S T A T E   O F   N E W   Y O R K
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                                 10694--A
 
                           I N  A S S E M B L Y
 
                              August 28, 2024
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Carroll,
   Simon) -- read once and referred to the  Committee  on  Real  Property
   Taxation  -- recommitted to the Committee on Real Property Taxation in
   accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the real property tax law, in relation to  enacting  the
   "New York city arts space act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York city arts space act".
   § 2. Section 467-m of the real property tax law is amended by adding a
 new subdivision 4-a to read as follows:
   4-A.  AFFORDABLE  ARTS  SPACE  BENEFITS  AND  REQUIREMENTS. A. FOR THE
 PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (I) "AFFORDABLE ARTS SPACE" SHALL MEAN A SPACE RENTED OR LEASED BY  AN
 ELIGIBLE  ARTS  ORGANIZATION  FOR  USE AS STUDIO, REHEARSAL, PERFORMANCE
 SPACE, OR ARTS OR CULTURAL PROGRAMMING OPEN TO THE GENERAL PUBLIC IN  AN
 ELIGIBLE MULTIPLE DWELLING; AND
   (II)  "ELIGIBLE ARTS ORGANIZATION" SHALL MEAN A NONPROFIT ORGANIZATION
 EITHER INCORPORATED IN OR REGISTERED TO DO BUSINESS IN THE STATE OF  NEW
 YORK  OR AN ORGANIZATION LOCATED IN THE STATE OF NEW YORK AND RECOGNIZED
 AS TAX-EXEMPT UNDER SECTION 501 (C) (3) OF THE  UNITED  STATES  INTERNAL
 REVENUE CODE.
   B. AN AFFORDABLE ARTS SPACE SHALL MEET THE FOLLOWING REQUIREMENTS:
   (I) HAVE A MINIMUM TWO PERCENT OF THE AGGREGATE FLOOR AREA IN ELIGIBLE
 MULTIPLE  DWELLINGS  AND UP TO FIFTY PERCENT OF SUCH SPACE MAY BE CELLAR
 SPACE AS DEFINED BY A CITY OF NEW YORK ZONING RESOLUTION;
   (II) WHEN AN ELIGIBLE ARTS ORGANIZATION SUBLEASES AN  AFFORDABLE  ARTS
 SPACE  TO AN ORGANIZATION THAT IS NOT AN ELIGIBLE ARTS ORGANIZATION SUCH
 RENTS SHALL COMPLY WITH REQUIREMENTS OF THIS SUBDIVISION. SUCH  NON-ELI-
 GIBLE  ORGANIZATIONS SHALL BE EITHER INCORPORATED IN OR REGISTERED TO DO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15998-03-4
 A. 10694--A                         2
 
 BUSINESS AND SUCH NON-ELIGIBLE ORGANIZATIONS SHALL  BE  LOCATED  IN  THE
 STATE OF NEW YORK;
   (III)  BE  RENTED  AT A RATE OF NO MORE THAN TWENTY DOLLARS PER SQUARE
 FOOT PER YEAR AND THE BASE RENT SHALL BE  ADJUSTED  AT  A  RATE  NOT  TO
 EXCEED THREE PERCENT PER YEAR FOR THE TERM OF THE ARTS SPACE RESTRICTION
 PERIOD;
   (IV)  THE OWNER OF AN ELIGIBLE BUILDING PRIOR TO ENTERING INTO A LEASE
 OR RENTAL AGREEMENT WITH AN ELIGIBLE ARTS ORGANIZATION SHALL ENSURE THAT
 SUCH AFFORDABLE ARTS SPACE MEETS THE CONDITIONS NECESSARY TO  RECEIVE  A
 TEMPORARY CERTIFICATE OF OCCUPANCY AS DEFINED IN THE ADMINISTRATIVE CODE
 OF THE CITY OF NEW YORK;
   (V)  IF  THE TERM OF THE LEASE OR RENTAL AGREEMENT ENTERED INTO BY THE
 PROPERTY OWNER AND AN ELIGIBLE ARTS ORGANIZATION IS LESS THAN THE  BENE-
 FIT  PERIOD, THE BASE RENT FOR THE SUBSEQUENT TENANT SHALL BE EQUIVALENT
 TO THE BASE RENT OF THE INITIAL TENANT AS  ADJUSTED  ANNUALLY  FROM  THE
 START  DATE OF THE INITIAL LEASE AT A RATE OF NO MORE THAN THREE PERCENT
 PER YEAR; AND
   (VI) ANY LEASE OR RENTAL AGREEMENT ENTERED INTO BY THE PROPERTY  OWNER
 OF AN ELIGIBLE BUILDING AND AN ELIGIBLE ARTS ORGANIZATION IN ADDITION TO
 BEING  SUBJECT  TO THE REQUIREMENTS OF THIS SUBDIVISION SHALL BE SUBJECT
 TO ANY OTHER LAWS, RULES, AND REGULATIONS OF THE CITY OF NEW YORK.
   C. AN AFFORDABLE ARTS SPACE SHALL BE ENTITLED TO THE  FOLLOWING  BENE-
 FITS:
   (I)  FOR  ELIGIBLE  BUILDINGS WITH RENTAL AGREEMENTS ENTERED INTO WITH
 ELIGIBLE ARTS ORGANIZATIONS, FOR EVERY ONE DOLLAR PER  SQUARE  FOOT  PER
 YEAR  OF  RENT  LESS  THAN THE TWENTY DOLLAR PER SQUARE FOOT MAXIMUM PER
 YEAR, THE THIRTY-FIVE YEAR BENEFIT AS DEFINED IN THIS SECTION  SHALL  BE
 INCREASED  BY  ONE PERCENT FOR THE FIRST THIRTY YEARS OF THE RESTRICTION
 PERIOD AND  ONE  AND  ONE-HALF  PERCENT  FOR  SUBSEQUENT  YEARS  OF  THE
 RESTRICTION PERIOD;
   (II) FOR ELIGIBLE BUILDINGS WITH RENTAL AGREEMENTS FOR AFFORDABLE ARTS
 SPACE,  FOR  EVERY ONE DOLLAR PER SQUARE FOOT PER YEAR OF RENT LESS THAN
 THE TWENTY DOLLAR PER SQUARE FOOT MAXIMUM PER YEAR, THE TWENTY-FIVE YEAR
 BENEFIT AS DEFINED IN THIS SECTION SHALL BE INCREASED BY ONE PERCENT FOR
 THE FIRST TWENTY YEARS OF THE RESTRICTION PERIOD  AND  ONE  AND  A  HALF
 PERCENT FOR SUBSEQUENT YEARS OF THE RESTRICTION PERIOD;
   (III)  FOR  ELIGIBLE  BUILDINGS  WITH RENTAL AGREEMENTS FOR AFFORDABLE
 ARTS SPACE, FOR EVERY ONE DOLLAR PER SQUARE FOOT PER YEAR OF  RENT  LESS
 THAN THE TWENTY DOLLAR PER SQUARE FOOT MAXIMUM PER YEAR, THE THIRTY-FIVE
 YEAR  BENEFIT, THE THIRTY-YEAR BENEFIT, AND THE TWENTY-FIVE YEAR BENEFIT
 SHALL BE EXTENDED BY SIX MONTHS AT THE PREVIOUS YEAR'S EXEMPTION  AMOUNT
 UP TO FIVE ADDITIONAL YEARS; AND
   (IV) FOR ELIGIBLE BUILDINGS WITH RENTAL AGREEMENTS FOR AFFORDABLE ARTS
 SPACE  RENTED  BELOW  TEN DOLLARS PER SQUARE FOOT PER YEAR, THE BUILDING
 SHALL QUALIFY FOR AN EXEMPTION FROM REAL PROPERTY TAXES OF  ONE  HUNDRED
 PERCENT IN YEARS ONE THROUGH FIVE OF THE RESTRICTION PERIOD IF THE OWNER
 OF  THE  ELIGIBLE  BUILDING  PROVIDES  A TENANT IMPROVEMENT ALLOWANCE OF
 FIFTY DOLLARS PER SQUARE FOOT AND AN EXEMPTION FROM REAL PROPERTY  TAXES
 OF  ONE  HUNDRED  PERCENT  IN  YEARS ONE THROUGH TEN IF THE OWNER OF THE
 ELIGIBLE BUILDING PROVIDES A TENANT IMPROVEMENT ALLOWANCE OF ONE HUNDRED
 DOLLARS PER SQUARE FOOT.
   D. A RENTAL AGREEMENT FOR AFFORDABLE ARTS SPACE SHALL BE ENTERED  INTO
 WITHIN  ONE  YEAR  OF AN ELIGIBLE BUILDING RECEIVING A TEMPORARY CERTIF-
 ICATE OF OCCUPANCY FOR THE RESIDENTIAL SPACE OF THE  BUILDING.  BENEFITS
 UNDER  THIS  SUBDIVISION  SHALL  BE  RETROACTIVE  TO THE COMPLETION DATE
 PROVIDED ALL OTHER REQUIREMENTS OF THIS SUBDIVISION ARE MET.
 A. 10694--A                         3

   E. AN ELIGIBLE MULTIPLE DWELLING SHALL COMPLY  WITH  THE  REQUIREMENTS
 FOR  AFFORDABLE ARTS SPACE AS DEFINED BY THIS SECTION FOR THE ARTS SPACE
 RESTRICTION PERIOD.
   F.  THE ARTS SPACE RESTRICTION PERIOD SHALL BE THE LENGTH OF THE BENE-
 FIT AS DEFINED IN THIS SECTION, NOTWITHSTANDING ANY EARLIER  TERMINATION
 OR REVOCATION OF AHCC PROGRAM BENEFITS.
   §  3.  Subdivision 5 of section 467-m of the real property tax law, as
 added by section 2 of part R of chapter 56  of  the  laws  of  2024,  is
 amended to read as follows:
   5.  Application  of  benefit. Based on the certification of the agency
 certifying eligibility for AHCC  program  benefits,  the  department  of
 finance shall determine the amount of the exemption pursuant to subdivi-
 sions  two  [and],  four  AND FOUR-A of this section and shall apply the
 exemption to the assessed value of the eligible multiple dwelling.
   § 4. This act shall take effect immediately.