S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7758
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced  by  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  abatement  for alterations and improvements to multiple dwellings
   for purposes of preserving habitability in affordable 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. (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, AS OF THE FILING OF AN APPLICATION FOR A CERTIF-
 ICATE OF ELIGIBILITY AND REASONABLE COST, HAS A RENT  AT  OR  BELOW  THE
 AFFORDABLE RENT.
   (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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08932-03-3
 A. 7758                             2
              

 
   (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
   (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;
 A. 7758                             3
 
   (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.
   (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-
 A. 7758                             4
 
 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 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  THIS SUBDIVISION, OR AS ANY SUCH STATUTE IS AMENDED
 THEREAFTER, TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESS-
 ING SUBSTANTIALLY THE SAME SUBJECT MATTER.
   (30) "RESTRICTION PERIOD" SHALL MEAN, NOTWITHSTANDING ANY  TERMINATION
 OR  REVOCATION  OF REHABILITATION PROGRAM BENEFITS PRIOR TO SUCH PERIOD,
 FIFTEEN YEARS FROM THE INITIAL RECEIPT OF  REHABILITATION  BENEFITS,  OR
 SUCH  ADDITIONAL PERIOD OF TIME AS MAY BE IMPOSED PURSUANT TO CLAUSE (A)
 OF SUBPARAGRAPH FIVE OF PARAGRAPH (E) OF THIS SUBDIVISION.
   (31) "SUBSTANTIAL GOVERNMENTAL ASSISTANCE" SHALL MEAN  GRANTS,  LOANS,
 OR  SUBSIDIES  FROM  ANY  FEDERAL,  STATE, OR LOCAL GOVERNMENT 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.
   (32) "SUBSTANTIAL INTEREST" SHALL MEAN AN OWNERSHIP  INTEREST  OF  TEN
 PERCENT OR MORE.
   (B) ABATEMENT. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER SUBDIVISION
 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, UNTIL AND INCLUDING JUNE THIRTIETH, TWO THOU-
 SAND TWENTY-FIVE, TO ADOPT AND AMEND LOCAL LAWS OR  ORDINANCES  ALLOWING
 FOR AN ABATEMENT OF REAL PROPERTY TAXES ON AN ELIGIBLE BUILDING IN WHICH
 ELIGIBLE 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
 A. 7758                             5
 
 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  BEGINNING  WITH  THE  FIRST
 QUARTERLY  TAX  BILL  IMMEDIATELY  FOLLOWING THE DATE OF ISSUANCE OF THE
 CERTIFICATE OF ELIGIBILITY AND REASONABLE COST.
   (C) 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.
   (D)  APPLICATION.    (1) ANY SUCH LOCAL LAW OR ORDINANCE SHALL REQUIRE
 THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST
 PURSUANT TO THIS SUBDIVISION BE MADE AFTER THE COMPLETION DATE AND ON OR
 BEFORE THE LATER OF (A) FOUR MONTHS FROM  THE  EFFECTIVE  DATE  OF  SUCH
 LOCAL LAW OR ORDINANCE; OR (B) 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:
 A. 7758                             6
 
   (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  ABATEMENT  PURSUANT
 TO PARAGRAPH (B) 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
 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.
   (E) 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 TWO 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-
 A. 7758                             7
 
 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)  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.
   (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.
   (C)  THE  OWNER  OF  SUCH  ELIGIBLE  RENTAL  BUILDING  SHALL WAIVE THE
 COLLECTION OF ANY MAJOR CAPITAL IMPROVEMENT 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 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.
   (3) 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.
   (4) NO DWELLING UNITS WITHIN SUCH ELIGIBLE RENTAL  BUILDING  SHALL  BE
 CONVERTED TO COOPERATIVE OR CONDOMINIUM OWNERSHIP DURING THE RESTRICTION
 PERIOD.
   (5)  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
   (D) TERMINATE OR REVOKE ANY REHABILITATION PROGRAM BENEFITS IN ACCORD-
 ANCE WITH PARAGRAPH (M) OF THIS SUBDIVISION.
   (F) 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.
   (G)  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-
 A. 7758                             8

 SIBLE FOR REAL PROPERTY TAX ASSESSMENT SHALL CERTIFY THE AMOUNT OF TAXES
 TO  BE ABATED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION AND PURSUANT
 TO SUCH CERTIFICATE OF ELIGIBILITY AND REASONABLE COST PROVIDED  BY  THE
 LOCAL HOUSING AGENCY.
   (H)  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.
   (I) ADDITIONAL LIMITATIONS ON ELIGIBILITY.   ANY  SUCH  LOCAL  LAW  OR
 ORDINANCE 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 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.
   (J) 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
 REQUIRED TO PAY TEN TIMES THE ACTUAL COST OF ANY  ADDITIONAL  INSPECTION
 NEEDED TO VERIFY SUCH ELIGIBLE CONSTRUCTION.
   (K)  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
 A. 7758                             9
 
 SUBMITTING ANY NEW APPLICATION FOR REHABILITATION  PROGRAM  BENEFITS  ON
 BEHALF OF ANY ELIGIBLE BUILDING FOR A PERIOD NOT TO EXCEED FIVE YEARS.
   (L)  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.
   (M)  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 MUTUAL COMPANY REGULATORY AGREEMENT OR  MUTUAL  REDE-
 VELOPMENT  COMPANY  REGULATORY  AGREEMENT  ENTERED  INTO THEREUNDER, MAY
 RESULT IN TERMINATION OR REVOCATION OF ANY REHABILITATION PROGRAM  BENE-
 FITS  RETROACTIVE TO THE COMMENCEMENT THEREOF. SUCH TERMINATION OR REVO-
 CATION 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 MUTUAL COMPANY REGULATORY AGREEMENT
 OR MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT.
   (N)  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
 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.
   (O) 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,  OR  ANY  RULES  AND  REGULATIONS  PROMULGATED 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 BUILDING  AS  THE  BASIS  FOR  FURTHER  ENFORCEMENT  ACTION.
 A. 7758                            10
 
 NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, AN ACTION BY A TENANT OF AN
 ELIGIBLE RENTAL BUILDING UNDER THIS PARAGRAPH SHALL BE COMMENCED  WITHIN
 SIX YEARS FROM THE DATE OF THE LATEST VIOLATION.
   (P)  APPOINTMENT OF RECEIVER. IN ADDITION TO THE REMEDIES FOR NON-COM-
 PLIANCE PROVIDED FOR IN SUBPARAGRAPH  FIVE  OF  PARAGRAPH  (E)  OF  THIS
 SUBDIVISION,  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 EFFECT 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 ACCORD-
 ANCE WITH APPLICABLE LOCAL LAWS OR ORDINANCES.
   (Q) 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.