Bill Text: NY A10780 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to the collection of any rent adjustment to the legal regulated rent for a major capital improvement for any housing accommodation; relates to exemption from taxation of any increase in assessed valuation of real property resulting from alterations and improvements.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-06-18 - referred to housing [A10780 Detail]
Download: New_York-2011-A10780-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
10780
I N A S S E M B L Y
June 18, 2012
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. V. Lopez,
Silver) -- read once and referred to the Committee on Housing
AN ACT to amend the administrative code of the city of New York, the
emergency tenant protection act of nineteen seventy-four and the emer-
gency housing rent control law, in relation to the collection of any
rent adjustment to the legal regulated rent for a major capital
improvement for any housing accommodation; to amend the real property
tax law, in relation to exemption from taxation of any increase in
assessed valuation of real property resulting from alterations and
improvements; and to amend the multiple dwelling law and the real
property tax law, in relation to interim multiple dwellings in a city
with a population of one million or more
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section
2 26-405 of the administrative code of the city of New York, as amended by
3 chapter 749 of the laws of 1990, is amended to read as follows:
4 (g) There has been since July first, nineteen hundred seventy, a major
5 capital improvement required for the operation, preservation or mainte-
6 nance of the structure. An adjustment under this subparagraph [(g)]
7 shall be in an amount sufficient to amortize the cost of the improve-
8 ments pursuant to this subparagraph [(g)] over a seven-year period. THE
9 COLLECTION OF ANY RENT ADJUSTMENT TO THE LEGAL REGULATED RENT FOR A
10 MAJOR CAPITAL IMPROVEMENT FOR ANY HOUSING ACCOMMODATION SHALL NOT EXCEED
11 SIX PERCENT IN ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING
12 THE INCREASE OVER THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS WITH
13 COLLECTIBILITY OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD
14 IN SIMILAR INCREMENTS AND ADDED TO THE MAXIMUM RENT AS ESTABLISHED OR
15 SET IN FUTURE YEARS. IN NO EVENT SHALL MORE THAN ONE SIX PERCENT
16 INCREASE IN THE MAXIMUM RENT BE COLLECTED IN THE SAME YEAR; or
17 S 2. Paragraph 6 of subdivision c of section 26-511 of the administra-
18 tive code of the city of New York, as amended by chapter 116 of the laws
19 of 1997, is amended to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16345-01-2
A. 10780 2
1 (6) provides criteria whereby the commissioner may act upon applica-
2 tions by owners for increases in excess of the level of fair rent
3 increase established under this law provided, however, that such crite-
4 ria shall provide (a) as to hardship applications, for a finding that
5 the level of fair rent increase is not sufficient to enable the owner to
6 maintain approximately the same average annual net income (which shall
7 be computed without regard to debt service, financing costs or manage-
8 ment fees) for the three year period ending on or within six months of
9 the date of an application pursuant to such criteria as compared with
10 annual net income, which prevailed on the average over the period nine-
11 teen hundred sixty-eight through nineteen hundred seventy, or for the
12 first three years of operation if the building was completed since nine-
13 teen hundred sixty-eight or for the first three fiscal years after a
14 transfer of title to a new owner provided the new owner can establish to
15 the satisfaction of the commissioner that he or she acquired title to
16 the building as a result of a bona fide sale of the entire building and
17 that the new owner is unable to obtain requisite records for the fiscal
18 years nineteen hundred sixty-eight through nineteen hundred seventy
19 despite diligent efforts to obtain same from predecessors in title and
20 further provided that the new owner can provide financial data covering
21 a minimum of six years under his or her continuous and uninterrupted
22 operation of the building to meet the three year to three year compar-
23 ative test periods herein provided; and (b) as to completed building-
24 wide major capital improvements, for a finding that such improvements
25 are deemed depreciable under the Internal Revenue Code and that the cost
26 is to be amortized over a seven-year period, based upon cash purchase
27 price exclusive of interest or service charges. THE COLLECTION OF ANY
28 RENT ADJUSTMENT TO THE LEGAL REGULATED RENT FOR A MAJOR CAPITAL IMPROVE-
29 MENT FOR ANY HOUSING ACCOMMODATION SHALL NOT EXCEED SIX PERCENT IN ANY
30 YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE INCREASE OVER THE
31 RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS WITH COLLECTIBILITY OF ANY
32 DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD IN SIMILAR INCREMENTS
33 AND ADDED TO THE MAXIMUM RENT AS ESTABLISHED OR SET IN FUTURE YEARS. IN
34 NO EVENT SHALL MORE THAN ONE SIX PERCENT INCREASE IN THE MAXIMUM RENT BE
35 COLLECTED IN THE SAME YEAR. Notwithstanding anything to the contrary
36 contained herein, no hardship increase granted pursuant to this para-
37 graph shall, when added to the annual gross rents, as determined by the
38 commissioner, exceed the sum of, (i) the annual operating expenses, (ii)
39 an allowance for management services as determined by the commissioner,
40 (iii) actual annual mortgage debt service (interest and amortization) on
41 its indebtedness to a lending institution, an insurance company, a
42 retirement fund or welfare fund which is operated under the supervision
43 of the banking or insurance laws of the state of New York or the United
44 States, and (iv) eight and one-half percent of that portion of the fair
45 market value of the property which exceeds the unpaid principal amount
46 of the mortgage indebtedness referred to in subparagraph (iii) of this
47 paragraph. Fair market value for the purposes of this paragraph shall be
48 six times the annual gross rent. The collection of any increase in the
49 stabilized rent for any apartment pursuant to this paragraph shall not
50 exceed six percent in any year from the effective date of the order
51 granting the increase over the rent set forth in the schedule of gross
52 rents, with collectability of any dollar excess above said sum to be
53 spread forward in similar increments and added to the stabilized rent as
54 established or set in future years;
55 S 3. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
56 576 of the laws of 1974, constituting the emergency tenant protection
A. 10780 3
1 act of nineteen seventy-four, as amended by chapter 749 of the laws of
2 1990, is amended to read as follows:
3 (3) there has been since January first, nineteen hundred seventy-four
4 a major capital improvement required for the operation, preservation or
5 maintenance of the structure. An adjustment under this paragraph shall
6 be in an amount sufficient to amortize the cost of the improvements
7 pursuant to this paragraph over a seven-year period. THE COLLECTION OF
8 ANY RENT ADJUSTMENT TO THE LEGAL REGULATED RENT FOR A MAJOR CAPITAL
9 IMPROVEMENT FOR ANY HOUSING ACCOMMODATION SHALL NOT EXCEED SIX PERCENT
10 IN ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE INCREASE
11 OVER THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS WITH COLLECTIBIL-
12 ITY OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD IN SIMILAR
13 INCREMENTS AND ADDED TO THE MAXIMUM RENT AS ESTABLISHED OR SET IN FUTURE
14 YEARS. IN NO EVENT SHALL MORE THAN ONE SIX PERCENT INCREASE IN THE MAXI-
15 MUM RENT BE COLLECTED IN THE SAME YEAR, or
16 S 4. The second undesignated paragraph of paragraph (a) of subdivision
17 4 of section 4 of chapter 274 of the laws of 1946, constituting the
18 emergency housing rent control law, as amended by section 25 of part B
19 of chapter 97 of the laws of 2011, is amended to read as follows:
20 No application for adjustment of maximum rent based upon a sales price
21 valuation shall be filed by the landlord under this subparagraph prior
22 to six months from the date of such sale of the property. In addition,
23 no adjustment ordered by the commission based upon such sales price
24 valuation shall be effective prior to one year from the date of such
25 sale. Where, however, the assessed valuation of the land exceeds four
26 times the assessed valuation of the buildings thereon, the commission
27 may determine a valuation of the property equal to five times the equal-
28 ized assessed valuation of the buildings, for the purposes of this
29 subparagraph. The commission may make a determination that the valu-
30 ation of the property is an amount different from such equalized
31 assessed valuation where there is a request for a reduction in such
32 assessed valuation currently pending; or where there has been a
33 reduction in the assessed valuation for the year next preceding the
34 effective date of the current assessed valuation in effect at the time
35 of the filing of the application. Net annual return shall be the amount
36 by which the earned income exceeds the operating expenses of the proper-
37 ty, excluding mortgage interest and amortization, and excluding allow-
38 ances for obsolescence and reserves, but including an allowance for
39 depreciation of two per centum of the value of the buildings exclusive
40 of the land, or the amount shown for depreciation of the buildings in
41 the latest required federal income tax return, whichever is lower;
42 provided, however, that (1) no allowance for depreciation of the build-
43 ings shall be included where the buildings have been fully depreciated
44 for federal income tax purposes or on the books of the owner; or (2) the
45 landlord who owns no more than four rental units within the state has
46 not been fully compensated by increases in rental income sufficient to
47 offset unavoidable increases in property taxes, fuel, utilities, insur-
48 ance and repairs and maintenance, excluding mortgage interest and amor-
49 tization, and excluding allowances for depreciation, obsolescence and
50 reserves, which have occurred since the federal date determining the
51 maximum rent or the date the property was acquired by the present owner,
52 whichever is later; or (3) the landlord operates a hotel or rooming
53 house or owns a cooperative apartment and has not been fully compensated
54 by increases in rental income from the controlled housing accommodations
55 sufficient to offset unavoidable increases in property taxes and other
56 costs as are allocable to such controlled housing accommodations,
A. 10780 4
1 including costs of operation of such hotel or rooming house, but exclud-
2 ing mortgage interest and amortization, and excluding allowances for
3 depreciation, obsolescence and reserves, which have occurred since the
4 federal date determining the maximum rent or the date the landlord
5 commenced the operation of the property, whichever is later; or (4) the
6 landlord and tenant voluntarily enter into a valid written lease in good
7 faith with respect to any housing accommodation, which lease provides
8 for an increase in the maximum rent not in excess of fifteen per centum
9 and for a term of not less than two years, except that where such lease
10 provides for an increase in excess of fifteen per centum, the increase
11 shall be automatically reduced to fifteen per centum; or (5) the land-
12 lord and tenant by mutual voluntary written agreement agree to a
13 substantial increase or decrease in dwelling space or a change in the
14 services, furniture, furnishings or equipment provided in the housing
15 accommodations; provided that an owner shall be entitled to a rent
16 increase where there has been a substantial modification or increase of
17 dwelling space or an increase in the services, or installation of new
18 equipment or improvements or new furniture or furnishings provided in or
19 to a tenant's housing accommodation. The permanent increase in the maxi-
20 mum rent for the affected housing accommodation shall be one-fortieth,
21 in the case of a building with thirty-five or fewer housing accommo-
22 dations, or one-sixtieth, in the case of a building with more than thir-
23 ty-five housing accommodations where such permanent increase takes
24 effect on or after September twenty-fourth, two thousand eleven, of the
25 total cost incurred by the landlord in providing such modification or
26 increase in dwelling space, services, furniture, furnishings or equip-
27 ment, including the cost of installation, but excluding finance charges
28 provided further that an owner who is entitled to a rent increase pursu-
29 ant to this clause shall not be entitled to a further rent increase
30 based upon the installation of similar equipment, or new furniture or
31 furnishings within the useful life of such new equipment, or new furni-
32 ture or furnishings. The owner shall give written notice to the commis-
33 sion of any such adjustment pursuant to this clause; or (6) there has
34 been, since March first, nineteen hundred fifty, an increase in the
35 rental value of the housing accommodations as a result of a substantial
36 rehabilitation of the building or housing accommodation therein which
37 materially adds to the value of the property or appreciably prolongs its
38 life, excluding ordinary repairs, maintenance and replacements; or (7)
39 there has been since March first, nineteen hundred fifty, a major capi-
40 tal improvement required for the operation, preservation or maintenance
41 of the structure. THE COLLECTION OF ANY RENT ADJUSTMENT TO THE LEGAL
42 REGULATED RENT FOR A MAJOR CAPITAL IMPROVEMENT FOR ANY HOUSING ACCOMMO-
43 DATION SHALL NOT EXCEED SIX PERCENT IN ANY YEAR FROM THE EFFECTIVE DATE
44 OF THE ORDER GRANTING THE INCREASE OVER THE RENT SET FORTH IN THE SCHED-
45 ULE OF GROSS RENTS WITH COLLECTIBILITY OF ANY DOLLAR EXCESS ABOVE SAID
46 SUM TO BE SPREAD FORWARD IN SIMILAR INCREMENTS AND ADDED TO THE MAXIMUM
47 RENT AS ESTABLISHED OR SET IN FUTURE YEARS. IN NO EVENT SHALL MORE THAN
48 ONE SIX PERCENT INCREASE IN THE MAXIMUM RENT BE COLLECTED IN THE SAME
49 YEAR; or (8) there has been since March first, nineteen hundred fifty,
50 in structures containing more than four housing accommodations, other
51 improvements made with the express consent of the tenants in occupancy
52 of at least seventy-five per centum of the housing accommodations,
53 provided, however, that no adjustment granted hereunder shall exceed
54 fifteen per centum unless the tenants have agreed to a higher percentage
55 of increase, as herein provided; or (9) there has been, since March
56 first, nineteen hundred fifty, a subletting without written consent from
A. 10780 5
1 the landlord or an increase in the number of adult occupants who are not
2 members of the immediate family of the tenant, and the landlord has not
3 been compensated therefor by adjustment of the maximum rent by lease or
4 order of the commission or pursuant to the federal act; or (10) the
5 presence of unique or peculiar circumstances materially affecting the
6 maximum rent has resulted in a maximum rent which is substantially lower
7 than the rents generally prevailing in the same area for substantially
8 similar housing accommodations.
9 S 5. Subdivision dd of section 11-243 of the administrative code of
10 the city of New York, as added by local law number 41 of the city of New
11 York for the year 1988, is amended to read as follows:
12 dd. [Partial waiver] WAIVER of rent adjustments attributable to major
13 capital improvements. (1) The provisions of this subdivision apply to
14 and are additional requirements for claiming or receiving any tax abate-
15 ment under this section, except as provided in paragraphs three and four
16 of this subdivision.
17 (2) The owner of the property shall file with the department of hous-
18 ing preservation and development, on the date any application for bene-
19 fits is made, a declaration stating that in consideration of any tax
20 abatement benefits which may be received pursuant to such application
21 for alterations or improvements constituting a major capital improve-
22 ment, such owner agrees to waive the collection of a [portion of the
23 total annual amount of any] rent adjustment attributable to such major
24 capital improvement which may be granted by the New York state division
25 of housing and community renewal pursuant to the rent stabilization code
26 equal to [one-half of] the total annual amount of the tax abatement
27 benefits which the property receives pursuant to such application with
28 respect to such alterations or improvements. Such waiver shall commence
29 on the date of the first collection of such rent adjustment[, provided
30 that, in the event that such tax abatement benefits were received prior
31 to such first collection, the amount waived shall be increased to
32 account for such tax abatement benefits so received]. Following the
33 expiration of a tax abatement for alterations or improvements constitut-
34 ing a major capital improvement for which a rent adjustment has been
35 granted by such division, the owner may collect the full amount of annu-
36 al rent permitted pursuant to such rent adjustment. A copy of such
37 declaration shall be filed simultaneously with the New York state divi-
38 sion of housing and community renewal. Such declaration shall be binding
39 upon such owner, and his or her successors and assigns.
40 (3) The provisions of this subdivision shall not apply to substantial
41 rehabilitation of buildings vacant when alterations or improvements are
42 commenced or to buildings rehabilitated with the substantial assistance
43 of city, state or federal subsidies.
44 (4) The provisions of this subdivision shall apply only to alterations
45 and improvements commenced after its effective date.
46 S 6. The opening paragraph of paragraph (a) of subdivision 1 of
47 section 489 of the real property tax law, as amended by chapter 244 of
48 the laws of 2006, is amended to read as follows:
49 Any city to which the multiple dwelling law is applicable, acting
50 through its local legislative body or other governing agency, is hereby
51 authorized and empowered, to and including June first, two thousand
52 [eleven] FIFTEEN, to adopt and amend local laws or ordinances providing
53 that any increase in assessed valuation of real property shall be exempt
54 from taxation for local purposes, as provided herein, to the extent such
55 increase results from:
A. 10780 6
1 S 7. The closing paragraph of subparagraph 6 of paragraph (a) of
2 subdivision 1 of section 489 of the real property tax law, as amended by
3 chapter 244 of the laws of 2006, is amended to read as follows:
4 Such conversion, alterations or improvements shall be completed within
5 thirty-six months after the date on which same shall be started except
6 that such thirty-six month limitation shall not apply to conversions of
7 residential units which are registered with the loft board in accordance
8 with article seven-C of the multiple dwelling law pursuant to subpara-
9 graph one of this paragraph. Notwithstanding the foregoing, a sixty
10 month period for completion shall be available for alterations or
11 improvements undertaken by a housing development fund company organized
12 pursuant to article eleven of the private housing finance law, which are
13 carried out with the substantial assistance of grants, loans or subsi-
14 dies from any federal, state or local governmental agency or instrumen-
15 tality or which are carried out in a property transferred from such city
16 if alterations and improvements are completed within seven years after
17 the date of transfer. In addition, the local housing agency is hereby
18 empowered to grant an extension of the period of completion for any
19 project carried out with the substantial assistance of grants, loans or
20 subsidies from any federal, state or local governmental agency or
21 instrumentality, if such alterations or improvements are completed with-
22 in sixty months from commencement of construction. Provided, further,
23 that such conversion, alterations or improvements shall in any event be
24 completed prior to December thirty-first, two thousand [eleven] FIFTEEN.
25 Exemption for conversions, alterations or improvements pursuant to
26 subparagraph one, two, three or four of this paragraph shall continue
27 for a period not to exceed fourteen years and begin no sooner than the
28 first quarterly tax bill immediately following the completion of such
29 conversion, alterations or improvements. Exemption for alterations or
30 improvements pursuant to this subparagraph or subparagraph five of this
31 paragraph shall continue for a period not to exceed thirty-four years
32 and shall begin no sooner than the first quarterly tax bill immediately
33 following the completion of such alterations or improvements. Such
34 exemption shall be equal to the increase in the valuation which is
35 subject to exemption in full or proportionally under this subdivision
36 for ten or thirty years, whichever is applicable. After such period of
37 time, the amount of such exempted assessed valuation of such improve-
38 ments shall be reduced by twenty percent in each succeeding year until
39 the assessed value of the improvements are fully taxable. Provided,
40 however, exemption for any conversion, alterations or improvements which
41 are aided by a loan or grant under article eight, eight-A, eleven,
42 twelve, fifteen or twenty-two of the private housing finance law,
43 section six hundred ninety-six-a or section ninety-nine-h of the general
44 municipal law, or section three hundred twelve of the housing act of
45 nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the Cranston-Gonza-
46 lez national affordable housing act (42 U.S.C.A. 12701 et. seq.), or
47 started after July first, nineteen hundred eighty-three by a housing
48 development fund company organized pursuant to article eleven of the
49 private housing finance law which are carried out with the substantial
50 assistance of grants, loans or subsidies from any federal, state or
51 local governmental agency or instrumentality or which are carried out in
52 a property transferred from any city and where alterations and improve-
53 ments are completed within seven years after the date of transfer may
54 commence at the beginning of any tax quarter subsequent to the start of
55 such conversion, alterations or improvements and prior to the completion
56 of such conversion, alterations or improvements.
A. 10780 7
1 S 8. Section 489 of the real property tax law is amended by adding
2 four new subdivisions 17, 18, 19 and 20 to read as follows:
3 17. (A) FOR PURPOSES OF THIS SUBDIVISION, "SUBSTANTIAL GOVERNMENTAL
4 ASSISTANCE" SHALL MEAN:
5 (1) GRANTS, LOANS OR SUBSIDIES FROM ANY FEDERAL, STATE OR LOCAL AGENCY
6 OR INSTRUMENTALITY IN FURTHERANCE OF A PROGRAM FOR THE DEVELOPMENT OF
7 AFFORDABLE HOUSING APPROVED BY THE LOCAL HOUSING AGENCY, INCLUDING,
8 WITHOUT LIMITATION, FINANCING OR INSURANCE PROVIDED BY THE STATE OF NEW
9 YORK MORTGAGE AGENCY OF THE NEW YORK CITY RESIDENTIAL MORTGAGE INSURANCE
10 CORPORATION; OR
11 (2) A WRITTEN AGREEMENT BETWEEN A HOUSING DEVELOPMENT FUND CORPORATION
12 AND THE LOCAL HOUSING AGENCY LIMITING THE INCOMES OF PERSONS ENTITLED TO
13 PURCHASE SHARES OR RENT HOUSING ACCOMMODATIONS THEREIN.
14 (B) ANY LOCAL LAW OR ORDINANCE PROVIDING FOR BENEFITS PURSUANT TO THIS
15 SECTION MUST ALSO PROVIDE THAT NO BENEFITS PURSUANT TO THIS SECTION
16 SHALL BE GRANTED FOR THE CONVERSION OF ANY NON-RESIDENTIAL BUILDING OR
17 STRUCTURE INTO A CLASS A MULTIPLE DWELLING, COMPLETED ON OR AFTER DECEM-
18 BER THIRTY-FIRST, TWO THOUSAND ELEVEN, UNLESS SUCH CONVERSION WAS
19 CARRIED OUT WITH SUBSTANTIAL GOVERNMENTAL ASSISTANCE.
20 18. ANY LOCAL LAW OR ORDINANCE PROVIDING FOR BENEFITS PURSUANT TO THIS
21 SECTION MUST ALSO PROVIDE, WITH RESPECT TO CONVERSIONS, ALTERATIONS OR
22 IMPROVEMENTS FOR WHICH APPLICATION WAS MADE AFTER THE EFFECTIVE DATE OF
23 THIS SUBDIVISION, THAT IF SUCH CONVERSIONS, ALTERATIONS OR IMPROVEMENTS
24 ARE NOT COMPLETED ON THE DATE UPON WHICH SUCH LOCAL HOUSING AGENCY
25 INSPECTS THE ITEMS OF WORK CLAIMED IN SUCH APPLICATION, THE LOCAL HOUS-
26 ING AGENCY SHALL REQUIRE THE APPLICANT TO PAY THE ACTUAL COST FOR ANY
27 ADDITIONAL INSPECTIONS NEEDED TO VERIFY THE COMPLETION OF SUCH CONVER-
28 SION, ALTERATION OR IMPROVEMENT.
29 19. THE REVOCATION OF BENEFITS GRANTED TO ANY MULTIPLE DWELLING,
30 BUILDING OR STRUCTURE PURSUANT TO THIS SECTION SHALL NOT EXEMPT ANY
31 DWELLING UNIT THEREIN FROM CONTINUED COMPLIANCE WITH THE REQUIREMENTS OF
32 THIS SECTION OR OF ANY LOCAL LAW OR ORDINANCE PROVIDING FOR BENEFITS
33 PURSUANT TO THIS SECTION.
34 20. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
35 LAW OR ANY LOCAL ORDINANCE PROVIDING FOR BENEFITS PURSUANT TO THIS
36 SECTION MAY REQUIRE THAT THE APPLICATIONS FOR EXEMPTION OR ABATEMENT
37 UNDER THIS SECTION THAT ARE FILED ON OR AFTER A DATE SPECIFIED IN SUCH
38 LOCAL LAW OR ORDINANCE BE FILED ELECTRONICALLY.
39 S 9. Subdivision 5 of section 281 of the multiple dwelling law, as
40 amended by chapter 139 of the laws of 2011, is amended to read as
41 follows:
42 5. Notwithstanding the provisions of paragraphs (i), (iii) and (iv) of
43 subdivision two of this section, but subject to paragraphs (i) and (ii)
44 of subdivision one of this section and paragraph (ii) of subdivision two
45 of this section, the term "interim multiple dwelling" shall include
46 buildings, structures or portions thereof that are located in a city of
47 more than one million persons which were occupied for residential
48 purposes as the residence or home of any three or more families living
49 independently from one another for a period of twelve consecutive months
50 during the period commencing January first, two thousand eight, and
51 ending December thirty-first, two thousand nine, provided that the unit:
52 is not located in a basement or cellar and has at least one entrance
53 that does not require passage through another residential unit to obtain
54 access to the unit, has at least one window opening onto a street or a
55 lawful yard or court as defined in the zoning resolution for such muni-
56 cipality, and is at least [five hundred fifty] FOUR HUNDRED square feet
A. 10780 8
1 in area. The term "interim multiple dwelling" as used in this subdivi-
2 sion shall not include (i) any building in an industrial business zone
3 established pursuant to chapter six-D of title twenty-two of the admin-
4 istrative code of the city of New York except that a building in the
5 Williamsburg/Greenpoint or North Brooklyn industrial business zones and
6 a building located in that portion of the Long Island city industrial
7 business zone that has frontage on either side of forty-seventh avenue
8 or is located north of forty-seventh avenue and south of Skillman avenue
9 or in that portion of the Long Island city industrial business zone that
10 is located north of forty-fourth drive, south of Queens plaza north, and
11 west of twenty-third street may be included in the term "interim multi-
12 ple dwelling," or (ii) units in any building, OTHER THAN A BUILDING THAT
13 IS ALREADY DEFINED AS AN "INTERIM MULTIPLE DWELLING" PURSUANT TO SUBDI-
14 VISION ONE, TWO, THREE OR FOUR OF THIS SECTION, that, at the time this
15 subdivision shall take effect AND CONTINUING AT THE TIME OF THE
16 SUBMISSION OF AN APPLICATION FOR COVERAGE BY ANY PARTY, also contains a
17 use actively and currently pursued, which use is set forth in use groups
18 fifteen through eighteen, as described in the zoning resolution of such
19 municipality in effect on June twenty-first, two thousand ten, and which
20 the loft board has determined in rules and regulation is inherently
21 incompatible with residential use in the same building, provided that if
22 a building does not contain such active uses at the time this subdivi-
23 sion takes effect, no subsequent use by the owner of the building shall
24 eliminate the protections of this section for any residential occupants
25 in the building already qualified for such protections. The term "inter-
26 im multiple dwelling," as used in this subdivision shall also include
27 buildings, structures or portions thereof that are located north of West
28 24th Street and south of West 27th Street and west of tenth avenue and
29 east of eleventh avenue in a city of more than one million persons which
30 were occupied for residential purposes as the residence or home of any
31 two or more families living independently from one another for a period
32 of twelve consecutive months during the period commencing January first,
33 two thousand eight, and ending December thirty-first, two thousand nine
34 and subject to all the conditions and limitations of this subdivision
35 other than the number of units in the building. A reduction in the
36 number of occupied residential units in a building after meeting the
37 aforementioned twelve consecutive month requirement shall not eliminate
38 the protections of this section for any remaining residential occupants
39 qualified for such protections. Non-residential space in a building as
40 of the effective date of this subdivision shall be offered for residen-
41 tial use only after the obtaining of a residential certificate of occu-
42 pancy for such space and such space shall be exempt from this article,
43 even if a portion of such building may be an interim multiple dwelling.
44 S 10. Subdivision 2 of section 286 of the multiple dwelling law, as
45 amended by chapter 414 of the laws of 1999, subparagraphs (A) and (B) of
46 paragraph (ii) and paragraph (iii) as amended by chapter 135 of the laws
47 of 2010, is amended to read as follows:
48 2. (i) Prior to compliance with safety and fire protection standards
49 of article seven-B of this chapter, residential occupants qualified for
50 protection pursuant to this article shall be entitled to continued occu-
51 pancy, provided that the unit is their primary residence, and shall pay
52 the same rent, including escalations, specified in their lease or rental
53 agreement to the extent to which such lease or rental agreement remains
54 in effect or, in the absence of a lease or rental agreement, the same
55 rent most recently paid and accepted by the owner; if there is no lease
56 or other rental agreement in effect, rent adjustments prior to article
A. 10780 9
1 seven-B compliance shall be in conformity with guidelines to be set by
2 the loft board for such residential occupants within six months from the
3 effective date of this article.
4 (ii) In addition to any rent adjustment pursuant to paragraph (i) of
5 this subdivision, on or after June twenty-first, nineteen hundred nine-
6 ty-two, the rent for residential units in interim multiple dwellings
7 that are not yet in compliance with the requirements of subdivision one
8 of section two hundred eighty-four of this article shall be adjusted as
9 follows:
10 (A) Upon the owners' filing of an alteration application, as required
11 by paragraph (ii), (iii), (iv), (v), or (vi) of subdivision one of
12 section two hundred eighty-four of this article, an adjustment equal to
13 [six] THREE percent of the rent in effect at the time the owner files
14 the alteration application.
15 (B) Upon obtaining an alteration permit, as required by paragraph
16 (ii), (iii), (iv), (v), or (vi) of subdivision one of section two
17 hundred eighty-four of this article, an adjustment equal to [eight]
18 THREE percent of the rent in effect at the time the owner obtains the
19 alteration permit.
20 (C) Upon achieving compliance with the standards of safety and fire
21 protection set forth in article seven-B of this chapter for the residen-
22 tial portions of the building, an adjustment equal to [six] FOUR percent
23 of the rent in effect at the time the owner achieves such compliance.
24 (D) Owners who filed an alteration application prior to the effective
25 date of this subparagraph shall be entitled to a prospective adjustment
26 equal to six percent of the rent on the effective date of this subpara-
27 graph.
28 (E) Owners who obtained an alteration permit prior to June twenty-
29 first, nineteen hundred ninety-two shall be entitled to a prospective
30 adjustment equal to fourteen percent of the rent on June twenty-first,
31 nineteen hundred ninety-two.
32 (F) Owners who achieved compliance with the standards of safety and
33 fire protection set forth in article seven-B of this chapter for the
34 residential portions of the building prior to June twenty-first, nine-
35 teen hundred ninety-two shall be entitled to a prospective adjustment
36 equal to twenty percent of the rent on June twenty-first, nineteen
37 hundred ninety-two.
38 (iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
39 sion shall not apply to units which were rented at market value after
40 June twenty-first, nineteen hundred eighty-two and prior to June twen-
41 ty-first, nineteen hundred ninety-two. This paragraph shall not apply to
42 units made subject to this article by subdivision five of section two
43 hundred eighty-one of this article.
44 (iv) Payment of any rent adjustments pursuant to paragraph (ii) of
45 this subdivision shall commence the month immediately following the
46 month in which the act entitling the owner to the adjustment occurred.
47 S 11. The provisions of subdivision (c) of section 11-245 of the
48 administrative code of the city of New York shall not be applicable to
49 any multiple dwelling located on lots numbered 13 and 14 of Manhattan
50 block numbered 51, lots numbered 17, 18, and 21 of Manhattan block
51 number 90, lots numbered 7, 8, 10, 11, 57 and 111 of Manhattan block
52 numbered 1010, and lots numbered 33, 34 and 35 of Manhattan block
53 numbered 1259 as such lots and blocks are numbered as of the date this
54 act shall have become law, provided that the construction of such multi-
55 ple dwellings on those lots commences on or after January 1, 2007, and
56 on or before June 21, 2017, and provided that for all such multiple
A. 10780 10
1 dwellings the department of housing preservation and development of New
2 York City shall impose a requirement and certify that twenty percent of
3 the units on site are affordable to households of low and moderate
4 income pursuant to subdivision 7 of section 421-a of the real property
5 tax law. The provisions of subdivision (c) of section 11-245 of the
6 administrative code of the city of New York shall not be applicable to
7 any multiple dwelling that is located on lot 10 of Manhattan block
8 number 123, as such lot and block are numbered as of the date this act
9 shall have become law, provided that construction of such multiple
10 dwelling commenced on or after January 1, 2007, and on or before June
11 21, 2012, and provided further that the individual or agent thereof
12 seeking benefits pursuant to section 421-a of the real property tax law
13 enters into and fulfills the requirements of a memorandum of understand-
14 ing with the city of New York Department of Housing Preservation and
15 Development to fund in an amount not less than $9 million the
16 construction of affordable rental housing within the City of New York,
17 provided, however, that such amount required shall be reduced by the
18 value of negotiable certificates that the individual or agent thereof
19 seeking benefits purchased, pursuant to section 6-08 of title 28 of the
20 rules of the city of New York as such rules existed as of the date this
21 act shall have become law, in order to entitle such multiple dwelling to
22 the benefits pursuant to section 421-a of the real property tax law for
23 a specified number of units in the geographic exclusion area, provided
24 that such negotiable certificates were generated by a written agreement
25 with the Department of Housing Preservation and Development, and
26 provided further that, notwithstanding any other provision of law, bene-
27 fits granted pursuant to section 421-a of the real property tax law for
28 such multiple dwelling shall be granted as if construction commenced as
29 of the date this act shall have become law.
30 S 12. Subparagraph (i) of paragraph (a) of subdivision 2 of section
31 421-a of the real property tax law, as amended by section 38 of part B
32 of chapter 97 of the laws of 2011, is amended to read as follows:
33 (i) Within a city having a population of one million or more, new
34 multiple dwellings, except hotels, shall be exempt from taxation for
35 local purposes, other than assessments for local improvements, for the
36 tax year or years immediately following taxable status dates occurring
37 subsequent to the commencement and prior to the completion of
38 construction, but not to exceed three such tax years, [except for new
39 multiple dwellings the construction of which commenced between January
40 first, two thousand seven, and June thirtieth, two thousand nine, shall
41 have an additional thirty-six months to complete construction and shall
42 be eligible for full exemption from taxation for the first three years
43 of the period of construction; any eligible project that seeks to
44 utilize the six-year period of construction authorized by this section
45 must apply for a preliminary certificate of eligibility within one year
46 of the effective date of the rent act of 2011, provided, however that
47 such multiple dwellings shall be eligible for a maximum of three years
48 of benefits during the construction period,] and shall continue to be
49 exempt from such taxation in tax years immediately following the taxable
50 status date first occurring after the expiration of the exemption herein
51 conferred during construction so long as used at the completion of
52 construction for dwelling purposes for a period not to exceed ten years
53 in the aggregate after the taxable status date immediately following the
54 completion thereof, as follows:
55 (A) except as otherwise provided herein there shall be full exemption
56 from taxation during the period of construction or the period of three
A. 10780 11
1 years immediately following commencement of construction, whichever
2 expires sooner, [except for new multiple dwellings the construction of
3 which commenced between January first, two thousand seven, and June
4 thirtieth, two thousand nine, shall have an additional thirty-six months
5 to complete construction and shall be eligible for full exemption from
6 taxation for the first three years of the period of construction; any
7 eligible project that seeks to utilize the six-year period of
8 construction authorized by this section must apply for a preliminary
9 certificate of eligibility within one year of the effective date of the
10 rent act of 2011, provided, however that such multiple dwellings shall
11 be eligible for a maximum of three years of benefits during the
12 construction period,] and for two years following such period;
13 (B) followed by two years of exemption from eighty per cent of such
14 taxation;
15 (C) followed by two years of exemption from sixty per cent of such
16 taxation;
17 (D) followed by two years of exemption from forty per cent of such
18 taxation;
19 (E) followed by two years of exemption from twenty per cent of such
20 taxation;
21 The following table shall illustrate the computation of the tax
22 exemption:
23 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
24 Exemption
25 During Construction (maximum three years)[; 100%
26 except construction commenced between January
27 first, two thousand seven and June
28 thirtieth, two thousand nine (maximum
29 three years)]
30 Following completion of work
31 Year:
32 1 100%
33 2 100
34 3 80
35 4 80
36 5 60
37 6 60
38 7 40
39 8 40
40 9 20
41 10 20
42 S 13. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision
43 2 of section 421-a of the real property tax law, as amended by section
44 39 of part B of chapter 97 of the laws of 2011, is amended to read as
45 follows:
46 (A) Within a city having a population of one million or more the local
47 housing agency may adopt rules and regulations providing that except in
48 areas excluded by local law new multiple dwellings, except hotels, shall
49 be exempt from taxation for local purposes, other than assessments for
50 local improvements, for the tax year or years immediately following
51 taxable status dates occurring subsequent to the commencement and prior
52 to the completion of construction, but not to exceed three such tax
A. 10780 12
1 years, [except for new multiple dwellings the construction of which
2 commenced between January first, two thousand seven, and June thirtieth,
3 two thousand nine, shall have an additional thirty-six months to
4 complete construction and shall be eligible for full exemption from
5 taxation for the first three years of the period of construction; any
6 eligible project that seeks to utilize the six-year period of
7 construction authorized by this section must apply for a preliminary
8 certificate of eligibility within one year of the effective date of the
9 rent act of 2011, provided, however that such multiple dwellings shall
10 be eligible for a maximum of three years of benefits during the
11 construction period,] and shall continue to be exempt from such taxation
12 in tax years immediately following the taxable status date first occur-
13 ring after the expiration of the exemption herein conferred during such
14 construction so long as used at the completion of construction for
15 dwelling purposes for a period not to exceed fifteen years in the aggre-
16 gate, as follows:
17 a. except as otherwise provided herein there shall be full exemption
18 from taxation during the period of construction or the period of three
19 years immediately following commencement of construction, whichever
20 expires sooner, [except for new multiple dwellings the construction of
21 which commenced between January first, two thousand seven, and June
22 thirtieth, two thousand nine, shall have an additional thirty-six months
23 to complete construction and shall be eligible for full exemption from
24 taxation for the first three years of the period of construction; any
25 eligible project that seeks to utilize the six-year period of
26 construction authorized by this section must apply for a preliminary
27 certificate of eligibility within one year of the effective date of the
28 rent act of 2011, provided, however that such multiple dwellings shall
29 be eligible for a maximum of three years of benefits during the
30 construction period,] and for eleven years following such period;
31 b. followed by one year of exemption from eighty percent of such taxa-
32 tion;
33 c. followed by one year of exemption from sixty percent of such taxa-
34 tion;
35 d. followed by one year of exemption from forty percent of such taxa-
36 tion;
37 e. followed by one year of exemption from twenty percent of such taxa-
38 tion.
39 S 14. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
40 2 of section 421-a of the real property tax law, as amended by section
41 40 of part B of chapter 97 of the laws of 2011, is amended to read as
42 follows:
43 (A) Within a city having a population of one million or more the local
44 housing agency may adopt rules and regulations providing that new multi-
45 ple dwellings, except hotels, shall be exempt from taxation for local
46 purposes, other than assessments for local improvements, for the tax
47 year or years immediately following taxable status dates occurring
48 subsequent to the commencement and prior to the completion of
49 construction, but not to exceed three such tax years, [except for new
50 multiple dwellings the construction of which commenced between January
51 first, two thousand seven, and June thirtieth, two thousand nine, shall
52 have an additional thirty-six months to complete construction and shall
53 be eligible for full exemption from taxation for the first three years
54 of the period of construction; any eligible project that seeks to
55 utilize the six-year period of construction authorized by this section
56 must apply for a preliminary certificate of eligibility within one year
A. 10780 13
1 of the effective date of the rent act of 2011, provided, however that
2 such multiple dwellings shall be eligible for a maximum of three years
3 of benefits during the construction period,] and shall continue to be
4 exempt from such taxation in tax years immediately following the taxable
5 status date first occurring after the expiration of the exemption herein
6 conferred during such construction so long as used at the completion of
7 construction for dwelling purposes for a period not to exceed twenty-
8 five years in the aggregate, provided that the area in which the project
9 is situated is a neighborhood preservation program area as determined by
10 the local housing agency as of June first, nineteen hundred eighty-five,
11 or is a neighborhood preservation area as determined by the New York
12 city planning commission as of June first, nineteen hundred eighty-five,
13 or is an area that was eligible for mortgage insurance provided by the
14 rehabilitation mortgage insurance corporation as of May first, nineteen
15 hundred ninety-two or is an area receiving funding for a neighborhood
16 preservation project pursuant to the neighborhood reinvestment corpo-
17 ration act (42 U.S.C. SS180 et seq.) as of June first, nineteen hundred
18 eighty-five, as follows:
19 a. except as otherwise provided herein there shall be full exemption
20 from taxation during the period of construction or the period of three
21 years immediately following commencement of construction, whichever
22 expires sooner, [except for new multiple dwellings the construction of
23 which commenced between January first, two thousand seven, and June
24 thirtieth, two thousand nine, shall have an additional thirty-six months
25 to complete construction and shall be eligible for full exemption from
26 taxation for the first three years of the period of construction; any
27 eligible project that seeks to utilize the six-year period of
28 construction authorized by this section must apply for a preliminary
29 certificate of eligibility within one year of the effective date of the
30 rent act of 2011, provided, however that such multiple dwellings shall
31 be eligible for a maximum of three years of benefits during the
32 construction period,] and for twenty-one years following such period;
33 b. followed by one year of exemption from eighty percent of such taxa-
34 tion;
35 c. followed by one year of exemption from sixty percent of such taxa-
36 tion;
37 d. followed by one year of exemption from forty percent of such taxa-
38 tion;
39 e. followed by one year of exemption from twenty percent of such taxa-
40 tion.
41 S 15. Severability clause. If any clause, sentence, paragraph, subdi-
42 vision, section or subpart of this act shall be adjudged by any court of
43 competent jurisdiction to be invalid, such judgment shall not affect,
44 impair, or invalidate the remainder thereof, but shall be confined in
45 its operation to the clause, sentence, paragraph, subdivision, section
46 or subpart thereof directly involved in the controversy in which such
47 judgment shall have been rendered. It is hereby declared to be the
48 intent of the legislature that this act would have been enacted even if
49 such invalid provisions had not been included herein.
50 S 16. This act shall take effect immediately, provided, however that
51 section 26-405 of the city rent and rehabilitation law made by section
52 one of this act shall remain in full force and effect only so long as
53 the public emergency requiring the regulation and control of residential
54 rents and evictions continues, as provided in subdivision 3 of section 1
55 of the local emergency housing rent control act; and provided further
56 that the amendments to section 26-511 of chapter 4 of title 26 of the
A. 10780 14
1 administrative code of the city of New York made by section two of this
2 act shall expire on the same date as such law expires and shall not
3 affect the expiration of such law as provided under section 26-520 of
4 such law; and provided further that the amendment to section 6 of the
5 emergency tenant protection act of nineteen seventy-four made by section
6 three of this act shall expire on the same date as such act expires and
7 shall not affect the expiration of such act as provided in section 17 of
8 chapter 576 of the laws of 1974; and provided further that the amendment
9 to section 4 of the emergency housing rent control law made by section
10 four of this act shall expire on the same date as such law expires and
11 shall not affect the expiration of such law as provided in subdivision 2
12 of section 1 of chapter 274 of the laws of 1946; provided further, that
13 sections six, seven and eight of this act shall be deemed to have been
14 in full force and effect on and after December 31, 2011; provided that
15 the amendments made to section 489 of the real property tax law by
16 section eight of this act shall not be deemed to change the eligibility
17 for benefits, pursuant to such section and any local law or ordinance
18 providing for benefits pursuant to such section, as a result of conver-
19 sions, alterations or improvements completed before December 31, 2011;
20 provided, further, that the provisions of section nine of this act shall
21 be deemed to have been in full force and effect on and after July 1,
22 2010; provided further, that the provisions of section eleven of this
23 act shall be deemed to have been in full force and effect on and after
24 December 31, 2007; provided further, that the provisions of sections
25 twelve, thirteen and fourteen of this act shall be deemed to have been
26 in full force and effect on and after December 28, 2010; and provided
27 that, with respect to any application for a preliminary certificate of
28 eligibility that is filed no later than June 24, 2012, or that is filed
29 for a project that was the subject of mortgage foreclosure proceedings
30 or other lien enforcement litigation by a lender on or before June 24,
31 2012, such project shall be subject to that portion of the definition of
32 "commence" contained in item (1) of clause (iv) of subparagraph (2) of
33 paragraph (b) of subdivision (a) of section 6-09 of title twenty-eight
34 of the rules of the city of New York.
