements to a building or structure and has become a successor in
interest (as defined in such rules) to the original owner of such
building or structure, after diligent efforts to obtain original
contracts, checks and other records normally reviewed by such agency to
verify claimed costs, is unable to obtain part or all of such records.
Under such circumstances the rules shall permit substitution in whole or
in part, as the case may be, of documentation certified by the lender
showing the amounts advanced by the lender pursuant to the mortgage loan
to finance such alterations or improvements, along with such other
documentation as the agency may require.
17. (a) For purposes of this subdivision, "substantial governmental
assistance" shall mean:
(i) grants, loans or subsidies from any federal, state or local agency
or instrumentality in furtherance of a program for the development of
affordable housing approved by the local housing agency, including,
without limitation, financing or insurance provided by the state of New
York mortgage agency of the New York city residential mortgage insurance
corporation; or
(ii) a written agreement between a housing development fund
corporation and the local housing agency limiting the incomes of persons
entitled to purchase shares or rent housing accommodations therein.
(b) Any local law or ordinance providing for benefits pursuant to this
section must also provide the following with respect to conversions,

alterations or improvements completed on or after December thirty-first,
two thousand eleven:
(i) except as otherwise provided in this section with respect to
multiple dwellings, buildings and structures owned and operated either
by limited-profit housing companies established pursuant to article two
of the private housing finance law or redevelopment companies
established pursuant to article five of the private housing finance law,
or with respect to a group of multiple dwellings that was developed as a
planned community and that is owned as two separate condominiums
containing a total of ten thousand or more dwelling units, any multiple
dwelling, building or structure that is owned as a cooperative or a
condominium that has an average assessed value per dwelling unit that
exceeds the assessed valuation limitation as provided in paragraph (c)
of this subdivision shall only be eligible for such benefits if the
alterations or improvements for which such multiple dwelling, building
or structure has applied for the benefits pursuant to this section were
carried out with substantial governmental assistance; and
(ii) no benefits pursuant to this section shall be granted for the
conversion of any non-residential building or structure into a class A
multiple dwelling unless such conversion was carried out with
substantial governmental assistance.
(c) Assessed value limitation. (i) For final assessment rolls to be
completed prior to two thousand seventeen, the assessed value limitation
shall be thirty thousand dollars.
(ii) For the final assessment roll to be completed in two thousand
seventeen the assessed value limitation shall be thirty-two thousand
dollars increased by the cost-of-living adjustment percentage of two
thousand seventeen. For the purposes of this computation, the
cost-of-living adjustment percentage of two thousand seventeen shall be
equal to the "applicable increase percentage" used by the United States
commissioner of social security to determine the monthly social security
benefits payable in two thousand seventeen to individuals, as provided
by subsection (i) of section four hundred fifteen of title forty-two of
the United States code.
(iii) For final assessment rolls to be completed in each ensuing year,
the applicable assessed value limitation, cost-of-living adjustment
percentage and applicable increase percentage shall all be advanced by
one year, and the assessed valuation limitation shall be the previously
applicable assessed value limitation increased by the new cost-of-living
adjustment percentage. If there should be a year for which there is no
applicable increase percentage due to a general benefit increase as
defined by subdivision three of subsection (i) of section four hundred
fifteen of title forty-two of the United States code, the applicable
increase percentage for purposes of this computation shall be deemed to
be the percentage which would have yielded that general benefit
increase.
(iv) Notwithstanding anything to the contrary contained herein, the
assessed value limitation shall not at any time exceed forty thousand
dollars.
18. Any local law or ordinance providing for benefits pursuant to this
section must also provide, with respect to conversions, alterations or
improvements for which application was made after the effective date of
this subdivision, that if such conversions, alterations or improvements
are not completed on the date upon which such local housing agency
inspects the items of work claimed in such application, the local
housing agency shall require the applicant to pay two times the actual
cost for any additional inspections needed to verify the completion of
such conversion, alteration or improvement.

19. The revocation of benefits granted to any multiple dwelling,
building or structure pursuant to this section shall not exempt any
dwelling unit therein from continued compliance with the requirements of
this section or of any local law or ordinance providing for benefits
pursuant to this section.
20. Notwithstanding the provisions of any general, special or local
law or any local ordinance providing for benefits pursuant to this
section the department may require that the applications for exemption
or abatement under this section that are filed on or after a date
specified in such local law or ordinance be filed electronically.

Structure New York Laws