S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7456
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 26, 2017
                                ___________
 
 Introduced by M. of A. TITONE -- read once and referred to the Committee
   on Real Property Taxation
 
 AN  ACT  to confirm eligibility for and direct the New York city depart-
   ment of finance to provide exemption from taxation of certain residen-
   tial dwelling units in the county of Richmond

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  1.  Notwithstanding  any  law,  rule or regulation to the
 contrary, where certificates of eligibility for moderate  rehabilitation
 with  enriched  benefits  were issued by the New York city department of
 housing preservation and development on July 28, 2000  and  January  30,
 2002  for alterations and improvements constructed between 1997 and 2000
 with regard to a group of eight class A multiple dwellings reflected  on
 three separate tax lots, comprised of eleven hundred or more residential
 rental  units  located  on  the same residential street in the county of
 Richmond, exclusively occupied by low income tenants receiving  benefits
 under  section  8 of the United States housing act of 1937 whose incomes
 do not exceed 50 percent of the area median income, which are subject to
 a 50-year use agreement pursuant to the United States low-income housing
 preservation and resident homeownership act of 1990  and  funded  by  at
 least  10  million dollars of federal subsidies, each such tax lot shall
 be exempt from taxation for local purposes for 34  years  under  section
 489  of  the real property tax law and section 11-243 of the administra-
 tive code of the city of New York.  The  New  York  city  department  of
 finance  is  hereby  directed  to  comply  with  the  provisions of this
 section.
   2. For tax lots  granted  benefits  under  this  section  pursuant  to
 certificates  of eligibility issued on July 28, 2000, exemption benefits
 shall be based upon all increases in the buildings  assessed  valuation,
 without  regard to whether such increases were the result of physical or
 equalization increases, as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11044-01-7

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   (a) beginning in tax year 2001-2002 and ending at  the  completion  of
 tax  year  2034-2035,  the  exemption benefit shall equal the difference
 between the building assessed value for  that  tax  year  and  tax  year
 1997-1998 multiplied by the then current overall class 2 tax rate;
   (b)  for  tax year 2035-2036, the exemption benefit shall equal eighty
 percent of the difference between the  then  current  building  assessed
 value  and  the building assessed value in tax year 2001-2002 multiplied
 by the then current class 2 tax rate;
   (c) for tax year 2036-2037, the exemption benefit  shall  equal  sixty
 percent  of  the  difference  between the then current building assessed
 value and the building assessed value in tax year  2001-2002  multiplied
 by the then current class 2 tax rate;
   (d)  for  tax  year 2037-2038, the exemption benefit shall equal forty
 percent of the difference between the  then  current  building  assessed
 value  and  the building assessed value in tax year 2001-2002 multiplied
 by the then current class 2 tax rate;
   (e) for tax year 2038-2039, the exemption benefit shall  equal  twenty
 percent  of  the  difference  between the then current building assessed
 value and the building assessed value in tax year  2001-2002  multiplied
 by the then current class 2 tax rate.
   3.  For  tax  lots  granted  benefits  under  this section pursuant to
 certificates of eligibility issued on January 30, 2002, exemption  bene-
 fits  shall  be based upon all increases in the buildings assessed valu-
 ation, without regard to whether such increases were the result of phys-
 ical or equalization increases, as follows:
   (a) beginning in tax year 2002-2003 and ending at  the  completion  of
 tax  year  2035-2036,  the  exemption benefit shall equal the difference
 between the building assessed value for  that  tax  year  and  tax  year
 1998-1999 multiplied by the then current overall class 2 tax rate;
   (b)  for  tax year 2036-2037, the exemption benefit shall equal eighty
 percent of the difference between the  then  current  building  assessed
 value  and  the building assessed value in tax year 2002-2003 multiplied
 by the then current class 2 tax rate;
   (c) for tax year 2037-2038, the exemption benefit  shall  equal  sixty
 percent  of  the  difference  between the then current building assessed
 value and the building assessed value in tax year  2002-2003  multiplied
 by the then current class 2 tax rate;
   (d)  for  tax  year 2038-2039, the exemption benefit shall equal forty
 percent of the difference between the  then  current  building  assessed
 value  and  the building assessed value in tax year 2002-2003 multiplied
 by the then current class 2 tax rate;
   (e) for tax year 2039-2040, the exemption benefit shall  equal  twenty
 percent  of  the  difference  between the then current building assessed
 value and the building assessed value in tax year  2002-2003  multiplied
 by the then current class 2 tax rate.
   4.  For  all  tax  years prior to the tax year in which this act takes
 effect, all exemption benefits created pursuant to subdivisions two  and
 three of this section shall result in the creation of credits. The total
 of  all  credits  for  tax years prior to the tax year in which this act
 takes effect shall be applied by the New York city department of finance
 to reduce taxes for the remainder of the benefit  period,  beginning  in
 the  first  tax  year  in  which  this act takes effect through tax year
 2039-2040.
   5. The New York city department of housing preservation  and  develop-
 ment  is  hereby  empowered  to  grant  an  extension  of  the period of
 completion for any project described in subdivision one of this section,

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 where construction commenced in 2011, if such  alterations  or  improve-
 ments  are completed within 96 months from commencement of construction;
 provided that such conversion, alterations or improvements shall in  any
 event be completed prior to December 31, 2019.
   § 2. This act shall take effect immediately.