S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10533--A
 
                           I N  A S S E M B L Y
 
                               May 28, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Hyndman,
   Perry) -- read once and referred to the  Committee  on  Real  Property
   Taxation  --  committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the real property tax law, in relation to clarifying the
   definition of "first building permit" for purposes of filing  require-
   ments  to  qualify for an abatement of tax payments for certain indus-
   trial and commercial properties located in a city of  one  million  or
   more persons
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1 and 2 and paragraph (a) of subdivision 5  of
 section 489-cccccc of the real property tax law, as added by chapter 119
 of the laws of 2008, subparagraph (ii) of paragraph (a) of subdivision 5
 as  amended  by  chapter 397 of the laws of 2017, are amended to read as
 follows:
   1. Time limit for meeting  minimum  required  expenditure.  Applicants
 must  meet  the  appropriate minimum required expenditure as provided in
 subdivision three of section four  hundred  eighty-nine-bbbbbb  of  this
 title  relating  to  the  abatement  for which such project qualifies as
 follows:
   (a) No later than four years from the date of issuance  of  the  first
 building  permit  THAT  ALLOWS  ACTUAL CONSTRUCTION WORK ON THE PROPOSED
 PROJECT, NOT MERELY SITE PREPARATION, TO COMMENCE, or if no  permit  was
 required, the commencement of construction.
   (b)  Mixed  use properties. Expenditures for construction work related
 to the common areas and systems of  such  property  shall  be  allocated
 under  rules  promulgated  by  the  department  between the residential,
 nonresidential and retail, if any, portions of the property.
   2. Time limit for completion of construction. Construction  of  build-
 ings  or  structures  for  which  benefits  have  been approved shall be
 completed no later than five years from the  date  of  issuance  of  the
 first  building  permit  THAT  ALLOWS  ACTUAL  CONSTRUCTION  WORK ON THE
 PROPOSED PROJECT, NOT MERELY SITE PREPARATION, TO  COMMENCE,  or  if  no
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16529-06-0

 A. 10533--A                         2
 
 permit  was required, the commencement of construction.  Failure to meet
 this requirement shall result in termination of any inflation protection
 provided under subdivision three of section  four  hundred  eighty-nine-
 bbbbbb  of this title for any tax year that begins following the date by
 which completion of construction is required under this paragraph.
   (a) Time to file. (i) Preliminary application.   (A) Building  permit.
 No benefits pursuant to this title shall be granted for any construction
 work unless the applicant filed a preliminary application for such bene-
 fits on or before the date of issuance of the first building permit THAT
 ALLOWS ACTUAL CONSTRUCTION WORK ON THE PROPOSED PROJECT, NOT MERELY SITE
 PREPARATION,  TO  COMMENCE for such work. This requirement may be satis-
 fied where the applicant's architect, contractor or other representative
 authorized to file the application for such building permit  files  with
 the  department  on  behalf  of  the applicant a preliminary application
 containing such information as the department shall prescribe by rule.
   (B) No building permit required.  Where  construction  work  does  not
 require  a building permit, a notarized letter from the project's archi-
 tect or engineer notifying the department of this fact  shall  be  filed
 within  thirty  calendar  days  of the commencement of construction.  In
 such circumstance, such letter shall also satisfy the requirement  of  a
 preliminary  application  if  the letter contains all of the information
 required for a preliminary application under  rules  prescribed  by  the
 department.
   (ii)  Final application. Applicants shall file a final application for
 benefits no later than one year from the date of issuance of  the  first
 building  permit [for construction work] THAT ALLOWS ACTUAL CONSTRUCTION
 WORK ON THE PROPOSED PROJECT, NOT MERELY SITE PREPARATION, TO  COMMENCE,
 or, where construction work does not require a building permit, no later
 than  one  year from the date of commencement of construction. Abatement
 benefits shall not be granted until the applicant files the final appli-
 cation. If the final application is not filed within such one year peri-
 od, abatement benefits shall not be granted until  such  application  is
 filed,  and  the  department may delay the granting of such benefits, at
 the department's discretion, to investigate  the  reason  for  the  late
 filing.
   §  2.  This  act  shall  take  effect  immediately  and shall apply to
 construction projects that:
   (i) were delayed as a result of environmental damage due to  Hurricane
 Sandy in the fall of 2012; and
   (ii)  for  which  a  decision  is under contested review by a court of
 competent jurisdiction or by the New York City Department of Finance.