S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10456
 
                           I N  A S S E M B L Y
 
                               May 25, 2022
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Braunstein)
   -- read once and referred to the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to authorizing  a
   tax  exemption and a tax abatement for alterations and improvements to
   multiple dwellings for purposes of preserving habitability in afforda-
   ble housing

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  489  of  the real property tax law is amended by
 adding a new subdivision 21 to read as follows:
   21. AFFORDABLE HOUSING REHABILITATION PROGRAM.   (A) DEFINITIONS.  FOR
 THE PURPOSES OF THIS SUBDIVISION:
   (1) "AFFORDABLE RENT" SHALL MEAN THE MAXIMUM RENT WITHIN THE MARKETING
 BAND  THAT  IS  ALLOWED  FOR  AN  AFFORDABLE RENTAL UNIT AS SUCH RENT IS
 ESTABLISHED BY THE LOCAL HOUSING AGENCY.
   (2) "AFFORDABLE RENTAL UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE
 RENTAL BUILDING THAT:
   (A) IS AFFORDABLE TO INDIVIDUALS OR FAMILIES  WHOSE  HOUSEHOLD  INCOME
 DOES  NOT  EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR
 FAMILY SIZE; AND
   (B) UPON  EACH  SUBSEQUENT  RENTAL  FOLLOWING  A  VACANCY  DURING  THE
 RESTRICTION PERIOD, IS RENTED AT OR BELOW THE APPLICABLE AFFORDABLE RENT
 AND  OCCUPIED BY AN INDIVIDUAL OR FAMILY WHOSE HOUSEHOLD INCOME DOES NOT
 EXCEED EIGHTY PERCENT OF THE AREA MEDIAN  INCOME,  ADJUSTED  FOR  FAMILY
 SIZE,  AT  THE TIME THAT SUCH HOUSEHOLD INITIALLY OCCUPIES SUCH DWELLING
 UNIT, PROVIDED THAT NOTHING IN THIS SUBDIVISION SHALL PROHIBIT OCCUPANCY
 BY INDIVIDUALS OR FAMILIES WHOSE HOUSEHOLD INCOME IS  LESS  THAN  EIGHTY
 PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, NOR PROHIB-
 IT  THE  OWNER  FROM REQUIRING OCCUPANCY BY INDIVIDUALS OR FAMILIES WITH
 SUCH LOWER HOUSEHOLD INCOME.
   (3) "CERTIFICATE OF ELIGIBILITY AND  REASONABLE  COST"  SHALL  MEAN  A
 DOCUMENT  ISSUED  BY  THE  LOCAL  HOUSING AGENCY THAT ESTABLISHES THAT A
 PROPERTY IS ELIGIBLE FOR REHABILITATION PROGRAM BENEFITS AND SETS  FORTH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15906-02-2
              

 A. 10456                            2
 
 THE  CERTIFIED  REASONABLE  COST  OF THE ELIGIBLE CONSTRUCTION FOR WHICH
 SUCH BENEFITS SHALL BE RECEIVED.
   (4)  "CERTIFIED REASONABLE COST SCHEDULE" SHALL MEAN A TABLE PROVIDING
 MAXIMUM DOLLAR LIMITS FOR SPECIFIED ALTERATIONS AND IMPROVEMENTS, ESTAB-
 LISHED, AND UPDATED AS NECESSARY, BY THE LOCAL HOUSING AGENCY.
   (5) "CHECKLIST" SHALL MEAN A DOCUMENT THAT THE  LOCAL  HOUSING  AGENCY
 ISSUES REQUESTING ADDITIONAL INFORMATION OR DOCUMENTATION THAT IS NECES-
 SARY  FOR  FURTHER  ASSESSMENT  OF  AN  APPLICATION FOR A CERTIFICATE OF
 ELIGIBILITY AND REASONABLE COST WHERE  SUCH  APPLICATION  CONTAINED  ALL
 INFORMATION AND DOCUMENTATION REQUIRED AT THE INITIAL FILING.
   (6)   "COMMENCEMENT   DATE"  SHALL  MEAN,  WITH  RESPECT  TO  ELIGIBLE
 CONSTRUCTION, THE DATE ON WHICH ANY PHYSICAL  OPERATION  UNDERTAKEN  FOR
 THE PURPOSE OF PERFORMING SUCH ELIGIBLE CONSTRUCTION LAWFULLY BEGINS.
   (7)   "COMPLETION   DATE"   SHALL   MEAN,  WITH  RESPECT  TO  ELIGIBLE
 CONSTRUCTION, THE DATE ON WHICH:
   (A) EVERY PHYSICAL OPERATION UNDERTAKEN FOR THE PURPOSE OF ALL  ELIGI-
 BLE CONSTRUCTION HAS CONCLUDED; AND
   (B)  ALL SUCH ELIGIBLE CONSTRUCTION HAS BEEN COMPLETED TO A REASONABLE
 AND CUSTOMARY STANDARD THAT RENDERS SUCH ELIGIBLE  CONSTRUCTION  CAPABLE
 OF  USE  FOR  THE  PURPOSE  FOR  WHICH  SUCH  ELIGIBLE  CONSTRUCTION WAS
 INTENDED.
   (8) "DWELLING UNIT" SHALL MEAN  ANY  RESIDENTIAL  ACCOMMODATION  IN  A
 CLASS A MULTIPLE DWELLING THAT:
   (A)  IS  ARRANGED,  DESIGNED,  USED OR INTENDED FOR USE BY ONE OR MORE
 PERSONS LIVING TOGETHER AND MAINTAINING A COMMON HOUSEHOLD;
   (B) CONTAINS AT LEAST ONE ROOM; AND
   (C) CONTAINS WITHIN SUCH ACCOMMODATION  LAWFUL  SANITARY  AND  KITCHEN
 FACILITIES RESERVED FOR ITS OCCUPANTS.
   (9)  "ELIGIBLE  BUILDING"  SHALL  MEAN AN ELIGIBLE RENTAL BUILDING, AN
 ELIGIBLE HOMEOWNERSHIP BUILDING, OR AN ELIGIBLE REGULATED  HOMEOWNERSHIP
 BUILDING,  PROVIDED  THAT  SUCH BUILDING CONTAINS THREE OR MORE DWELLING
 UNITS.
   (10) "ELIGIBLE CONSTRUCTION" SHALL MEAN ALTERATIONS OR IMPROVEMENTS TO
 AN ELIGIBLE BUILDING THAT:
   (A) ARE SPECIFICALLY IDENTIFIED ON THE CERTIFIED REASONABLE COST SCHE-
 DULE;
   (B) MEET THE MINIMUM SCOPE OF WORK THRESHOLD;
   (C) HAVE A COMPLETION DATE THAT IS AFTER JUNE TWENTY-NINTH, TWO  THOU-
 SAND TWENTY-TWO AND PRIOR TO JUNE THIRTIETH, TWO THOUSAND TWENTY-SIX AND
 THAT IS NOT MORE THAN THIRTY MONTHS AFTER THEIR COMMENCEMENT DATE; AND
   (D) ARE NOT ATTRIBUTABLE TO ANY INCREASED CUBIC CONTENT IN SUCH ELIGI-
 BLE BUILDING.
   (11) "ELIGIBLE HOMEOWNERSHIP BUILDING" SHALL MEAN AN EXISTING BUILDING
 THAT:
   (A)  IS A CLASS A MULTIPLE DWELLING OPERATED AS CONDOMINIUM OR COOPER-
 ATIVE HOUSING;
   (B) IS NOT OPERATING IN WHOLE OR IN PART AS A HOTEL; AND
   (C) HAS AN AVERAGE ASSESSED VALUATION, INCLUDING THE VALUATION OF  THE
 LAND, THAT AS OF THE COMMENCEMENT DATE DOES NOT EXCEED THE HOMEOWNERSHIP
 AVERAGE ASSESSED VALUATION LIMITATION.
   (12)  "ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING" SHALL MEAN AN EXIST-
 ING BUILDING THAT IS A CLASS A MULTIPLE DWELLING OWNED AND  OPERATED  BY
 EITHER:
   (A)  A MUTUAL COMPANY THAT CONTINUES TO BE ORGANIZED AND OPERATED AS A
 MUTUAL COMPANY AND THAT HAS ENTERED INTO AND RECORDED A  MUTUAL  COMPANY
 REGULATORY AGREEMENT; OR
 A. 10456                            3
 
   (B)  A MUTUAL REDEVELOPMENT COMPANY THAT CONTINUES TO BE ORGANIZED AND
 OPERATED AS A MUTUAL REDEVELOPMENT COMPANY AND THAT HAS ENTERED INTO AND
 RECORDED A MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT.
   (13) "ELIGIBLE RENTAL BUILDING" SHALL MEAN AN EXISTING BUILDING THAT:
   (A)  IS A CLASS A MULTIPLE DWELLING IN WHICH ALL OF THE DWELLING UNITS
 ARE OPERATED AS RENTAL HOUSING;
   (B) IS NOT OPERATING IN WHOLE OR IN PART AS A HOTEL; AND
   (C) SATISFIES ONE OF THE FOLLOWING CONDITIONS:
   (I) NOT LESS THAN FIFTY PERCENT OF THE DWELLING UNITS IN SUCH BUILDING
 ARE AFFORDABLE RENTAL UNITS;
   (II) SUCH BUILDING IS OWNED AND OPERATED BY A  LIMITED-PROFIT  HOUSING
 COMPANY; OR
   (III)  SUCH  BUILDING  IS  THE  RECIPIENT  OF SUBSTANTIAL GOVERNMENTAL
 ASSISTANCE.
   (14) "EXISTING BUILDING" SHALL MEAN AN ENCLOSED STRUCTURE WHICH:
   (A) IS PERMANENTLY AFFIXED TO THE LAND;
   (B) HAS ONE OR MORE FLOORS AND A ROOF;
   (C) IS BOUNDED BY WALLS;
   (D) HAS AT LEAST ONE PRINCIPAL ENTRANCE UTILIZED FOR DAY-TO-DAY PEDES-
 TRIAN INGRESS AND EGRESS;
   (E) HAS A CERTIFICATE OF OCCUPANCY OR EQUIVALENT DOCUMENT THAT  IS  IN
 EFFECT PRIOR TO THE COMMENCEMENT DATE; AND
   (F)  EXCLUSIVE OF THE LAND, HAS AN ASSESSED VALUATION OF MORE THAN ONE
 THOUSAND DOLLARS FOR THE FISCAL YEAR IMMEDIATELY PRECEDING THE COMMENCE-
 MENT DATE.
   (15) "HOMEOWNERSHIP AVERAGE ASSESSED VALUATION LIMITATION" SHALL  MEAN
 AN  AVERAGE ASSESSED VALUATION OF FORTY-FIVE THOUSAND DOLLARS PER DWELL-
 ING UNIT.
   (16) "LIMITED-PROFIT HOUSING COMPANY" SHALL HAVE THE SAME  MEANING  AS
 "COMPANY"  SET  FORTH  IN  SECTION TWELVE OF THE PRIVATE HOUSING FINANCE
 LAW.
   (17) "MARKET RENTAL UNIT" SHALL MEAN A DWELLING UNIT  IN  AN  ELIGIBLE
 RENTAL BUILDING OTHER THAN AN AFFORDABLE RENTAL UNIT.
   (18)  "MARKETING  BAND"  SHALL  MEAN MAXIMUM RENT AMOUNTS RANGING FROM
 TWENTY PERCENT OF EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR
 FAMILY SIZE, TO THIRTY PERCENT OF EIGHTY  PERCENT  OF  THE  AREA  MEDIAN
 INCOME, ADJUSTED FOR FAMILY SIZE.
   (19)  "MINIMUM  SCOPE  OF WORK THRESHOLD" SHALL MEAN A TOTAL AMOUNT OF
 CERTIFIED REASONABLE COST ESTABLISHED BY RULES AND  REGULATIONS  OF  THE
 LOCAL  HOUSING  AGENCY,  PROVIDED THAT SUCH AMOUNT SHALL BE NO LESS THAN
 ONE THOUSAND FIVE HUNDRED DOLLARS FOR EACH DWELLING UNIT IN EXISTENCE ON
 THE COMPLETION DATE.
   (20) "MULTIPLE DWELLING" SHALL HAVE THE MEANING SET FORTH  IN  SECTION
 FOUR OF THE MULTIPLE DWELLING LAW.
   (21)  "MUTUAL  COMPANY"  SHALL  HAVE  THE MEANING SET FORTH IN SECTION
 TWELVE OF THE PRIVATE HOUSING FINANCE LAW.
   (22) "MUTUAL COMPANY REGULATORY AGREEMENT" SHALL MEAN  A  BINDING  AND
 IRREVOCABLE  AGREEMENT  BETWEEN A MUTUAL COMPANY AND THE COMMISSIONER OF
 HOUSING, THE MUTUAL COMPANY SUPERVISING AGENCY, THE NEW YORK CITY  HOUS-
 ING DEVELOPMENT CORPORATION, OR THE NEW YORK STATE HOUSING FINANCE AGEN-
 CY  PROHIBITING THE DISSOLUTION OR RECONSTITUTION OF SUCH MUTUAL COMPANY
 PURSUANT TO SECTION THIRTY-FIVE OF THE PRIVATE HOUSING FINANCE  LAW  FOR
 NOT  LESS  THAN  FIFTEEN  YEARS  FROM THE COMMENCEMENT OF REHABILITATION
 PROGRAM BENEFITS FOR THE EXISTING BUILDING OWNED AND  OPERATED  BY  SUCH
 MUTUAL COMPANY.
 A. 10456                            4
 
   (23)  "MUTUAL COMPANY SUPERVISING AGENCY" SHALL HAVE THE SAME MEANING,
 WITH RESPECT TO ANY MUTUAL COMPANY, AS "SUPERVISING AGENCY" SET FORTH IN
 SECTION TWO OF THE PRIVATE HOUSING FINANCE LAW.
   (24)  "MUTUAL  REDEVELOPMENT  COMPANY"  SHALL HAVE THE SAME MEANING AS
 "MUTUAL" WHEN APPLIED TO A REDEVELOPMENT COMPANY AS SET FORTH IN SECTION
 ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW.
   (25) "MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT" SHALL MEAN  A
 BINDING AND IRREVOCABLE AGREEMENT BETWEEN A MUTUAL REDEVELOPMENT COMPANY
 AND  THE  COMMISSIONER OF HOUSING, THE REDEVELOPMENT COMPANY SUPERVISING
 AGENCY, THE NEW YORK CITY HOUSING DEVELOPMENT CORPORATION,  OR  THE  NEW
 YORK  STATE HOUSING FINANCE AGENCY PROHIBITING THE DISSOLUTION OR RECON-
 STITUTION OF SUCH MUTUAL REDEVELOPMENT COMPANY PURSUANT TO  SECTION  ONE
 HUNDRED TWENTY-THREE OF THE PRIVATE HOUSING FINANCE LAW UNTIL THE EARLI-
 ER OF: (A) FIFTEEN YEARS FROM THE COMMENCEMENT OF REHABILITATION PROGRAM
 BENEFITS  FOR  THE  EXISTING  BUILDING OWNED AND OPERATED BY SUCH MUTUAL
 REDEVELOPMENT COMPANY; OR (B) THE EXPIRATION OF ANY TAX EXEMPTION GRANT-
 ED TO SUCH MUTUAL REDEVELOPMENT COMPANY PURSUANT TO SECTION ONE  HUNDRED
 TWENTY-FIVE OF THE PRIVATE HOUSING FINANCE LAW.
   (26)  "REDEVELOPMENT  COMPANY"  SHALL  HAVE  THE  MEANING SET FORTH IN
 SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW.
   (27) "REDEVELOPMENT COMPANY SUPERVISING AGENCY" SHALL  HAVE  THE  SAME
 MEANING,  WITH  RESPECT  TO  ANY  REDEVELOPMENT COMPANY, AS "SUPERVISING
 AGENCY" SET FORTH IN SECTION ONE HUNDRED  TWO  OF  THE  PRIVATE  HOUSING
 FINANCE LAW.
   (28)  "REHABILITATION  PROGRAM  BENEFITS" SHALL MEAN EXEMPTION FROM OR
 ABATEMENT OF REAL PROPERTY TAXES PURSUANT TO THIS SUBDIVISION.
   (29) "RENT REGULATION" SHALL MEAN, COLLECTIVELY, THE EMERGENCY HOUSING
 RENT CONTROL LAW, ANY LOCAL LAW ENACTED PURSUANT TO THE LOCAL  EMERGENCY
 HOUSING RENT CONTROL ACT, THE RENT STABILIZATION LAW OF NINETEEN HUNDRED
 SIXTY-NINE,  THE  RENT  STABILIZATION  CODE,  AND  THE  EMERGENCY TENANT
 PROTECTION ACT OF NINETEEN SEVENTY-FOUR, ALL AS  IN  EFFECT  AS  OF  THE
 EFFECTIVE  DATE  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO
 THAT ADDED THIS SUBDIVISION, OR AS ANY SUCH STATUTE IS AMENDED THEREAFT-
 ER, TOGETHER WITH  ANY  SUCCESSOR  STATUTES  OR  REGULATIONS  ADDRESSING
 SUBSTANTIALLY THE SAME SUBJECT MATTER.
   (30)  "RESTRICTION PERIOD" SHALL MEAN, NOTWITHSTANDING ANY TERMINATION
 OR REVOCATION OF REHABILITATION PROGRAM BENEFITS  PRIOR  TO  THE  PERIOD
 DESCRIBED IN CLAUSE (A) OR (B), THE FOLLOWING:
   (A)  THE  PERIOD  COMMENCING  ON  THE RESTRICTIVE DECLARATION DATE AND
 EXPIRING ON THE FIFTEENTH ANNIVERSARY THEREOF, OR SUCH ADDITIONAL PERIOD
 OF TIME AS MAY BE IMPOSED PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH SIX  OF
 PARAGRAPH (F) OF THIS SUBDIVISION; OR
   (B)  FOR  AN  EXEMPTION GRANTED PURSUANT TO CLAUSE (B) OF SUBPARAGRAPH
 ONE OF PARAGRAPH (B) OF THIS SUBDIVISION, THE PERIOD COMMENCING UPON THE
 RESTRICTIVE DECLARATION DATE AND EXPIRING ON THE DATE OF THE  EXPIRATION
 OF  SUCH  EXEMPTION, OR SUCH ADDITIONAL PERIOD OF TIME AS MAY BE IMPOSED
 PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH SIX  OF  PARAGRAPH  (F)  OF  THIS
 SUBDIVISION.
   (31) "RESTRICTIVE DECLARATION" SHALL MEAN THE DOCUMENT EXECUTED BY ALL
 PARTIES IN INTEREST TO AN ELIGIBLE RENTAL BUILDING, OTHER THAN ONE OWNED
 AND  OPERATED  BY  A LIMITED-PROFIT HOUSING COMPANY, WHICH PROVIDES THAT
 SUCH ELIGIBLE RENTAL BUILDING SHALL COMPLY WITH THE APPLICABLE  REQUIRE-
 MENTS  OF  THIS SUBDIVISION, ANY LOCAL LAW OR ORDINANCE ENACTED PURSUANT
 TO THIS SUBDIVISION, AND ANY RULES AND REGULATIONS OF THE LOCAL  HOUSING
 AGENCY.
 A. 10456                            5
 
   (32)  "RESTRICTIVE  DECLARATION DATE" SHALL MEAN THE DATE UPON WHICH A
 RESTRICTIVE DECLARATION IS RECORDED AND EFFECTIVE  AGAINST  AN  ELIGIBLE
 RENTAL  BUILDING,  OTHER THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT
 HOUSING COMPANY.
   (33)  "SUBSTANTIAL  GOVERNMENTAL ASSISTANCE" SHALL MEAN GRANTS, LOANS,
 OR SUBSIDIES FROM ANY FEDERAL, STATE OR  LOCAL  GOVERNMENTAL  AGENCY  OR
 INSTRUMENTALITY  IN  FURTHERANCE  OF  A  PROGRAM  FOR THE DEVELOPMENT OF
 AFFORDABLE HOUSING APPROVED BY THE LOCAL HOUSING AGENCY,  PROVIDED  THAT
 SUCH GRANTS, LOANS, OR SUBSIDIES ARE PROVIDED IN ACCORDANCE WITH A REGU-
 LATORY  AGREEMENT  ENTERED INTO WITH SUCH AGENCY OR INSTRUMENTALITY THAT
 IS IN EFFECT AS OF THE FILING DATE OF THE APPLICATION FOR A  CERTIFICATE
 OF ELIGIBILITY AND REASONABLE COST.
   (34)  "SUBSTANTIAL  INTEREST"  SHALL MEAN AN OWNERSHIP INTEREST OF TEN
 PERCENT OR MORE.
   (B) EXEMPTION. (1) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER  SUBDI-
 VISION  OF  THIS  SECTION OR OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE
 CONTRARY, ANY CITY TO WHICH THE MULTIPLE  DWELLING  LAW  IS  APPLICABLE,
 ACTING  THROUGH ITS LOCAL LEGISLATIVE BODY OR OTHER GOVERNING AGENCY, IS
 HEREBY AUTHORIZED AND EMPOWERED, TO AND INCLUDING  JUNE  THIRTIETH,  TWO
 THOUSAND  TWENTY-FIVE,  TO  ADOPT  AND  AMEND  LOCAL  LAWS OR ORDINANCES
 PROVIDING THAT:
   (A) AN ELIGIBLE RENTAL BUILDING IN  WHICH  ELIGIBLE  CONSTRUCTION  HAS
 BEEN  COMPLETED,  AND  WHICH IS NOT THE RECIPIENT OF SUBSTANTIAL GOVERN-
 MENTAL ASSISTANCE, SHALL BE EXEMPT FROM REAL PROPERTY TAXATION FOR LOCAL
 PURPOSES AS PROVIDED HEREIN EQUAL TO FIVE PERCENT OF THE ASSESSED  VALU-
 ATION OF SUCH BUILDING AS OF THE COMMENCEMENT DATE;
   (B)  AN  ELIGIBLE  RENTAL  BUILDING IN WHICH ELIGIBLE CONSTRUCTION HAS
 BEEN COMPLETED AND WHICH IS THE RECIPIENT  OF  SUBSTANTIAL  GOVERNMENTAL
 ASSISTANCE  SHALL  BE  EXEMPT  FROM  REAL  PROPERTY  TAXATION  FOR LOCAL
 PURPOSES AS PROVIDED HEREIN EQUAL TO FIFTEEN  PERCENT  OF  THE  ASSESSED
 VALUATION OF SUCH BUILDING AS OF THE COMMENCEMENT DATE; AND
   (C)  AN  ELIGIBLE  RENTAL  BUILDING  OWNED BY A LIMITED-PROFIT HOUSING
 COMPANY OR REDEVELOPMENT COMPANY, SHALL NOT BE ELIGIBLE FOR AN EXEMPTION
 FROM REAL PROPERTY TAXATION FOR LOCAL PURPOSES PURSUANT TO THIS SUBDIVI-
 SION.
   (2) SUCH EXEMPTION SHALL BEGIN WITH THE FIRST QUARTERLY TAX BILL IMME-
 DIATELY FOLLOWING THE RESTRICTIVE DECLARATION DATE  AND  SHALL  CONTINUE
 FOR A PERIOD NOT TO EXCEED FIFTEEN YEARS IN THE AGGREGATE, AS FOLLOWS:
   (A) EXCEPT AS OTHERWISE PROVIDED HEREIN, FOR TEN YEARS, SUCH EXEMPTION
 SHALL  BE  EQUAL  TO THE AMOUNT OF ASSESSED VALUATION THAT IS SUBJECT TO
 EXEMPTION UNDER THIS PARAGRAPH AS OF THE COMMENCEMENT DATE;
   (B) FOLLOWED BY ONE YEAR OF EXEMPTION FROM EIGHTY-THREE AND  ONE-THIRD
 PERCENT OF SUCH AMOUNT;
   (C)  FOLLOWED  BY  ONE YEAR OF EXEMPTION FROM SIXTY-SIX AND TWO-THIRDS
 PERCENT OF SUCH AMOUNT;
   (D) FOLLOWED BY ONE YEAR OF  EXEMPTION  FROM  FIFTY  PERCENT  OF  SUCH
 AMOUNT;
   (E)  FOLLOWED BY ONE YEAR OF EXEMPTION FROM THIRTY-THREE AND ONE-THIRD
 PERCENT OF SUCH AMOUNT;
   (F) FOLLOWED BY ONE YEAR OF  EXEMPTION  FROM  SIXTEEN  AND  TWO-THIRDS
 PERCENT OF SUCH AMOUNT;
   (G)  AFTER WHICH THE AMOUNT OF ASSESSED VALUATION THAT HAD BEEN EXEMPT
 IS FULLY TAXABLE.
   (3) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH:
   (A) THE OWNER OF ANY SUCH ELIGIBLE RENTAL BUILDING, SHALL PAY, IN EACH
 YEAR IN WHICH REHABILITATION PROGRAM BENEFITS ARE IN EFFECT, REAL  PROP-
 A. 10456                            6
 
 ERTY TAXES ON ANY AMOUNT OF THE ASSESSED VALUATION OF SUCH BUILDING THAT
 IS NOT EXEMPTED FROM REAL PROPERTY TAXATION PURSUANT TO SUBPARAGRAPH TWO
 OF THIS PARAGRAPH AND FOR WHICH THERE IS NO ABATEMENT THEREOF IN ACCORD-
 ANCE  WITH  PARAGRAPH  (C) OF THIS SUBDIVISION, AS WELL AS ANY SUCH REAL
 PROPERTY TAXES RELATED TO THE LAND PORTION OF SUCH REAL PROPERTY; AND
   (B) IF ELIGIBLE CONSTRUCTION IS COMPLETED ON AN ELIGIBLE RENTAL BUILD-
 ING THAT IS THE RECIPIENT OF SUBSTANTIAL  GOVERNMENTAL  ASSISTANCE,  THE
 EXEMPTION  UNDER  THIS  PARAGRAPH  SHALL  CONTINUE  FOR  A PERIOD NOT TO
 EXCEED, IN THE AGGREGATE, THE GREATER OF FIFTEEN YEARS OR THE  REMAINING
 TERM,  UP  TO FORTY YEARS, OF THE RELEVANT REGULATORY AGREEMENT WITH THE
 LOCAL HOUSING AGENCY IN EFFECT AS OF THE FILING DATE OF THE  APPLICATION
 FOR  A  CERTIFICATE  OF  ELIGIBILITY AND REASONABLE COST, WITH THE FINAL
 FIVE YEARS OF SUCH EXEMPTION TO BE IMPLEMENTED IN ACCORDANCE WITH CLAUS-
 ES (B) THROUGH (F) OF SUBPARAGRAPH TWO OF THIS  PARAGRAPH,  AFTER  WHICH
 THE ASSESSED VALUE IS FULLY TAXABLE.
   (4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NO ELIGIBLE
 RENTAL  BUILDING  SHALL  RECEIVE  CONCURRENT EXEMPTIONS UNDER THIS PARA-
 GRAPH, AND UPON THE COMMENCEMENT OF AN EXEMPTION  UNDER  THIS  PARAGRAPH
 FOR  AN  ELIGIBLE  RENTAL BUILDING, ANY PRIOR EXEMPTION UNDER THIS PARA-
 GRAPH FOR SUCH ELIGIBLE RENTAL BUILDING STILL IN EFFECT SHALL IMMEDIATE-
 LY TERMINATE.
   (C) ABATEMENT. ANY SUCH LOCAL LAW OR ORDINANCE  MAY  ALSO  PROVIDE  AN
 ABATEMENT OF REAL PROPERTY TAXES ON AN ELIGIBLE BUILDING IN WHICH ELIGI-
 BLE CONSTRUCTION HAS BEEN COMPLETED, PROVIDED THAT:
   (1)  SUCH  ABATEMENT SHALL NOT EXCEED SEVENTY PERCENT OF THE CERTIFIED
 REASONABLE COST OF THE ELIGIBLE CONSTRUCTION, AS DETERMINED UNDER  RULES
 AND REGULATIONS OF THE LOCAL HOUSING AGENCY;
   (2) SUCH ABATEMENT SHALL NOT BE EFFECTIVE FOR MORE THAN TWENTY YEARS;
   (3)  THE  ANNUAL  ABATEMENT  OF  REAL  PROPERTY TAXES ON SUCH ELIGIBLE
 BUILDING SHALL NOT EXCEED EIGHT  AND  ONE-THIRD  PERCENT  OF  THE  TOTAL
 CERTIFIED REASONABLE COST OF SUCH ELIGIBLE CONSTRUCTION;
   (4)  THE  ANNUAL  ABATEMENT  OF  REAL  PROPERTY TAXES ON SUCH ELIGIBLE
 BUILDING IN ANY CONSECUTIVE TWELVE-MONTH PERIOD SHALL IN NO EVENT EXCEED
 THE AMOUNT OF REAL PROPERTY TAXES PAYABLE IN  SUCH  TWELVE-MONTH  PERIOD
 FOR  SUCH  BUILDING,  PROVIDED,  HOWEVER,  THAT SUCH ABATEMENT SHALL NOT
 EXCEED FIFTY PERCENT OF THE AMOUNT OF REAL  PROPERTY  TAXES  PAYABLE  IN
 SUCH TWELVE-MONTH PERIOD FOR ANY OF THE FOLLOWING:
   (A)  AN  ELIGIBLE  RENTAL  BUILDING  OWNED BY A LIMITED-PROFIT HOUSING
 COMPANY OR A REDEVELOPMENT COMPANY;
   (B) AN ELIGIBLE HOMEOWNERSHIP BUILDING; AND
   (C) AN ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING; AND
   (5) SUCH ABATEMENT SHALL BECOME EFFECTIVE:
   (A) FOR ELIGIBLE RENTAL BUILDINGS OTHER THAN THOSE OWNED AND  OPERATED
 BY  LIMITED-PROFIT HOUSING COMPANIES, BEGINNING WITH THE FIRST QUARTERLY
 TAX BILL IMMEDIATELY FOLLOWING THE RESTRICTIVE DECLARATION DATE;
   (B) FOR ALL OTHER ELIGIBLE BUILDINGS, INCLUDING ELIGIBLE RENTAL BUILD-
 INGS OWNED AND OPERATED BY LIMITED-PROFIT HOUSING  COMPANIES,  BEGINNING
 WITH  THE  FIRST  QUARTERLY  TAX  BILL IMMEDIATELY FOLLOWING THE DATE OF
 ISSUANCE OF THE CERTIFICATE OF ELIGIBILITY AND REASONABLE COST.
   (D) AUTHORITY OF CITY TO ADOPT RULES AND REGULATIONS. ANY  SUCH  LOCAL
 LAW  OR ORDINANCE SHALL AUTHORIZE THE ADOPTION OF RULES AND REGULATIONS,
 NOT INCONSISTENT WITH THIS SUBDIVISION, BY THE LOCAL HOUSING AGENCY  AND
 ANY OTHER LOCAL AGENCY NECESSARY FOR THE IMPLEMENTATION OF THIS SUBDIVI-
 SION.
   (E)  APPLICATIONS.   (1) ANY SUCH LOCAL LAW OR ORDINANCE SHALL REQUIRE
 THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST
 A. 10456                            7
 
 PURSUANT TO THIS SUBDIVISION BE MADE AFTER THE COMPLETION  DATE  AND  NO
 LATER THAN FOUR MONTHS FROM SUCH COMPLETION DATE.
   (2)  SUCH  APPLICATION SHALL INCLUDE EVIDENCE OF ELIGIBILITY FOR REHA-
 BILITATION PROGRAM BENEFITS AND EVIDENCE OF REASONABLE COST AS SHALL  BE
 SATISFACTORY  TO THE LOCAL HOUSING AGENCY INCLUDING, BUT NOT LIMITED TO,
 EVIDENCE SHOWING THE COST OF ELIGIBLE CONSTRUCTION.
   (3) THE LOCAL HOUSING AGENCY SHALL REQUIRE A NON-REFUNDABLE FILING FEE
 THAT SHALL BE PAID BY A CERTIFIED CHECK  OR  CASHIER'S  CHECK  UPON  THE
 FILING OF AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE
 COST.  SUCH FEE SHALL BE (A) ONE THOUSAND DOLLARS, PLUS (B) SEVENTY-FIVE
 DOLLARS FOR EACH DWELLING UNIT IN EXCESS OF SIX DWELLING  UNITS  IN  THE
 ELIGIBLE BUILDING THAT IS THE SUBJECT OF SUCH APPLICATION.
   (4)  ANY  APPLICATION THAT IS FILED PURSUANT TO THIS PARAGRAPH THAT IS
 MISSING ANY OF THE INFORMATION AND  DOCUMENTATION  REQUIRED  AT  INITIAL
 FILING  BY  SUCH LOCAL LAW OR ORDINANCE AND ANY RULES AND REGULATIONS OF
 THE LOCAL HOUSING AGENCY SHALL BE DENIED, PROVIDED THAT A  NEW  APPLICA-
 TION FOR THE SAME ELIGIBLE CONSTRUCTION, TOGETHER WITH A NEW NON-REFUND-
 ABLE  FILING  FEE, MAY BE FILED WITHIN FIFTEEN DAYS OF THE DATE OF ISSU-
 ANCE OF SUCH DENIAL. IF SUCH SECOND APPLICATION IS ALSO MISSING ANY SUCH
 REQUIRED INFORMATION AND  DOCUMENTATION,  IT  SHALL  BE  DENIED  AND  NO
 FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMIT-
 TED.
   (5)  THE  FAILURE  OF  AN APPLICANT TO RESPOND TO ANY CHECKLIST WITHIN
 THIRTY DAYS OF THE DATE OF ITS ISSUANCE  BY  THE  LOCAL  HOUSING  AGENCY
 SHALL  RESULT IN DENIAL OF SUCH APPLICATION, AND NO FURTHER APPLICATIONS
 FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMITTED. THE LOCAL HOUSING
 AGENCY SHALL ISSUE NOT MORE THAN THREE CHECKLISTS  PER  APPLICATION.  AN
 APPLICATION  FOR  A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST SHALL
 BE DENIED WHEN THE LOCAL HOUSING AGENCY DOES NOT HAVE A SUFFICIENT BASIS
 TO ISSUE A CERTIFICATE OF ELIGIBILITY  AND  REASONABLE  COST  AFTER  THE
 TIMELY  RESPONSE  OF AN APPLICANT TO THE THIRD CHECKLIST CONCERNING SUCH
 APPLICATION.  AFTER THE LOCAL HOUSING AGENCY HAS DENIED  AN  APPLICATION
 FOR  THE  REASON  DESCRIBED IN THE PRECEDING SENTENCE, SUCH AGENCY SHALL
 PERMIT NO FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION.
   (6) AN APPLICATION FOR A CERTIFICATE  OF  ELIGIBILITY  AND  REASONABLE
 COST SHALL ALSO INCLUDE AN AFFIDAVIT OF NO HARASSMENT.
   (A) SUCH AFFIDAVIT SHALL SET FORTH THE FOLLOWING INFORMATION:
   (I)  THE  NAME  OF  EVERY  OWNER  OF RECORD AND OWNER OF A SUBSTANTIAL
 INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING
 OR SPONSORING THE ELIGIBLE CONSTRUCTION; AND
   (II) A STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE  YEARS
 PRIOR  TO THE COMPLETION DATE, BEEN FOUND TO HAVE HARASSED OR UNLAWFULLY
 EVICTED TENANTS BY JUDGMENT OR  DETERMINATION  OF  A  COURT  OR  AGENCY,
 INCLUDING  A  NON-GOVERNMENTAL AGENCY HAVING APPROPRIATE LEGAL JURISDIC-
 TION, UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW  REGULATING  RENTS  OR
 ANY  STATE  OR  LOCAL  LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL
 EVICTION.
   (B) NO ELIGIBLE BUILDING SHALL BE ELIGIBLE FOR AN  EXEMPTION  PURSUANT
 TO  PARAGRAPH  (B) OF THIS SUBDIVISION OR AN ABATEMENT PURSUANT TO PARA-
 GRAPH (C) OF THIS SUBDIVISION WHERE:
   (I) ANY AFFIDAVIT REQUIRED UNDER THIS SUBPARAGRAPH HAS NOT BEEN FILED;
 OR
   (II) ANY SUCH AFFIDAVIT CONTAINS A WILLFUL MISREPRESENTATION OR  OMIS-
 SION OF ANY MATERIAL FACT; OR
   (III)  ANY  OWNER  OF RECORD OR OWNER OF A SUBSTANTIAL INTEREST IN THE
 ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING  OR  SPONSORING
 A. 10456                            8
 
 THE  ELIGIBLE  CONSTRUCTION HAS BEEN FOUND, BY JUDGMENT OR DETERMINATION
 OF A COURT OR AGENCY, INCLUDING A NON-GOVERNMENTAL AGENCY HAVING  APPRO-
 PRIATE  LEGAL  JURISDICTION, UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW
 REGULATING  RENTS  OR  ANY  STATE OR LOCAL LAW RELATING TO HARASSMENT OF
 TENANTS OR UNLAWFUL EVICTION, TO HAVE, WITHIN THE FIVE  YEARS  PRIOR  TO
 THE  COMPLETION  DATE, HARASSED OR UNLAWFULLY EVICTED TENANTS, UNTIL AND
 UNLESS THE FINDING IS REVERSED ON APPEAL.
   (C) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL,  SPECIAL  OR  LOCAL
 LAW  TO  THE  CONTRARY, THE CORPORATION COUNSEL OR OTHER LEGAL REPRESEN-
 TATIVE OF A CITY HAVING A POPULATION OF  ONE  MILLION  OR  MORE  OR  THE
 DISTRICT  ATTORNEY  OF ANY COUNTY, MAY INSTITUTE AN ACTION OR PROCEEDING
 IN ANY COURT OF COMPETENT JURISDICTION THAT MAY BE APPROPRIATE OR NECES-
 SARY TO DETERMINE WHETHER ANY OWNER OF RECORD OR OWNER OF A  SUBSTANTIAL
 INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING
 OR  SPONSORING  THE  ELIGIBLE  CONSTRUCTION  HAS  HARASSED OR UNLAWFULLY
 EVICTED TENANTS AS DESCRIBED IN THIS SUBPARAGRAPH.
   (7) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL,  SPECIAL  OR  LOCAL
 LAW  TO  THE CONTRARY, THE LOCAL HOUSING AGENCY MAY REQUIRE BY RULES AND
 REGULATIONS THAT AN APPLICATION FOR A  CERTIFICATE  OF  ELIGIBILITY  AND
 REASONABLE COST BE FILED ELECTRONICALLY.
   (F) ADDITIONAL REQUIREMENTS FOR AN ELIGIBLE RENTAL BUILDING OTHER THAN
 ONE  OWNED  AND  OPERATED  BY A LIMITED-PROFIT HOUSING COMPANY. ANY SUCH
 LOCAL LAW OR ORDINANCE SHALL, IN ADDITION TO  ALL  OTHER  CONDITIONS  OF
 ELIGIBILITY FOR REHABILITATION PROGRAM BENEFITS SET FORTH IN THIS SUBDI-
 VISION,  REQUIRE  THAT AN ELIGIBLE RENTAL BUILDING, OTHER THAN ONE OWNED
 AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY, ALSO COMPLY  WITH  ALL
 PROVISIONS OF THIS PARAGRAPH. NOTWITHSTANDING THE FOREGOING, AN ELIGIBLE
 RENTAL  BUILDING  THAT  IS  THE  RECIPIENT  OF  SUBSTANTIAL GOVERNMENTAL
 ASSISTANCE SHALL NOT BE  REQUIRED  TO  COMPLY  WITH  THE  PROVISIONS  OF
 SUBPARAGRAPH THREE OF THIS PARAGRAPH.
   (1)  NOTWITHSTANDING ANY PROVISION OF RENT REGULATION TO THE CONTRARY,
 ANY MARKET RENTAL UNIT WITHIN SUCH ELIGIBLE RENTAL BUILDING  SUBJECT  TO
 RENT  REGULATION  AS OF THE FILING DATE OF THE APPLICATION FOR A CERTIF-
 ICATE OF ELIGIBILITY AND REASONABLE COST AND ANY AFFORDABLE RENTAL  UNIT
 WITHIN SUCH ELIGIBLE RENTAL BUILDING SHALL BE SUBJECT TO RENT REGULATION
 UNTIL  SUCH  UNIT  FIRST  BECOMES  VACANT  AFTER  THE  EXPIRATION OF THE
 RESTRICTION PERIOD AT WHICH TIME SUCH UNIT, UNLESS IT WOULD  BE  SUBJECT
 TO  RENT REGULATION FOR REASONS OTHER THAN THE PROVISIONS OF THIS SUBDI-
 VISION,  SHALL  BE  DEREGULATED,  PROVIDED,  HOWEVER,  THAT  DURING  THE
 RESTRICTION  PERIOD,  NO  EXEMPTION OR EXCLUSION FROM ANY REQUIREMENT OF
 RENT REGULATION SHALL APPLY TO SUCH DWELLING UNITS.
   (2) THE OWNER OF AN ELIGIBLE RENTAL BUILDING SHALL EXECUTE AND  RECORD
 A  RESTRICTIVE  DECLARATION, IN A FORM SATISFACTORY TO THE LOCAL HOUSING
 AGENCY, THAT REQUIRES COMPLIANCE WITH THE PROVISIONS  OF  THIS  SUBDIVI-
 SION,  SUCH LOCAL LAW OR ORDINANCE, AND THE RULES AND REGULATIONS OF THE
 LOCAL HOUSING AGENCY. SUCH RESTRICTIVE DECLARATION SHALL BIND THE  OWNER
 OF SUCH ELIGIBLE RENTAL BUILDING AND ITS SUCCESSORS AND ASSIGNS, AND MAY
 INCLUDE  SUCH  OTHER  TERMS  AND  CONDITIONS AS THE LOCAL HOUSING AGENCY
 SHALL DETERMINE.
   (3) ADDITIONAL REQUIREMENTS FOR AN ELIGIBLE RENTAL  BUILDING  THAT  IS
 NOT A RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE.
   (A) NOT LESS THAN FIFTY PERCENT OF THE DWELLING UNITS IN SUCH ELIGIBLE
 RENTAL  BUILDING  SHALL  BE  DESIGNATED  AS AFFORDABLE RENTAL UNITS. THE
 RESTRICTIVE DECLARATION FOR ANY SUCH ELIGIBLE RENTAL BUILDING SHALL  NOT
 BE  EXECUTED AND RECORDED UNTIL LEASES IN ACCORDANCE WITH THE APPLICABLE
 PROVISIONS OF RENT REGULATION HAVE BEEN EXECUTED  WITH  RESPECT  TO  ALL
 A. 10456                            9
 
 AFFORDABLE  RENTAL  UNITS  WITHIN  SUCH ELIGIBLE RENTAL BUILDING AND ALL
 AFFORDABLE RENTAL UNITS HAVE BEEN REGISTERED  IN  ACCORDANCE  WITH  SUCH
 RENT REGULATION PROVISIONS.
   (B)  THE  OWNER  OF SUCH ELIGIBLE RENTAL BUILDING SHALL ENSURE THAT NO
 AFFORDABLE RENTAL UNIT IS HELD OFF THE MARKET FOR A PERIOD THAT IS LONG-
 ER THAN REASONABLY NECESSARY. TO THAT END, SUCH OWNER SHALL  NOTIFY  THE
 LOCAL  HOUSING  AGENCY  OF A VACANCY OF AN AFFORDABLE RENTAL UNIT WITHIN
 SUCH RENTAL BUILDING DURING THE RESTRICTION PERIOD NO LATER  THAN  FOUR-
 TEEN  DAYS  FOLLOWING  SUCH  VACANCY, AFTER WHICH SUCH AFFORDABLE RENTAL
 UNIT SHALL BE MARKETED IN ACCORDANCE WITH THE RULES AND  REGULATIONS  OF
 THE  LOCAL  HOUSING  AGENCY AND SHALL BE RENTED BY THE OWNER IN A PROMPT
 AND TIMELY MANNER. THE LOCAL HOUSING AGENCY MAY IMPOSE REQUIREMENTS UPON
 SUCH OWNER TO FACILITATE SUCH PROMPT AND TIMELY RENTAL, AS SET FORTH  IN
 RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY.
   (C)  THE  OWNER  OF  SUCH  ELIGIBLE  RENTAL BUILDING SHALL, DURING THE
 RESTRICTION PERIOD, WAIVE THE COLLECTION OF ANY MAJOR  CAPITAL  IMPROVE-
 MENT RENT INCREASE GRANTED BY THE NEW YORK STATE DIVISION OF HOUSING AND
 COMMUNITY  RENEWAL  PURSUANT  TO RENT REGULATION THAT IS ATTRIBUTABLE TO
 ELIGIBLE CONSTRUCTION FOR WHICH SUCH ELIGIBLE RENTAL  BUILDING  RECEIVES
 REHABILITATION  PROGRAM  BENEFITS, AND SHALL FILE A DECLARATION WITH THE
 NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL PROVIDING  SUCH
 WAIVER.
   (D)  AN  AFFORDABLE  RENTAL  UNIT  SHALL NOT BE RENTED ON A TEMPORARY,
 TRANSIENT OR SHORT-TERM BASIS.  EVERY LEASE AND RENEWAL THEREOF  FOR  AN
 AFFORDABLE  RENTAL  UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS, AT THE
 OPTION OF THE TENANT, AND SHALL INCLUDE A  NOTICE  IN  AT  LEAST  TWELVE
 POINT TYPE INFORMING SUCH TENANT OF THEIR RIGHTS PURSUANT TO THIS SUBDI-
 VISION,  INCLUDING  AN EXPLANATION OF THE RESTRICTIONS ON RENT INCREASES
 THAT MAY BE IMPOSED ON SUCH AFFORDABLE RENTAL UNIT.
   (E) THE LOCAL HOUSING AGENCY MAY ESTABLISH BY  RULES  AND  REGULATIONS
 SUCH  REQUIREMENTS AS THE LOCAL HOUSING AGENCY DEEMS NECESSARY OR APPRO-
 PRIATE FOR THE FOLLOWING:
   (I) DESIGNATING AFFORDABLE RENTAL UNITS, INCLUDING,  BUT  NOT  LIMITED
 TO,  DESIGNATING  THE  UNIT  MIX  AND  DISTRIBUTION REQUIREMENTS OF SUCH
 AFFORDABLE RENTAL UNITS IN AN ELIGIBLE BUILDING;
   (II) MARKETING AFFORDABLE RENTAL UNITS UPON ANY VACANCY; AND
   (III) MONITORING COMPLIANCE WITH THE PROVISIONS OF  THIS  SUBDIVISION.
 SUCH  REQUIREMENTS  MAY INCLUDE, BUT NEED NOT BE LIMITED TO, RETAINING A
 MONITOR APPROVED BY THE LOCAL HOUSING AGENCY AND PAID FOR BY  THE  OWNER
 OF THE ELIGIBLE RENTAL BUILDING.
   (4)  THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL NOT ENGAGE IN OR
 CAUSE ANY HARASSMENT OF THE TENANTS OF SUCH ELIGIBLE RENTAL BUILDING  OR
 UNLAWFULLY EVICT ANY SUCH TENANTS DURING THE RESTRICTION PERIOD.
   (5)  NO  DWELLING  UNITS WITHIN SUCH ELIGIBLE RENTAL BUILDING SHALL BE
 CONVERTED TO COOPERATIVE OR CONDOMINIUM OWNERSHIP DURING THE RESTRICTION
 PERIOD.
   (6) ANY  NON-COMPLIANCE  OF  AN  ELIGIBLE  RENTAL  BUILDING  WITH  THE
 PROVISIONS  OF  THIS  PARAGRAPH SHALL PERMIT THE LOCAL HOUSING AGENCY TO
 TAKE THE FOLLOWING ACTION:
   (A) EXTEND THE RESTRICTION PERIOD;
   (B) INCREASE THE NUMBER OF AFFORDABLE RENTAL UNITS  IN  SUCH  ELIGIBLE
 RENTAL BUILDING;
   (C)  IMPOSE  A  PENALTY  OF  NOT MORE THAN THE PRODUCT OF ONE THOUSAND
 DOLLARS PER INSTANCE OF NON-COMPLIANCE AND THE NUMBER OF DWELLING  UNITS
 CONTAINED IN SUCH ELIGIBLE RENTAL BUILDING; AND
 A. 10456                           10
 
   (D) TERMINATE OR REVOKE ANY REHABILITATION PROGRAM BENEFITS IN ACCORD-
 ANCE WITH PARAGRAPH (N) OF THIS SUBDIVISION.
   (G)  COMPLIANCE  WITH  APPLICABLE LAW. ANY SUCH LOCAL LAW OR ORDINANCE
 MAY ALSO PROVIDE THAT  REHABILITATION  PROGRAM  BENEFITS  SHALL  NOT  BE
 ALLOWED  FOR ANY ELIGIBLE BUILDING UNLESS AND UNTIL SUCH ELIGIBLE BUILD-
 ING COMPLIES WITH ALL APPLICABLE PROVISIONS OF LAW.
   (H) IMPLEMENTATION OF REHABILITATION PROGRAM BENEFITS.  UPON  ISSUANCE
 OF  A  CERTIFICATE  OF  ELIGIBILITY  AND  REASONABLE COST AND PAYMENT OF
 OUTSTANDING FEES, THE LOCAL HOUSING AGENCY SHALL BE AUTHORIZED TO TRANS-
 MIT SUCH CERTIFICATE OF ELIGIBILITY AND REASONABLE  COST  TO  THE  LOCAL
 AGENCY  RESPONSIBLE FOR REAL PROPERTY TAX ASSESSMENT.  UPON RECEIPT OF A
 CERTIFICATE OF ELIGIBILITY AND REASONABLE COST, THE LOCAL AGENCY RESPON-
 SIBLE FOR REAL PROPERTY TAX ASSESSMENT SHALL CERTIFY THE AMOUNT OF VALUE
 TO BE EXEMPT FROM TAXATION AND THE AMOUNT OF TAXES TO BE ABATED PURSUANT
 TO PARAGRAPHS (B) AND (C) OF THIS SUBDIVISION, RESPECTIVELY, AND  PURSU-
 ANT  TO  SUCH CERTIFICATE OF ELIGIBILITY AND REASONABLE COST PROVIDED BY
 THE LOCAL HOUSING AGENCY.
   (I) OUTSTANDING TAXES AND CHARGES. ANY SUCH  LOCAL  LAW  OR  ORDINANCE
 SHALL  ALSO  PROVIDE  THAT  REHABILITATION PROGRAM BENEFITS SHALL NOT BE
 ALLOWED FOR AN ELIGIBLE BUILDING IN EITHER OF THE FOLLOWING CASES:
   (1) THERE ARE OUTSTANDING REAL ESTATE TAXES OR WATER AND SEWER CHARGES
 OR PAYMENTS IN LIEU OF TAXES THAT ARE DUE AND OWING AS OF THE  LAST  DAY
 OF  THE  TAX PERIOD PRECEDING THE DATE OF THE RECEIPT OF THE CERTIFICATE
 OF ELIGIBILITY AND REASONABLE COST BY THE LOCAL AGENCY  RESPONSIBLE  FOR
 REAL PROPERTY TAX ASSESSMENT; OR
   (2)  REAL  ESTATE  TAXES  OR  WATER  AND SEWER CHARGES DUE AT ANY TIME
 DURING THE AUTHORIZED TERM OF SUCH BENEFITS REMAIN UNPAID FOR  ONE  YEAR
 AFTER THE SAME ARE DUE AND PAYABLE.
   (J) ADDITIONAL LIMITATIONS ON ELIGIBILITY. ANY SUCH LOCAL LAW OR ORDI-
 NANCE SHALL ALSO PROVIDE THAT:
   (1)  REHABILITATION  PROGRAM  BENEFITS  SHALL  NOT  BE ALLOWED FOR ANY
 ELIGIBLE BUILDING RECEIVING TAX EXEMPTION OR ABATEMENT CONCURRENTLY  FOR
 REHABILITATION OR NEW CONSTRUCTION UNDER ANY OTHER PROVISION OF STATE OR
 LOCAL  LAW  OR ORDINANCE WITH THE EXCEPTION OF ANY ELIGIBLE CONSTRUCTION
 TO AN ELIGIBLE BUILDING RECEIVING A TAX EXEMPTION OR ABATEMENT UNDER THE
 PROVISIONS OF THE PRIVATE HOUSING FINANCE LAW;
   (2) REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR ANY  ITEM
 OF ELIGIBLE CONSTRUCTION IN AN ELIGIBLE BUILDING IF SUCH ELIGIBLE BUILD-
 ING  IS  RECEIVING  TAX EXEMPTION OR ABATEMENT FOR THE SAME OR A SIMILAR
 ITEM OF ELIGIBLE CONSTRUCTION AS OF THE DECEMBER THIRTY-FIRST  PRECEDING
 THE  DATE OF APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE
 COST FOR SUCH REHABILITATION PROGRAM BENEFITS;
   (3) WHERE THE ELIGIBLE CONSTRUCTION INCLUDES OR BENEFITS A PORTION  OF
 AN  ELIGIBLE  BUILDING  THAT  IS NOT OCCUPIED FOR DWELLING PURPOSES, THE
 ASSESSED VALUATION OF SUCH ELIGIBLE BUILDING AND THE COST OF THE  ELIGI-
 BLE  CONSTRUCTION  SHALL  BE  APPORTIONED SO THAT REHABILITATION PROGRAM
 BENEFITS SHALL NOT BE PROVIDED FOR ELIGIBLE CONSTRUCTION MADE FOR  OTHER
 THAN DWELLING PURPOSES; AND
   (4)  REHABILITATION  PROGRAM BENEFITS SHALL NOT BE APPLIED TO ABATE OR
 REDUCE THE TAXES UPON THE LAND PORTION OF  REAL  PROPERTY,  WHICH  SHALL
 CONTINUE  TO  BE TAXED BASED UPON THE ASSESSED VALUATION OF THE LAND AND
 THE APPLICABLE TAX RATE AT THE TIME SUCH TAXES ARE LEVIED.
   (K) RE-INSPECTION PENALTY. ANY SUCH LOCAL LAW OR ORDINANCE SHALL  ALSO
 PROVIDE  THAT  IF  THE  LOCAL  HOUSING AGENCY CANNOT VERIFY THE ELIGIBLE
 CONSTRUCTION CLAIMED BY AN APPLICANT UPON THE FIRST  INSPECTION  BY  THE
 LOCAL  HOUSING  AGENCY OF THE ELIGIBLE BUILDING, SUCH APPLICANT SHALL BE
 A. 10456                           11
 
 REQUIRED TO PAY TEN TIMES THE ACTUAL COST OF ANY  ADDITIONAL  INSPECTION
 NEEDED TO VERIFY SUCH ELIGIBLE CONSTRUCTION.
   (L)  STRICT  LIABILITY FOR INACCURATE APPLICATIONS. ANY SUCH LOCAL LAW
 OR ORDINANCE SHALL ALSO PROVIDE THAT IF THE LOCAL HOUSING AGENCY  DETER-
 MINES  THAT  AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASON-
 ABLE COST CONTAINS A MATERIAL MISSTATEMENT OF FACT,  THE  LOCAL  HOUSING
 AGENCY  MAY  REJECT SUCH APPLICATION AND BAR THE SUBMISSION OF ANY OTHER
 APPLICATION PURSUANT TO THIS SUBDIVISION WITH RESPECT TO  SUCH  ELIGIBLE
 BUILDING  FOR A PERIOD NOT TO EXCEED THREE YEARS. AN APPLICANT SHALL NOT
 BE RELIEVED FROM LIABILITY UNDER THIS PARAGRAPH BECAUSE IT SUBMITTED ITS
 APPLICATION UNDER A MISTAKEN BELIEF OF FACT.  FURTHERMORE, ANY PERSON OR
 ENTITY THAT FILES MORE THAN SIX APPLICATIONS CONTAINING SUCH A  MATERIAL
 MISSTATEMENT OF FACT WITHIN ANY TWELVE MONTH PERIOD SHALL BE BARRED FROM
 SUBMITTING  ANY  NEW  APPLICATION FOR REHABILITATION PROGRAM BENEFITS ON
 BEHALF OF ANY ELIGIBLE BUILDING FOR A PERIOD NOT TO EXCEED FIVE YEARS.
   (M) INVESTIGATORY AUTHORITY. ANY SUCH LOCAL  LAW  OR  ORDINANCE  SHALL
 ALSO  ALLOW  THE LOCAL HOUSING AGENCY TO REQUIRE SUCH CERTIFICATIONS AND
 CONSENTS NECESSARY TO ACCESS RECORDS, INCLUDING OTHER  TAX  RECORDS,  AS
 MAY  BE  DEEMED  APPROPRIATE  TO ENFORCE THE ELIGIBILITY REQUIREMENTS OF
 THIS SUBDIVISION. ANY SUCH LOCAL LAW OR ORDINANCE SHALL FURTHER  PROVIDE
 THAT,  FOR  PURPOSES OF DETERMINING AND CERTIFYING ELIGIBILITY FOR REHA-
 BILITATION PROGRAM BENEFITS AND THE  REASONABLE  COST  OF  ANY  ELIGIBLE
 CONSTRUCTION, THE LOCAL HOUSING AGENCY SHALL BE AUTHORIZED TO:
   (1)  ADMINISTER OATHS TO AND TAKE THE TESTIMONY OF ANY PERSON, INCLUD-
 ING, BUT NOT LIMITED TO, THE OWNER OF SUCH ELIGIBLE BUILDING;
   (2) ISSUE SUBPOENAS REQUIRING THE ATTENDANCE OF SUCH PERSONS  AND  THE
 PRODUCTION OF ANY BILLS, BOOKS, PAPERS OR OTHER DOCUMENTS AS IT MAY DEEM
 NECESSARY;
   (3)  MAKE PRELIMINARY ESTIMATES OF THE MAXIMUM REASONABLE COST OF SUCH
 ELIGIBLE CONSTRUCTION;
   (4) ESTABLISH MAXIMUM ALLOWABLE COSTS OF SPECIFIED UNITS, FIXTURES  OR
 WORK IN SUCH ELIGIBLE CONSTRUCTION;
   (5)  REQUIRE THE SUBMISSION OF PLANS AND SPECIFICATIONS OF SUCH ELIGI-
 BLE CONSTRUCTION BEFORE THE COMMENCEMENT THEREOF;
   (6) REQUIRE PHYSICAL ACCESS TO INSPECT THE ELIGIBLE BUILDING; AND
   (7) ON AN ANNUAL BASIS, REQUIRE  THE  SUBMISSION  OF  LEASES  FOR  ANY
 DWELLING  UNIT  IN  A  BUILDING GRANTED A CERTIFICATE OF ELIGIBILITY AND
 REASONABLE COST.
   (N) TERMINATION OR REVOCATION. ANY SUCH LOCAL LAW OR  ORDINANCE  SHALL
 PROVIDE  THAT FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION,
 ANY SUCH LOCAL LAW OR ORDINANCE, ANY RULES AND  REGULATIONS  PROMULGATED
 THEREUNDER,  OR  ANY  RESTRICTIVE DECLARATION, MUTUAL COMPANY REGULATORY
 AGREEMENT, OR MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT  ENTERED
 INTO  THEREUNDER, MAY RESULT IN REVOCATION OF ANY REHABILITATION PROGRAM
 BENEFITS RETROACTIVE TO THE COMMENCEMENT THEREOF.  SUCH  TERMINATION  OR
 REVOCATION  SHALL  NOT  EXEMPT  SUCH  ELIGIBLE  BUILDING  FROM CONTINUED
 COMPLIANCE WITH THE REQUIREMENTS OF THIS SUBDIVISION, SUCH LOCAL LAW  OR
 ORDINANCE, SUCH RULES AND REGULATIONS, AND SUCH RESTRICTIVE DECLARATION,
 MUTUAL  COMPANY  REGULATORY  AGREEMENT,  OR MUTUAL REDEVELOPMENT COMPANY
 REGULATORY AGREEMENT.
   (O) CRIMINAL LIABILITY FOR UNAUTHORIZED USES. ANY SUCH  LOCAL  LAW  OR
 ORDINANCE  SHALL  ALSO  PROVIDE  THAT IN THE EVENT THAT ANY RECIPIENT OF
 REHABILITATION PROGRAM BENEFITS USES ANY DWELLING UNIT IN SUCH  ELIGIBLE
 BUILDING IN VIOLATION OF THE REQUIREMENTS OF SUCH LOCAL LAW OR ORDINANCE
 AS  ADOPTED  PURSUANT  TO THIS SUBDIVISION AND ANY RULES AND REGULATIONS
 PROMULGATED PURSUANT THERETO, SUCH  RECIPIENT  SHALL  BE  GUILTY  OF  AN
 A. 10456                           12
 
 UNCLASSIFIED MISDEMEANOR PUNISHABLE BY A FINE IN AN AMOUNT EQUIVALENT TO
 DOUBLE THE VALUE OF THE GAIN OF SUCH RECIPIENT FROM SUCH UNLAWFUL USE OR
 IMPRISONMENT FOR NOT MORE THAN NINETY DAYS, OR BOTH.
   (P)  PRIVATE  RIGHT  OF  ACTION.  ANY  PROSPECTIVE, PRESENT, OR FORMER
 TENANT OF AN ELIGIBLE RENTAL BUILDING MAY SUE TO  ENFORCE  THE  REQUIRE-
 MENTS  AND PROHIBITIONS OF THIS SUBDIVISION, ANY SUCH LOCAL LAW OR ORDI-
 NANCE, ANY RULES AND REGULATIONS PROMULGATED THEREUNDER, OR ANY RESTRIC-
 TIVE DECLARATION ENTERED INTO THEREUNDER, IN THE SUPREME  COURT  OF  NEW
 YORK.  ANY  SUCH  INDIVIDUAL  HARMED  BY  REASON  OF A VIOLATION OF SUCH
 REQUIREMENTS AND PROHIBITIONS MAY SUE THEREFOR IN THE SUPREME  COURT  OF
 NEW  YORK  ON  BEHALF OF HIMSELF OR HERSELF, AND SHALL RECOVER THREEFOLD
 THE DAMAGES SUSTAINED AND THE COST OF THE SUIT, INCLUDING  A  REASONABLE
 ATTORNEY'S  FEE.  THE  LOCAL  HOUSING  AGENCY MAY USE ANY COURT DECISION
 UNDER THIS PARAGRAPH THAT IS ADVERSE TO THE OWNER OF AN ELIGIBLE  BUILD-
 ING  AS  THE  BASIS  FOR FURTHER ENFORCEMENT ACTION. NOTWITHSTANDING ANY
 OTHER PROVISION OF LAW, AN ACTION BY A  TENANT  OF  AN  ELIGIBLE  RENTAL
 BUILDING  UNDER  THIS  PARAGRAPH MUST BE COMMENCED WITHIN SIX YEARS FROM
 THE DATE OF THE LATEST VIOLATION.
   (Q) APPOINTMENT OF RECEIVER. IN ADDITION TO THE REMEDIES FOR  NON-COM-
 PLIANCE PROVIDED FOR IN SUBPARAGRAPH SIX OF PARAGRAPH (F) OF THIS SUBDI-
 VISION,  ANY SUCH LOCAL LAW OR ORDINANCE MAY ALSO PROVIDE THAT THE LOCAL
 HOUSING AGENCY MAY MAKE APPLICATION FOR THE APPOINTMENT OF A RECEIVER IN
 ACCORDANCE WITH THE PROCEDURES CONTAINED IN SUCH LOCAL LAW OR ORDINANCE.
 ANY RECEIVER APPOINTED PURSUANT TO THIS PARAGRAPH SHALL  BE  AUTHORIZED,
 IN  ADDITION  TO ANY OTHER POWERS CONFERRED BY LAW, TO EFFECT COMPLIANCE
 WITH THE PROVISIONS OF THIS SUBDIVISION, SUCH LOCAL  LAW  OR  ORDINANCE,
 AND  RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY. ANY EXPENDITURES
 INCURRED BY THE RECEIVER TO AFFECT SUCH COMPLIANCE  SHALL  CONSTITUTE  A
 DEBT  OF  THE OWNER AND A LIEN UPON THE PROPERTY, AND UPON THE RENTS AND
 INCOME THEREOF, IN ACCORDANCE WITH  THE  PROCEDURES  CONTAINED  IN  SUCH
 LOCAL  LAW  OR ORDINANCE. THE LOCAL HOUSING AGENCY IN ITS DISCRETION MAY
 PROVIDE FUNDS TO BE EXPENDED BY  THE  RECEIVER,  AND  SUCH  FUNDS  SHALL
 CONSTITUTE A DEBT RECOVERABLE FROM THE OWNER IN ACCORDANCE WITH APPLICA-
 BLE LOCAL LAWS OR ORDINANCES.
   (R)  AUTHORITY  OF  CITY  TO  LIMIT  LOCAL LAW. WHERE A CITY ENACTS OR
 AMENDS A LOCAL LAW OR ORDINANCE UNDER THIS SUBDIVISION, SUCH  LOCAL  LAW
 OR  ORDINANCE MAY RESTRICT, LIMIT OR CONDITION THE ELIGIBILITY, SCOPE OR
 AMOUNT OF REHABILITATION PROGRAM BENEFITS UNDER THE LOCAL LAW  OR  ORDI-
 NANCE  IN  ANY  MANNER, PROVIDED THAT THE LOCAL LAW OR ORDINANCE MAY NOT
 GRANT REHABILITATION PROGRAM BENEFITS  BEYOND  THOSE  PROVIDED  IN  THIS
 SUBDIVISION.
   § 2. This act shall take effect immediately.