Bill Text: NY S08133 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to the exemption of new multiple dwellings from taxation; establishes the affordable housing tax exemption program; defines terms of such program; outlines benefits, tax payments, limitations on benefits for non-residential space, concurrent exemptions or abatements, termination or revocation; makes related provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2016-06-13 - REFERRED TO RULES [S08133 Detail]
Download: New_York-2015-S08133-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8133 IN SENATE June 14, 2016 ___________ Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the real property tax law, in relation to exemption of new multiple dwellings from taxation; in relation to establishing the affordable housing tax exemption program; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivisions 16 and 16-a of section 421-a of the real prop- 2 erty tax law are REPEALED. 3 § 2. Paragraphs (a), (m) and (n) and subparagraph (i) of paragraph (f) 4 of subdivision 17 of section 421-a of the real property tax law, as 5 added by section 63-c of part A of chapter 20 of the laws of 2015, are 6 amended to read as follows: 7 (a) Definitions. For purposes of this subdivision: 8 (i) "Affordable housing eighty percent units" shall mean dwelling 9 units that: (A) are situated within the extended affordability property; 10 (B) upon initial rental and upon each subsequent rental following a 11 vacancy during the extended affordability period, are each affordable 12 and restricted to occupancy by individuals or families whose household 13 income does not exceed one hundred percent of the area median income, 14 adjusted for family size, at the time that such household initially 15 occupies such dwelling unit; and (C) upon initial rental and upon each 16 subsequent rental following a vacancy during the extended affordability 17 period, are collectively affordable and restricted to occupancy by indi- 18 viduals or families whose household income does not exceed an average of 19 eighty percent of the area median income, adjusted for family size, at 20 the time that such household initially occupies such dwelling unit. 21 (ii) "Affordable housing one hundred thirty percent units" shall mean 22 dwelling units that: (A) are situated within an extended affordability 23 property; and (B) upon initial rental and upon each subsequent rental 24 following a vacancy during the extended affordability period, are each 25 affordable and restricted to occupancy by individuals or families whose 26 household income does not exceed one hundred thirty percent of the area 27 median income, adjusted for family size, at the time that such household 28 initially occupies such dwelling unit. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15841-04-6S. 8133 2 1 (iii) "Affordable housing unit" shall mean, collectively and individ- 2 ually, affordable housing eighty percent units and affordable housing 3 one hundred thirty percent units. 4 (iv) "Agency" shall mean the department of housing preservation and 5 development. 6 (v) "Application" shall mean an application for extended benefits 7 pursuant to this subdivision. 8 (vi) "Building service employee" shall mean any person who is regular- 9 ly employed at, and performs work in connection with the care or mainte- 10 nance of, an extended affordability property, including, but not limited 11 to, a watchman, guard, doorman, building cleaner, porter, handyman, 12 janitor, gardener, groundskeeper, elevator operator and starter, and 13 window cleaner, but not including persons regularly scheduled to work 14 fewer than eight hours per week in the extended affordability property. 15 (vii) "Commencement date" shall mean the later of: (A) the expiration 16 date; or (B) the restrictive declaration date. 17 (viii) "Expiration date" shall mean the date upon which benefits 18 granted to a fifteen year benefit property, a twenty year benefit prop- 19 erty or twenty-five year benefit property pursuant to this section prior 20 to [the effective date of the chapter of the laws of two thousand21fifteen that added this subdivision] June twenty-sixth, two thousand 22 fifteen would expire. 23 (ix) "Extended affordability period" shall mean, notwithstanding any 24 earlier termination or revocation of the extended benefit, the period 25 commencing upon the commencement date and ending: (A) fifteen years 26 thereafter for a fifteen year benefit property and a twenty year benefit 27 property; and (B) ten years thereafter for a twenty-five year benefit 28 property. 29 (x) "Extended affordability property" shall mean a fifteen year bene- 30 fit property, a twenty year benefit property or a twenty-five year bene- 31 fit property that complies with the provisions of this subdivision. 32 (xi) "Extended affordability requirement" shall mean that, within any 33 extended affordability property: (A) not less than twenty percent of the 34 dwelling units are affordable housing eighty percent units; and (B) not 35 less than an additional five percent of the dwelling units are afforda- 36 ble housing one hundred thirty percent units. 37 (xii) "Extended benefit" shall mean, for any extended affordability 38 property, a fifty percent exemption from real property taxation, other 39 than assessments for local improvements, for the extended affordability 40 period. 41 (xiii) "Fifteen year benefit property" shall mean a multiple dwelling 42 that commenced construction prior to July first, two thousand eight and 43 that was granted benefits pursuant to this section prior to June twen- 44 ty-sixth, two thousand fifteen due to its compliance with the require- 45 ments of clause (C) of subparagraph (iii) of paragraph (a) of subdivi- 46 sion two of this section. 47 (xiv) "Fiscal officer" shall mean the comptroller or other analogous 48 officer in a city having a population of one million or more. 49 [(xiv)] (xv) "Floor area" shall mean the horizontal areas of the 50 several floors, or any portion thereof, of a dwelling or dwellings, and 51 accessory structures on a lot measured from the exterior faces of exte- 52 rior walls, or from the center line of party walls. 53 [(xv)] (xvi) "Multiple dwelling" shall have the meaning set forth in 54 the multiple dwelling law. 55 [(xvi)] (xvii) "Residential tax lot" shall mean a tax lot that 56 contains dwelling units.S. 8133 3 1 [(xvii)] (xviii) "Restrictive declaration" shall mean a document 2 executed by all parties in interest to the extended affordability prop- 3 erty which provides that, during the extended affordability period, the 4 extended affordability property shall comply with the extended afforda- 5 bility requirement. 6 [(xviii)] (xix) "Restrictive declaration date" shall mean the date 7 upon which the restrictive declaration is recorded against the extended 8 affordability property. 9 [(xix)] (xx) "Twenty year benefit property" shall mean a multiple 10 dwelling that commenced construction prior to July first, two thousand 11 eight and that was granted benefits pursuant to this section prior to 12 [the effective date of the chapter of the laws of two thousand fifteen13that added this subdivision] June twenty-sixth, two thousand fifteen due 14 to its compliance with the requirements of item b of clause (A) of 15 subparagraph (iv) of paragraph (a) of subdivision two of this section. 16 [(xx)] (xxi) "Twenty-five year benefit property" shall mean a multiple 17 dwelling that commenced construction prior to July first, two thousand 18 eight and that was granted benefits pursuant to this section prior to 19 [the effective date of the chapter of the laws of two thousand fifteen20that added this subdivision] June twenty-sixth, two thousand fifteen due 21 to its compliance with the requirements of item b of clause (D) of 22 subparagraph (iii) of paragraph (a) of subdivision two of this section. 23 (i) Notwithstanding the provisions of paragraph (f) of subdivision two 24 of this section, any local law for the stabilization of rents or the 25 emergency tenant protection act of nineteen seventy-four or any other 26 law relating to the control or stabilization of rents in the city of New 27 York, all affordable housing units in an extended affordability property 28 shall be fully subject to control under such local law or such act 29 during the extended affordability period, provided that tenants holding 30 a lease and in occupancy of such affordable housing units in an extended 31 affordability property at the expiration of the extended affordability 32 period shall have the right to remain as rent stabilized tenants for the 33 duration of their occupancy. Upon any vacancy of an affordable housing 34 unit after the extended affordability period, such affordable housing 35 unit shall remain fully subject to rent stabilization unless the owner 36 is entitled to remove such affordable housing unit from rent stabiliza- 37 tion upon such vacancy by reason of the monthly rent exceeding any limit 38 established thereunder. 39 (m) Applications. (i) [The application with respect to any extended40affordability property shall include a certification that: (A) the41restrictive declaration has been recorded against the extended afforda-42bility property; and (B) the extended affordability property is in43compliance with such restrictive declaration and this subdivision.44(ii) The application with respect to any extended affordability prop-45erty shall be filed with the agency on or before the later of: (A)46December thirty-first, two thousand sixteen; or (B) eighteen months47after the expiration date.] The owner of an extended affordability prop- 48 erty may file an application with the agency at any time on or before 49 the later of (A) December thirty-first, two thousand seventeen; or (B) 50 eighteen months after the expiration date. The application shall 51 consist of a certification that: (I) a restrictive declaration has been 52 recorded, or submitted for recordation, against the extended affordabil- 53 ity property; and (II) that the filing fee has been paid. Provided that 54 the application is filed as required by this subparagraph, the extended 55 affordability property shall be entitled to receive the extended benefitS. 8133 4 1 as provided by this subdivision under the terms of this subdivision as 2 shall be in effect on the date of filing. 3 (ii) The owner of an extended affordability property that filed an 4 application prior to the expiration of the expiration date shall, not 5 later than thirty days after the expiration date, file with the agency a 6 certification that the extended affordability property is in compliance 7 with such restrictive declaration and this subdivision. 8 (iii) Notwithstanding the provisions of any general, special or local 9 law to the contrary, the agency may require by rule that applications be 10 filed electronically. 11 (iv) The agency may rely on certification by an architect or engineer 12 submitted by an applicant in connection with [the filing of an applica-13tion] a portion of the certification required by subparagraph (ii) of 14 this paragraph. A false certification by such architect or engineer 15 shall be deemed to be professional misconduct pursuant to section 16 sixty-five hundred nine of the education law. Any licensee found guilty 17 of such misconduct under the procedures prescribed in section sixty-five 18 hundred ten of the education law shall be subject to the penalties 19 prescribed in section sixty-five hundred eleven of the education law, 20 and shall thereafter be ineligible to submit a certification pursuant to 21 this subdivision. 22 (n) Filing fee. The agency may require a filing fee of three thousand 23 dollars per [dwelling unit] affordable housing unit in connection with 24 any application. 25 § 3. Paragraph (p) of subdivision 17 of section 421-a of the real 26 property tax law is REPEALED. 27 § 4. The real property tax law is amended by adding a new section 28 421-aa to read as follows: 29 § 421-aa. Affordable housing tax exemption program. 1. Definitions. 30 For the purposes of this section: 31 (a) "421-aa benefits" shall mean exemption from real property taxation 32 pursuant to this section. 33 (b) "Affordability option A" shall mean that, within any eligible 34 site: (i) not less than ten percent of the dwelling units are affordable 35 housing forty percent units; (ii) not less than an additional ten 36 percent of the dwelling units are affordable housing sixty percent 37 units; and (iii) not less than an additional five percent of the dwell- 38 ing units are affordable housing one hundred thirty percent units. 39 (c) "Affordability option B" shall mean that, within any eligible 40 site, (i) not less than ten percent of the dwelling units are affordable 41 housing seventy percent units, and (ii) not less than an additional 42 twenty percent of the dwelling units are affordable housing one hundred 43 thirty percent units. 44 (d) "Affordability option C" shall mean that, within any eligible site 45 excluding the geographic area south of ninety-sixth street in the 46 borough of Manhattan, and all other geographic areas in the city of New 47 York excluded pursuant to local law, (i) not less than thirty percent of 48 the dwelling units are affordable housing one hundred thirty percent 49 units, and (ii) such eligible site is developed without the substantial 50 assistance of grants, loans or subsidies provided by a federal, state or 51 local governmental agency or instrumentality pursuant to a program for 52 the development of affordable housing. 53 (e) "Affordability option D" shall only apply to a homeownership 54 project, of which fifty percent of the units shall have an average 55 assessed value not to exceed seventy-five thousand dollars upon the 56 first assessment following the completion date and where each owner ofS. 8133 5 1 any such unit shall agree, in writing, to maintain such unit as their 2 primary residence for no less than five years from the acquisition of 3 such unit. 4 (f) "Affordability percentage" shall mean a fraction, the numerator of 5 which is the number of affordable housing units in an eligible site and 6 the denominator of which is the total number of dwelling units in such 7 eligible site. 8 (g) "Affordable housing forty percent unit" shall mean a dwelling unit 9 that: (i) is situated within the eligible site for which 421-aa benefits 10 are granted; and (ii) upon initial rental and upon each subsequent 11 rental following a vacancy during the restriction period, is affordable 12 to and restricted to occupancy by individuals or families whose house- 13 hold income does not exceed forty percent of the area median income, 14 adjusted for family size, at the time that such household initially 15 occupies such dwelling unit. 16 (h) "Affordable housing sixty percent unit" shall mean a dwelling unit 17 that: (i) is situated within the eligible site for which 421-aa benefits 18 are granted; and (ii) upon initial rental and upon each subsequent 19 rental following a vacancy during the restriction period, is affordable 20 to and restricted to occupancy by individuals or families whose house- 21 hold income does not exceed sixty percent of the area median income, 22 adjusted for family size, at the time that such household initially 23 occupies such dwelling unit. 24 (i) "Affordable housing seventy percent unit" shall mean a dwelling 25 unit that: (i) is situated within the eligible site for which 421-aa 26 benefits are granted; and (ii) upon initial rental and upon each subse- 27 quent rental following a vacancy during the restriction period, is 28 affordable to and restricted to occupancy by individuals or families 29 whose household income does not exceed seventy percent of the area medi- 30 an income, adjusted for family size, at the time that such household 31 initially occupies such dwelling unit. 32 (j) "Affordable housing one hundred thirty percent unit" shall mean a 33 dwelling unit that: (i) is situated within the eligible site for which 34 421-aa benefits are granted; and (ii) upon initial rental and upon each 35 subsequent rental following a vacancy during the restriction period, is 36 affordable to and restricted to occupancy by individuals or families 37 whose household income does not exceed one hundred thirty percent of the 38 area median income, adjusted for family size, at the time that such 39 household initially occupies such dwelling unit. 40 (k) "Affordable housing unit" shall mean, collectively and individual- 41 ly, affordable housing forty percent units, affordable housing sixty 42 percent units, affordable housing seventy percent units, and affordable 43 housing one hundred thirty percent units. 44 (l) "Agency" shall mean the department of housing preservation and 45 development. 46 (m) "Application" shall mean an application for 421-aa benefits. 47 (n) "Building service employee" shall mean any person who is regularly 48 employed at, and performs work in connection with the care or mainte- 49 nance of, an eligible site, including, but not limited to, a watchman, 50 guard, doorman, building cleaner, porter, handyman, janitor, gardener, 51 groundskeeper, elevator operator and starter, and window cleaner, but 52 not including persons regularly scheduled to work fewer than eight hours 53 per week at the eligible site. 54 (o) "Commencement date" shall mean, with respect to any eligible 55 multiple dwelling, the date upon which excavation and construction of 56 initial footings and foundations lawfully begins in good faith or, forS. 8133 6 1 an eligible conversion, the date upon which the actual construction of 2 the conversion, alteration or improvement of the pre-existing building 3 or structure lawfully begins in good faith. 4 (p) "Completion date" shall mean the date upon which the local depart- 5 ment of buildings issues the first temporary or permanent certificate of 6 occupancy covering all residential areas of an eligible multiple dwell- 7 ing. 8 (q) "Construction period" shall mean, with respect to any eligible 9 multiple dwelling, a period: (i) beginning on the later of the commence- 10 ment date of such eligible multiple dwelling or three years before the 11 completion date of such eligible multiple dwelling; and (ii) ending on 12 the day preceding the completion date of such eligible multiple dwell- 13 ing. 14 (r) "Construction worker" shall mean any person performing 15 construction work on an eligible site. 16 (s) "Construction work" shall mean work carried out in connection with 17 the initial construction of an eligible multiple dwelling, provided that 18 any work performed prior to the commencement of construction or after 19 completion of construction shall not be considered construction work. 20 (t) "Eligible conversion" shall mean the conversion, alteration or 21 improvement of a pre-existing building or structure resulting in a 22 multiple dwelling in which no more than forty-nine percent of the floor 23 area consists of such pre-existing building or structure. 24 (u) "Eligible multiple dwelling" shall mean a multiple dwelling 25 containing six or more dwelling units created through new construction 26 or eligible conversion for which the commencement date is after December 27 thirty-first, two thousand fifteen and on or before June fifteenth, two 28 thousand twenty-one, and for which the completion date is on or before 29 December thirty-first, two thousand twenty-five. 30 (v) "Eligible site" shall mean either: (A) a tax lot containing an 31 eligible multiple dwelling; or (B) a zoning lot containing two or more 32 eligible multiple dwellings that are part of a single application. 33 (w) "Fiscal officer" shall mean the comptroller or other analogous 34 officer in a city having a population of one million or more. 35 (x) "Floor area" shall mean the horizontal areas of the several 36 floors, or any portion thereof, of a dwelling or dwellings, and accesso- 37 ry structures on a lot measured from the exterior faces of exterior 38 walls, or from the center line of party walls. 39 (y) "Four percent tax credits" shall mean federal low income housing 40 tax credits computed in accordance with clause (ii) of subparagraph (B) 41 of paragraph (1) of subsection (b) of section forty-two of the internal 42 revenue code of nineteen hundred eighty-six, as amended. 43 (z) "Homeownership project" shall mean a multiple dwelling or portion 44 thereof operated as condominium or cooperative housing however, it shall 45 not include a multiple dwelling or portion thereof operated as cooper- 46 ative or condominium housing located within the borough of Manhattan, 47 and shall not include a multiple dwelling that contains more than thir- 48 ty-five units. 49 (aa) "Market unit" shall mean a dwelling unit in an eligible multiple 50 dwelling other than an affordable housing unit. 51 (bb) "Multiple dwelling" shall have the meaning set forth in the 52 multiple dwelling law. 53 (cc) "Non-residential tax lot" shall mean a tax lot that does not 54 contain any dwelling units. 55 (dd) "Rent stabilization" shall mean, collectively, the rent stabili- 56 zation law of nineteen hundred sixty-nine, the rent stabilization code,S. 8133 7 1 and the emergency tenant protection act of nineteen seventy-four, all as 2 in effect as of the effective date of the chapter of the laws of two 3 thousand sixteen that added this subdivision or as amended thereafter, 4 together with any successor statutes or regulations addressing substan- 5 tially the same subject matter. 6 (ee) "Rental project" shall mean an eligible site in which all dwell- 7 ing units included in any application are operated as rental housing. 8 (ff) "Residential tax lot" shall mean a tax lot that contains dwelling 9 units. 10 (gg) "Restriction period" shall mean, for a rental project, a period 11 commencing on the completion date and expiring on the thirty-fifth anni- 12 versary of the completion date, notwithstanding any earlier termination 13 or revocation of 421-aa benefits and for a homeownership, a period 14 commencing on the completion date and expiring on the twentieth anniver- 15 sary of the completion date, notwithstanding any earlier termination or 16 revocation of 421-aa benefits. 17 (hh) "Tax exempt bond proceeds" shall mean the proceeds of an exempt 18 facility bond, as defined in paragraph seven of subsection (a) of 19 section one hundred forty-two of the internal revenue code of nineteen 20 hundred eighty-six, as amended, the interest upon which is exempt from 21 taxation under section one hundred three of the internal revenue code of 22 nineteen hundred eighty-six, as amended. 23 (ii) "Thirty-five year benefit" shall mean: (i) for the construction 24 period, a one hundred percent exemption from real property taxation, 25 other than assessments for local improvements; (ii) for the first twen- 26 ty-five years of the restriction period, a one hundred percent exemption 27 from real property taxation, other than assessments for local improve- 28 ments; and (iii) for the final ten years of the restriction period, an 29 exemption from real property taxation, other than assessments for local 30 improvements, equal to the affordability percentage. 31 (jj) "Twenty year benefit" shall mean: (A) for the construction peri- 32 od, a one hundred percent exemption from real property taxation, other 33 than assessments for local improvements; (B) for the first fourteen 34 years of the restriction period, a one hundred percent exemption from 35 real property taxation, other than assessments for local improvements, 36 provided, however, that no exemption shall be given for any portion of a 37 unit's assessed value that exceeds sixty-five thousand dollars; and (C) 38 for the final six years of the restriction period, a twenty-five percent 39 exemption from real property taxation, other than assessments for local 40 improvements, provided, however, that no exemption shall be given for 41 any portion of a unit's assessed value that exceeds sixty-five thousand 42 dollars. 43 2. Benefit. In cities having a population of one million or more, 44 notwithstanding the provisions of any other subdivision of this section 45 or of any general, special or local law to the contrary, new eligible 46 sites, except hotels, that comply with the provisions of this section 47 shall be exempt from real property taxation, other than assessments for 48 local improvements, in the amounts and for the periods specified in this 49 subdivision. A rental project that meets all of the requirements of this 50 section shall receive a thirty-five year benefit and a homeownership 51 project that meets all of the requirements of this subdivision shall 52 receive a twenty year benefit. 53 3. Tax payments. In addition to any other amounts payable pursuant to 54 this section, the owner of any eligible site receiving 421-aa benefits 55 shall pay, in each tax year in which such 421-aa benefits are in effect, 56 real property taxes and assessments as follows:S. 8133 8 1 (a) with respect to each eligible multiple dwelling constructed on 2 such eligible site, real property taxes on the assessed valuation of 3 such land and any improvements thereon in effect during the tax year 4 prior to the commencement date of such eligible multiple dwelling, with- 5 out regard to any exemption from or abatement of real property taxation 6 in effect during such tax year, which real property taxes shall be 7 calculated using the tax rate in effect at the time such taxes are due; 8 and 9 (b) all assessments for local improvements. 10 4. Limitation on benefits for non-residential space. If the aggregate 11 floor area of commercial, community facility and accessory use space in 12 an eligible site, other than parking which is located not more than 13 twenty-three feet above the curb level, exceeds twelve percent of the 14 aggregate floor area in such eligible site, any 421-aa benefits shall be 15 reduced by a percentage equal to such excess. If an eligible site 16 contains multiple tax lots, the tax arising out of such reduction in 17 421-aa benefits shall first be apportioned pro rata among any non-resi- 18 dential tax lots. After any such non-residential tax lots are fully 19 taxable, the remainder of the tax arising out of such reduction in 421- 20 aa benefits, if any, shall be apportioned pro rata among the remaining 21 residential tax lots. 22 5. Calculation of benefit. Based on the certification of the agency 23 certifying the applicant's eligibility for 421-aa benefits, the asses- 24 sors shall certify to the collecting officer the amount of taxes to be 25 exempted. 26 6. Affordability requirements. During the restriction period, a rental 27 project shall comply with either affordability option A, affordability 28 option B, or affordability option C or for purposes of a homeownership 29 project, such project shall comply with affordability option D. Such 30 election shall be made in the application and shall not thereafter be 31 changed. The rental project shall also comply with all provisions of 32 this subdivision during the restriction period and with paragraph (c) of 33 this subdivision both during and after the restriction period to the 34 extent provided in such paragraph. 35 (a) Affordable units shall share the same common entrances and common 36 areas as market rate units, and shall not be isolated to a specific 37 floor or area of a building; provided, however, that units owned and 38 operated as condominium or cooperative housing may be provided with a 39 separate entrance and with separate common areas. Common entrances shall 40 mean any area regularly used by any resident for ingress and egress from 41 a multiple dwelling; and 42 (b) Unless preempted by the requirements of a federal, state or local 43 housing program, either: (i) the affordable housing units in a rental 44 project shall have a unit mix proportional to the market units; or (ii) 45 at least fifty percent of the affordable housing units in an eligible 46 site shall have two or more bedrooms and no more than twenty-five 47 percent of the affordable housing units shall have less than one 48 bedroom. 49 (c) Notwithstanding any provision of rent stabilization to the contra- 50 ry, all affordable housing units shall be fully subject to rent stabili- 51 zation during the restriction period, provided that tenants holding a 52 lease and in occupancy of such affordable housing units at the expira- 53 tion of the restriction period shall have the right to remain as rent 54 stabilized tenants for the duration of their occupancy. 55 (d) All rent stabilization registrations required to be filed pursuant 56 to paragraph (c) of this subdivision shall contain a designation thatS. 8133 9 1 specifically identifies affordable housing units created pursuant to 2 this subdivision as "421-aa affordable housing units" and shall contain 3 an explanation of the requirements that apply to all such affordable 4 housing units. 5 (e) Failure to comply with the provisions of this subdivision that 6 require the creation, maintenance, rent stabilization compliance and 7 occupancy of affordable housing units shall result in revocation of any 8 421-aa benefits for the period of such non-compliance or for purposes of 9 a homeownership project the failure to comply with affordability option 10 D shall result in revocation of any 421-aa benefits for the period of 11 such non-compliance. 12 (f) Nothing in this section shall: (i) prohibit the occupancy of an 13 affordable housing unit by individuals or families whose income at any 14 time is less than the maximum percentage of the area median income, 15 adjusted for family size, specified for such affordable housing unit 16 pursuant to this subdivision; or (ii) prohibit the owner of an eligible 17 site from requiring, upon initial rental or upon any rental following a 18 vacancy, the occupancy of any affordable housing unit by such lower 19 income individuals or families. 20 (g) Following issuance of a temporary certificate of occupancy and 21 upon each vacancy thereafter, an affordable housing unit shall promptly 22 be offered for rental by individuals or families whose income does not 23 exceed the maximum percentage of the area median income, adjusted for 24 family size, specified for such affordable housing unit pursuant to this 25 subdivision and who intend to occupy such affordable housing unit as 26 their primary residence. An affordable housing unit shall not be: (i) 27 rented to a corporation, partnership or other entity; or (ii) held off 28 the market for a period longer than is reasonably necessary to perform 29 repairs needed to make such affordable housing unit available for occu- 30 pancy. 31 (h) An affordable housing unit shall not be rented on a temporary, 32 transient or short-term basis. Every lease and renewal thereof for an 33 affordable housing unit shall be for a term of one or two years, at the 34 option of the tenant. 35 (i) An affordable housing unit shall not be converted to cooperative 36 or condominium ownership. 37 (j) The agency may establish by rule such requirements as the agency 38 deems necessary or appropriate for: (i) the marketing of affordable 39 housing units, both upon initial occupancy and upon any vacancy; (ii) 40 monitoring compliance with the provisions of this paragraph; and (iii) 41 the marketing and monitoring of any homeownership project that is grant- 42 ed an exemption pursuant to this subdivision. Such requirements may 43 include, but need not be limited to, retaining a monitor approved by the 44 agency and paid for by the owner. 45 (k) Notwithstanding any provision of this section to the contrary, 46 upon initial occupancy and each subsequent re-rental, a market unit 47 shall be subject to rent stabilization unless, in the absence of 421-aa 48 benefits, the owner would be entitled to remove such market unit from 49 rent stabilization upon vacancy by reason of the monthly rent exceeding 50 any limit established thereunder. 51 7. Building service employees. (a) For the purposes of this subdivi- 52 sion, "applicant" shall mean an applicant for 421-aa benefits, any 53 successor to such applicant, or any employer of building service employ- 54 ees for such applicant, including, but not limited to, a property 55 management company or contractor.S. 8133 10 1 (b) All building service employees employed by the applicant at the 2 eligible site shall receive the applicable prevailing wage for the 3 entire restriction period. 4 (c) The fiscal officer shall have the power to enforce the provisions 5 of this subdivision. In enforcing such provisions, the fiscal officer 6 shall have the power: 7 (i) to investigate or cause an investigation to be made to determine 8 the prevailing wages for building service employees; in making such 9 investigation, the fiscal officer may utilize wage and fringe benefit 10 data from various sources, including, but not limited to, data and 11 determinations of federal, state or other governmental agencies; 12 (ii) to institute and conduct inspections at the site of the work or 13 elsewhere; 14 (iii) to examine the books, documents and records pertaining to the 15 wages paid to, and the hours of work performed by, building service 16 employees; 17 (iv) to hold hearings and, in connection therewith, to issue subpoe- 18 nas, administer oaths and examine witnesses; the enforcement of a 19 subpoena issued under this paragraph shall be regulated by the civil 20 practice law and rules; 21 (v) to make a classification by craft, trade or other generally recog- 22 nized occupational category of the building service employees and to 23 determine whether such work has been performed by the building service 24 employees in such classification; 25 (vi) to require the applicant to file with the fiscal officer a record 26 of the wages actually paid by such applicant to the building service 27 employees and of their hours of work; 28 (vii) to delegate any of the foregoing powers to his or her deputy or 29 other authorized representative; and 30 (viii) to promulgate rules as he or she shall consider necessary for 31 the proper execution of the duties, responsibilities and powers 32 conferred upon him or her by the provisions of this paragraph. 33 (ix) If the fiscal officer finds that the applicant has failed to 34 comply with the provisions of this paragraph, he or she shall present 35 evidence of such noncompliance to the agency. 36 (d) Paragraph (b) of this subdivision shall not be applicable to: 37 (i) an eligible multiple dwelling containing less than thirty dwelling 38 units; or 39 (ii) an eligible multiple dwelling in which all of the dwelling units 40 are affordable housing units and not less than fifty percent of such 41 affordable housing units, upon initial rental and upon each subsequent 42 rental following a vacancy during the restriction period, are affordable 43 to and restricted to occupancy by individuals or families whose house- 44 hold income does not exceed one hundred twenty-five percent of the area 45 median income, adjusted for family size, at the time that such household 46 initially occupies such dwelling unit. 47 8. Construction workers. (a) All construction workers shall be paid, 48 an hourly compensation package that is no less than the sum of the 49 affordable housing wage rate and the health benefits supplement rate for 50 each work hour worked. As of the effective date of this chapter, the 51 affordable housing wage rate shall be fifteen dollars per hour and the 52 health benefits supplement rate shall be one dollar and fifty cents per 53 hour. The portion of the hourly compensation package consisting of the 54 health benefits supplement rate may be provided in the form of cash 55 wages, health benefits or any combination of the two. The value of any 56 health benefits received shall be determined based on the prorated hour-S. 8133 11 1 ly cost to the employer of the health benefits received by the employee. 2 Effective January first, two thousand seventeen, the affordable housing 3 wage rate shall be increased to sixteen dollars and fifty cents. Effec- 4 tive January first, two thousand eighteen, the affordable housing wage 5 rate shall be increased to eighteen dollars. Effective January first, 6 two thousand nineteen, the affordable housing wage rate shall be 7 increased to nineteen dollars and fifty cents. Effective January first, 8 two thousand twenty, the affordable housing wage rate shall be increased 9 to twenty-one dollars. 10 (b) For eligible sites located in the borough of Manhattan south of 11 ninety-sixth street which contain more than three hundred dwelling 12 units, construction workers in the aggregate shall be paid an average 13 hourly wage, inclusive of fringe benefits, of no less than fifty-five 14 dollars per hour. The preceding requirement shall not be applicable to 15 an eligible multiple dwelling in which at least fifty percent of the 16 dwelling units are, upon initial rental and upon each subsequent rental 17 following a vacancy during the restriction period, affordable to and 18 restricted to occupancy by individuals or families whose household 19 income does not exceed one hundred twenty-five percent of the area medi- 20 an income, adjusted for family size. 21 (c) The fiscal officer shall have the power to enforce the provisions 22 of this subdivision. In enforcing such provisions, the fiscal officer 23 shall have the power: 24 (i) to institute and conduct inspections at the site of the work or 25 elsewhere; 26 (ii) to examine the books, documents and records pertaining to the 27 wages paid to, and the hours of work performed by, construction workers; 28 (iii) to hold hearings and, in connection therewith, to issue subpoe- 29 nas, administer oaths and examine witnesses; the enforcement of a 30 subpoena issued under this subdivision shall be regulated by the civil 31 practice law and rules; 32 (iv) to require the applicant to file with the fiscal officer a record 33 of the wages actually paid by such applicant to the construction workers 34 and of their hours of work; 35 (v) to delegate any of the foregoing powers to his or her deputy or 36 other authorized representative; and 37 (vi) to promulgate rules as he or she shall consider necessary for the 38 proper execution of the duties, responsibilities and powers conferred 39 upon him or her by the provisions of this paragraph. 40 (d) If the fiscal officer finds that the applicant has failed to 41 comply with the provisions of this subdivision, he or she shall present 42 evidence of such noncompliance to the agency. 43 9. Replacement ratio. If the land on which an eligible site is located 44 contained any dwelling units three years prior to the commencement date 45 of the first eligible multiple dwelling thereon, then such eligible site 46 shall contain at least one affordable housing unit for each dwelling 47 unit that existed on such date and was thereafter demolished, removed or 48 reconfigured. 49 10. Concurrent exemptions or abatements. An eligible multiple dwelling 50 receiving 421-aa benefits shall not receive any exemption from or abate- 51 ment of real property taxation under any other law. 52 11. Voluntary renunciation or termination. Notwithstanding the 53 provisions of any general, special or local law to the contrary, an 54 owner shall not be entitled to voluntarily renounce or terminate any 55 421-aa benefits unless the agency authorizes such renunciation or termi- 56 nation in connection with the commencement of a new tax exemption pursu-S. 8133 12 1 ant to either the private housing finance law or section four hundred 2 twenty-c of this title. 3 12. Termination or revocation. The agency may terminate or revoke 4 421-aa benefits for noncompliance with this section. If 421-aa benefits 5 are terminated or revoked for noncompliance with this section, all of 6 the affordable housing units shall remain subject to rent stabilization 7 or for a homeownership project such project shall continue to comply 8 with affordability option D of this subdivision and all other require- 9 ments of this section for the restriction period and any additional 10 period expressly provided in this section, as if the 421-aa benefits had 11 not been terminated or revoked. 12 13. Powers cumulative. The enforcement provisions of this section 13 shall not be exclusive, and are in addition to any other rights, reme- 14 dies, or enforcement powers set forth in any other law or available at 15 law or in equity. 16 14. Multiple tax lots. If an eligible site contains multiple tax lots, 17 an application may be submitted with respect to one or more of such tax 18 lots. The agency shall determine eligibility for 421-aa benefits based 19 upon the tax lots included in such application and benefits for each 20 multiple dwelling shall commence upon commencement of construction of 21 such multiple dwelling and satisfaction of the requirements of subdivi- 22 sion six of this section. 23 15. Applications. (a) The application with respect to any eligible 24 multiple dwelling shall be filed with the agency not later than one year 25 after the completion date of such eligible multiple dwelling. 26 (b) Notwithstanding the provisions of any general, special or local 27 law to the contrary, the agency may require by rule that applications be 28 filed electronically. 29 (c) The agency may rely on certification by an architect or engineer 30 submitted by an applicant in connection with the filing of an applica- 31 tion. A false certification by such architect or engineer shall be 32 deemed to be professional misconduct pursuant to section sixty-five 33 hundred nine of the education law. Any licensee found guilty of such 34 misconduct under the procedures prescribed in section sixty-five hundred 35 ten of the education law shall be subject to the penalties prescribed in 36 section sixty-five hundred eleven of the education law, and shall there- 37 after be ineligible to submit a certification pursuant to this section. 38 16. Filing fee. The agency may require a filing fee of three thousand 39 dollars per dwelling unit in connection with any application. However, 40 the agency may promulgate rules imposing a lesser fee for eligible sites 41 containing eligible multiple dwellings constructed with the substantial 42 assistance of grants, loans or subsidies provided by a federal, state or 43 local governmental agency or instrumentality pursuant to a program for 44 the development of affordable housing. 45 17. Rules. The agency may promulgate any necessary rules to carry out 46 the provisions of this section. 47 18. Election. Notwithstanding anything in this section to the contra- 48 ry, a rental project or homeownership project with a commencement date 49 on or before December thirty-first, two thousand fifteen that has not 50 received benefits pursuant to section 421-a of the real property tax law 51 may elect to comply with this section and receive 421-aa benefits pursu- 52 ant to this section. 53 § 5. Paragraph (c) of subdivision 13 of section 421-a of the real 54 property tax law, as added by chapter 15 of the laws of 2008, is amended 55 to read as follows:S. 8133 13 1 (c) With respect to any multiple dwelling in a UDC Large Scale Project 2 that meets the requirements of paragraph (c) of subdivision seven of 3 this section, the period of tax benefits awarded to such multiple dwell- 4 ing shall be the same as the period of tax benefits awarded under clause 5 (A) of subparagraph (iii) of paragraph (a) of subdivision two of this 6 section. With respect to any multiple dwelling in a UDC Large Scale 7 Project that does not meet the requirements of paragraph (c) of subdivi- 8 sion seven of this section, the period of tax benefits awarded to such 9 multiple dwelling shall be the same as the period of tax benefits 10 awarded under clause (A) of subparagraph (ii) of paragraph (a) of subdi- 11 vision two of this section and the provisions of subdivision nine of 12 this section shall not apply. The tax benefits awarded to any multiple 13 dwelling in a UDC Large Scale Project shall commence upon the commence- 14 ment of construction of such multiple dwelling, provided, however, that 15 such multiple dwelling meets all of the requirements for tax benefits 16 pursuant to this section. For each successive fifteen hundred units of a 17 UDC Large Scale Project, the local housing agency must certify the 18 completion of any affordable units, as defined in subparagraph (i) of 19 paragraph (a) of subdivision seven of this section, required to qualify 20 any multiple dwelling or multiple dwellings comprising such fifteen 21 hundred units for any tax benefits awarded pursuant to this paragraph. 22 The existence of such special certification requirement and its finan- 23 cial impact upon all units, including, but not limited to, revocation of 24 tax benefits awarded pursuant to this paragraph if such special certif- 25 ication requirement is not met, shall be disclosed as a special risk in 26 any offering plan for any units in a UDC Large Scale Project. 27 § 6. Subdivision 13 of section 421-a of the real property tax law is 28 amended by adding two new paragraphs (e) and (f) to read as follows: 29 (e) "Commencement date" shall mean, with respect to any building in a 30 UDC Large Scale Project and notwithstanding any local law to the contra- 31 ry, the date upon which excavation and construction of initial footings 32 and foundations lawfully begins in good faith or, for an eligible 33 conversion, the date upon which the actual construction of the conver- 34 sion, alteration or improvement of the pre-existing building or struc- 35 ture lawfully begins in good faith. 36 (f) All multiple dwellings in a UDC Large Scale Project shall be 37 eligible for exemption from taxation pursuant to paragraph (c) of this 38 subdivision and to the extent permitted by this section, provided that: 39 (i) any multiple dwelling in a UDC Large Scale Project has a commence- 40 ment date on or before December thirty-first, two thousand fifteen; and 41 (ii) any multiple dwelling with a commencement date subsequent to Decem- 42 ber thirty-first, two thousand fifteen receives its first temporary or 43 permanent certificate of occupancy covering all residential areas on or 44 before December thirty-first, two thousand thirty-five. 45 § 7. Severability clause. If any clause, sentence, paragraph, subdivi- 46 sion, section or part of this act shall be adjudged by any court of 47 competent jurisdiction to be invalid, such judgment shall not affect, 48 impair, or invalidate the remainder thereof, but shall be confined in 49 its operation to the clause, sentence, paragraph, subdivision, section 50 or part thereof directly involved in the controversy in which such judg- 51 ment shall have been rendered. It is hereby declared to be the intent of 52 the legislature that this act would have been enacted even if such 53 invalid provisions had not been included herein. 54 § 8. This act shall take effect immediately and be deemed to have been 55 in full force and effect on and after January 1, 2016.
