NY State Senate Bill 2023-S7888

Senate Bill S7888

2023-2024 Legislative Session

Provides for an exemption from real property taxation of certain multiple dwellings in certain municipalities

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to housing, construction and community development

2023-S7888 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Labor Law
Laws Affected:: Amd §224-a, Lab L; add §467-m, RPT L

2023-S7888 (ACTIVE) - Summary

Provides for an exemption from real property taxation of certain multiple dwellings in certain municipalities for affordable housing from commercial conversions.

2023-S7888 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7888

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the labor law and the real property tax law, in relation
to the exemption from real property taxation of certain multiple dwell-
ings in certain municipalities

 
PURPOSE:

Provides an opt-in program for an exemption from real property taxation
of certain multiple dwellings in certain municipalities.

 
SUMMARY OF PROVISIONS:

Section 1. Amends paragraph a of subdivision 3 of section 224-a of the
labor 2 law, as added by section 1 of part FFF of chapter 58 of the laws
of 3 2020, by adding Benefits under section four hundred twenty-one-a or
four hundred sixty-seven-m of the real property tax law.

Section 2. Amends the real property tax law by adding a new section,

467-m, exemption from local real property taxation of certain multiple
dwellings in certain municipalities. This section contains the bill's
definitions, the benefits a municipality receives should it choose to
opt-in to the program, required assessments for participating owners of
multi-dwelling properties, a limitation on benefits for non-residential
space, the method of determination for application of the benefits,
detailed affordability requirements, compliance mandates for building
service employees and fiscal officers, a limitation on concurrent
exemptions and abatements, prohibitions on voluntary renunciation or
termination, ability for the agency to terminate or revoke benefits,
enforcement powers, ability for an owner to opt-in for multiple lots,
the application process, filing fees, rules, and finally penalties for
violations of the affordability requirements.

Section 3. Sets the effective date.

 
JUSTIFICATION:

New York State faces an acute housing crisis. Where the average US rent-
to-income ratio (RTI) is 30%, New York City-metro area tenants have an
RTI of 64.2%-the most rent-burdened of any housing market in the coun-
try.(1) Further, New York continues to lose population to states with
less expensive housing, and fewer new housing units are being built in
New York than in neighboring states.(2) Conversely, vacancy rates in the
commercial real estate market are at a historical high, both
nationally(3) and locally.(4) A strong approach to addressing both of
these issues is facilitating conversion of commercial properties to
housing.

This bill will empower local governments to provide an incentive for
owners of eligible multiple dwelling properties to provide affordable
housing when New Yorkers need it most. In addition to more affordable
rent, this bill provides extra protections from rent-increase and
eviction to renters by preventing participating property owners from
withdrawing without agency approval. Also built into this bill are
detailed compliance requirements, oversight, and prohibitions against

property owners taking advantage of concurrent exemptions and abatements
to guarantee they pay their fair share.

Many municipalities seek to be part of the solution to the housing
crisis. Giving local governments the ability to offer a tax exemption on
a voluntary, opt-in basis is to support the conversion of commercial
buildings to multiple dwellings is fundamental to preserving the dream
that is living in New York.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

NA

 
EFFECTIVE DATE:
This act shall take effect immediately.
(1)https://cre.moodysanalytics.com/insights/market-insights/
q3-2023-housing-affordability-update-the-us-isstill-rent- burdened-and-
surging-insurance-premiums-could-pile-on/
(2)https://fiscalpolicyorg/latest-census-data-confirms-new-york-
losing-residents-to-neighboring-states-with-1 ower-housing-costs
(3)https://www.cbre.com/insights/reports/2023-us-real-estate- market-
outlook-midyear-review
(4)https://www.nmrk.com/storage-nmrk/uploads/fields/pdf-market-
reports/3Q23-Westchester-County-OfficeMarket-Report.pdf

2023-S7888 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7888
 
                             I N  S E N A T E
 
                              January 3, 2024
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN ACT to amend the labor law and the real property tax law, in relation
   to  the  exemption  from  real  property  taxation of certain multiple
   dwellings in certain municipalities

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph a of subdivision 3 of section 224-a of the labor
 law, as added by section 1 of part FFF of chapter  58  of  the  laws  of
 2020, is amended to read as follows:
   a.  Benefits  under  section four hundred twenty-one-a OR FOUR HUNDRED
 SIXTY-SEVEN-M of the real property tax law;
   § 2. The real property tax law is amended  by  adding  a  new  section
 467-m to read as follows:
   § 467-M. EXEMPTION FROM LOCAL REAL PROPERTY TAXATION OF CERTAIN MULTI-
 PLE  DWELLINGS  IN CERTAIN MUNICIPALITIES.  1. DEFINITIONS. FOR PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   A. "AFFORDABLE HOUSING FROM COMMERCIAL CONVERSIONS TAX INCENTIVE BENE-
 FITS" HEREINAFTER REFERRED TO AS "AHCC PROGRAM BENEFITS", SHALL MEAN THE
 EXEMPTION FROM  REAL  PROPERTY  TAXATION  AUTHORIZED  PURSUANT  TO  THIS
 SECTION.
   B.  "AFFORDABILITY  REQUIREMENT"  SHALL  MEAN THAT WITHIN ANY ELIGIBLE
 MULTIPLE DWELLING: (I) NOT LESS THAN  TWENTY  PERCENT  OF  THE  DWELLING
 UNITS  ARE  AFFORDABLE HOUSING UNITS; (II) NOT LESS THAN FIVE PERCENT OF
 THE DWELLING UNITS ARE AFFORDABLE HOUSING FORTY PERCENT UNITS; (III) THE
 WEIGHTED AVERAGE OF ALL INCOME BANDS FOR ALL OF THE  AFFORDABLE  HOUSING
 UNITS  DOES  NOT  EXCEED  SEVENTY  PERCENT  OF  THE  AREA MEDIAN INCOME,
 ADJUSTED FOR FAMILY SIZE; (IV) THERE ARE NO MORE THAN THREE INCOME BANDS
 FOR ALL OF THE AFFORDABLE HOUSING UNITS; AND  (V)  NO  INCOME  BAND  FOR
 AFFORDABLE  HOUSING UNITS EXCEEDS ONE HUNDRED PERCENT OF THE AREA MEDIAN
 INCOME, ADJUSTED FOR FAMILY SIZE.
   C. "AFFORDABLE HOUSING FORTY PERCENT UNIT" SHALL MEAN A DWELLING  UNIT
 THAT:  (I)  IS  SITUATED WITHIN THE ELIGIBLE MULTIPLE DWELLING FOR WHICH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13774-01-3
 S. 7888                             2
 
 AHCC PROGRAM BENEFITS ARE GRANTED; AND (II) UPON INITIAL RENTAL AND UPON
 EACH SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE RESTRICTION  PERI-
 OD, IS AFFORDABLE TO AND RESTRICTED TO OCCUPANCY BY INDIVIDUALS OR FAMI-
 LIES  WHOSE  HOUSEHOLD  INCOME DOES NOT EXCEED FORTY PERCENT OF THE AREA
 MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, AT THE TIME THAT SUCH HOUSEHOLD
 INITIALLY OCCUPIES SUCH DWELLING UNIT.
   D. "AFFORDABLE HOUSING UNIT" SHALL MEAN, COLLECTIVELY AND  INDIVIDUAL-
 LY:  (I)  AN  AFFORDABLE  HOUSING FORTY PERCENT UNIT; AND (II) ANY OTHER
 UNIT THAT MEETS THE AFFORDABILITY REQUIREMENT UPON INITIAL OCCUPANCY AND
 UPON EACH SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING  THE  RESTRICTION
 PERIOD,  AND IS AFFORDABLE TO AND RESTRICTED TO OCCUPANCY BY INDIVIDUALS
 OR FAMILIES WHOSE HOUSEHOLD INCOME DOES  NOT  EXCEED  THE  INCOME  BANDS
 ESTABLISHED IN CONJUNCTION WITH SUCH AFFORDABILITY REQUIREMENT.
   E.  "AGENCY"  SHALL  MEAN THE LOCAL HOUSING AGENCY, PROVIDED, HOWEVER,
 WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, "AGENCY" SHALL
 MEAN THE NEW YORK CITY DEPARTMENT OF HOUSING PRESERVATION  AND  DEVELOP-
 MENT.
   F. "APPLICATION" SHALL MEAN AN APPLICATION FOR AHCC PROGRAM BENEFITS.
   G.  "BUILDING SERVICE EMPLOYEE" SHALL MEAN ANY PERSON WHO IS REGULARLY
 EMPLOYED AT, AND PERFORMS WORK IN CONNECTION WITH THE  CARE  OR  MAINTE-
 NANCE  OF, AN ELIGIBLE MULTIPLE DWELLING, INCLUDING, BUT NOT LIMITED TO,
 A WATCHMAN, GUARD, DOORMAN, BUILDING CLEANER, PORTER, HANDYMAN, JANITOR,
 GARDENER, GROUNDSKEEPER,  ELEVATOR  OPERATOR  AND  STARTER,  AND  WINDOW
 CLEANER,  BUT  NOT  INCLUDING  PERSONS REGULARLY SCHEDULED TO WORK FEWER
 THAN EIGHT HOURS PER WEEK AT SUCH ELIGIBLE MULTIPLE DWELLING.
   H. "COMMENCEMENT DATE" SHALL MEAN  THE  DATE  UPON  WHICH  THE  ACTUAL
 CONSTRUCTION OF THE ELIGIBLE CONVERSION LAWFULLY BEGINS IN GOOD FAITH.
   I.  "COMPLETION DATE" SHALL MEAN THE DATE UPON WHICH THE LOCAL DEPART-
 MENT OF BUILDINGS ISSUES THE FIRST TEMPORARY OR PERMANENT CERTIFICATE OF
 OCCUPANCY COVERING ALL RESIDENTIAL AREAS OF AN ELIGIBLE MULTIPLE  DWELL-
 ING.
   J.  "CONSTRUCTION  PERIOD"  SHALL  MEAN,  WITH RESPECT TO ANY ELIGIBLE
 MULTIPLE DWELLING, A PERIOD: (I) BEGINNING ON THE LATER OF THE COMMENCE-
 MENT DATE OR THREE YEARS BEFORE THE COMPLETION DATE; AND (II) ENDING  ON
 THE DAY PRECEDING THE COMPLETION DATE.
   K.  "DWELLING" OR "DWELLINGS" SHALL HAVE THE SAME MEANING AS SET FORTH
 IN SUBDIVISION FOUR OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   L. "ELIGIBLE CONVERSION" SHALL MEAN THE CONVERSION OF  A  NON-RESIDEN-
 TIAL BUILDING TO AN ELIGIBLE MULTIPLE DWELLING.
   M.  "ELIGIBLE  MULTIPLE  DWELLING"  SHALL  MEAN A MULTIPLE DWELLING IN
 WHICH: (I) ALL DWELLING UNITS INCLUDED IN ANY APPLICATION  ARE  OPERATED
 AS  RENTAL  HOUSING;  (II)  SIX OR MORE DWELLING UNITS HAVE BEEN CREATED
 THROUGH AN ELIGIBLE CONVERSION; (III) THE  COMMENCEMENT  DATE  IS  AFTER
 DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO AND ON OR BEFORE DECEMBER
 THIRTY-FIRST,  TWO  THOUSAND THIRTY-TWO; AND (IV) THE COMPLETION DATE IS
 ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND THIRTY-EIGHT.
   N. "FISCAL OFFICER" SHALL MEAN  THE  COMPTROLLER  OR  OTHER  ANALOGOUS
 OFFICER IN A MUNICIPALITY.
   O. "FLOOR AREA" SHALL MEAN THE HORIZONTAL AREAS OF THE SEVERAL FLOORS,
 OR ANY PORTION THEREOF, OF A DWELLING OR DWELLINGS, AND ACCESSORY STRUC-
 TURES  ON  A  LOT MEASURED FROM THE EXTERIOR FACES OF EXTERIOR WALLS, OR
 FROM THE CENTER LINE OF PARTY WALLS.
   P. "INCOME BAND" SHALL MEAN A PERCENTAGE OF THE  AREA  MEDIAN  INCOME,
 ADJUSTED FOR FAMILY SIZE, THAT IS A MULTIPLE OF TEN PERCENT.
   Q.  "MARKET  UNIT"  SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE MULTIPLE
 DWELLING OTHER THAN AN AFFORDABLE HOUSING UNIT.
 S. 7888                             3
 
   R. "MARKETING BAND" SHALL MEAN MAXIMUM RENT AMOUNTS RANGING FROM TWEN-
 TY PERCENT TO THIRTY PERCENT OF THE AREA MEDIAN INCOME OR  INCOME  BAND,
 RESPECTIVELY, THAT IS APPLICABLE TO A SPECIFIC AFFORDABLE HOUSING UNIT.
   S.  "MULTIPLE  DWELLING"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN
 SUBDIVISION SEVEN OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   T. "MUNICIPALITY" SHALL MEAN A COUNTY, CITY, TOWN OR VILLAGE.
   U. "NINETEEN-YEAR BENEFIT" SHALL MEAN: (I) FOR THE CONSTRUCTION  PERI-
 OD,  A  ONE HUNDRED PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER
 THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS;  (II)  FOR  THE  FIRST  FIFTEEN
 YEARS  OF  THE  RESTRICTION PERIOD, A THIRTY-FIVE PERCENT EXEMPTION FROM
 REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR  LOCAL  IMPROVEMENTS;
 (III)  FOR  THE SIXTEENTH YEAR OF THE RESTRICTION PERIOD, A TWENTY-EIGHT
 PERCENT EXEMPTION FROM REAL PROPERTY TAXATION,  OTHER  THAN  ASSESSMENTS
 FOR LOCAL IMPROVEMENTS; (IV) FOR THE SEVENTEENTH YEAR OF THE RESTRICTION
 PERIOD,  A  TWENTY-ONE  PERCENT  EXEMPTION  FROM REAL PROPERTY TAXATION,
 OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS; (V)  FOR  THE  EIGHTEENTH
 YEAR  OF  THE RESTRICTION PERIOD, A FOURTEEN PERCENT EXEMPTION FROM REAL
 PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR  LOCAL  IMPROVEMENTS;  AND
 (VI)  FOR THE NINETEENTH YEAR OF THE RESTRICTION PERIOD, A SEVEN PERCENT
 EXEMPTION FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR  LOCAL
 IMPROVEMENTS.
   V.  "NON-RESIDENTIAL  BUILDING" SHALL MEAN A STRUCTURE OR PORTION OF A
 STRUCTURE HAVING AT LEAST ONE FLOOR, A ROOF AND  AT  LEAST  THREE  WALLS
 ENCLOSING ALL OR MOST OF THE SPACE USED IN CONNECTION WITH THE STRUCTURE
 OR  PORTION  OF  THE STRUCTURE, WHICH HAS A CERTIFICATE OF OCCUPANCY FOR
 COMMERCIAL, MANUFACTURING OR OTHER NON-RESIDENTIAL USE FOR NOT LESS THAN
 NINETY PERCENT OF THE AGGREGATE FLOOR AREA OF SUCH STRUCTURE OR  PORTION
 OF  SUCH  STRUCTURE,  OR  OTHER  PROOF OF SUCH NON-RESIDENTIAL USE AS IS
 ACCEPTABLE TO THE AGENCY.
   W. "NON-RESIDENTIAL TAX LOT" SHALL  MEAN  A  TAX  LOT  THAT  DOES  NOT
 CONTAIN ANY DWELLING UNITS.
   X.  "RENT STABILIZATION" SHALL MEAN, COLLECTIVELY, THE RENT STABILIZA-
 TION 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 SECTION OR AS AMENDED THERE-
 AFTER, TOGETHER WITH ANY SUCCESSOR STATUTES  OR  REGULATIONS  ADDRESSING
 SUBSTANTIALLY THE SAME SUBJECT MATTER.
   Y.  "RESIDENTIAL  TAX LOT" SHALL MEAN A TAX LOT THAT CONTAINS DWELLING
 UNITS.
   Z.  "RESTRICTION  PERIOD"  SHALL  MEAN  A  PERIOD  COMMENCING  ON  THE
 COMPLETION DATE AND EXTENDING IN PERPETUITY, NOTWITHSTANDING ANY EARLIER
 TERMINATION OR REVOCATION OF AHCC PROGRAM BENEFITS.
   2.  BENEFIT.  IN  A MUNICIPALITY SUBSEQUENT TO THE EFFECTIVE DATE OF A
 LOCAL  LAW  ADOPTED  PURSUANT  TO  THIS  SECTION,  NOTWITHSTANDING   THE
 PROVISIONS OF ANY OTHER GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, A
 NEW  ELIGIBLE  MULTIPLE DWELLING, EXCEPT A HOTEL, THAT COMPLIES WITH THE
 PROVISIONS OF THIS SECTION SHALL BE EXEMPT FROM REAL PROPERTY  TAXATION,
 OTHER  THAN  ASSESSMENTS  FOR LOCAL IMPROVEMENTS, IN THE AMOUNTS AND FOR
 THE PERIODS SPECIFIED IN  THIS  SECTION,  PROVIDED  THAT  SUCH  ELIGIBLE
 MULTIPLE  DWELLING IS USED OR HELD OUT FOR USE FOR DWELLING PURPOSES.  A
 MUNICIPALITY MAY, BY LOCAL LAW, PROVIDE FOR THE EXEMPTION OF REAL  PROP-
 ERTY FROM TAXATION AS PROVIDED IN THIS SECTION. A COPY OF SUCH LOCAL LAW
 SHALL  BE  FILED  WITH THE COMMISSIONER AND THE ASSESSOR OF SUCH MUNICI-
 PALITY WHO PREPARES THE ASSESSMENT ROLL ON WHICH THE TAXES OF SUCH MUNI-
 CIPALITY ARE LEVIED.  AN ELIGIBLE MULTIPLE DWELLING THAT  MEETS  ALL  OF
 THE REQUIREMENTS OF THIS SECTION SHALL RECEIVE A NINETEEN-YEAR BENEFIT.
 S. 7888                             4
 
   3.  TAX PAYMENTS. IN ADDITION TO ANY OTHER AMOUNTS PAYABLE PURSUANT TO
 THIS SECTION, THE OWNER OF ANY ELIGIBLE MULTIPLE DWELLING RECEIVING AHCC
 PROGRAM BENEFITS SHALL PAY, IN EACH TAX YEAR IN WHICH SUCH AHCC  PROGRAM
 BENEFITS ARE IN EFFECT, ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
   4.  LIMITATION ON BENEFITS FOR NON-RESIDENTIAL SPACE. IF THE AGGREGATE
 FLOOR AREA OF COMMERCIAL, COMMUNITY FACILITY AND ACCESSORY USE SPACE  IN
 AN  ELIGIBLE  MULTIPLE  DWELLING EXCEEDS TWELVE PERCENT OF THE AGGREGATE
 FLOOR AREA IN SUCH ELIGIBLE MULTIPLE DWELLING, ANY AHCC PROGRAM BENEFITS
 SHALL BE REDUCED BY A PERCENTAGE EQUAL TO SUCH EXCESS.  IF  AN  ELIGIBLE
 MULTIPLE  DWELLING  CONTAINS  MULTIPLE  TAX LOTS, THE TAX ARISING OUT OF
 SUCH REDUCTION IN AHCC PROGRAM BENEFITS SHALL FIRST BE  APPORTIONED  PRO
 RATA  AMONG ANY NON-RESIDENTIAL TAX LOTS. AFTER ANY SUCH NON-RESIDENTIAL
 TAX LOTS ARE FULLY TAXABLE, THE REMAINDER OF THE TAX ARISING OUT OF SUCH
 REDUCTION IN AHCC PROGRAM BENEFITS, IF ANY,  SHALL  BE  APPORTIONED  PRO
 RATA  AMONG THE REMAINING RESIDENTIAL TAX LOTS. FOR THE PURPOSES OF THIS
 SECTION, ACCESSORY USE SPACE SHALL NOT INCLUDE HOME OCCUPATION SPACE  OR
 ACCESSORY  PARKING  SPACE  LOCATED NOT MORE THAN TWENTY-THREE FEET ABOVE
 THE CURB LEVEL.
   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 OF THIS SECTION AND SHALL APPLY THE EXEMPTION TO  THE
 ASSESSED VALUE OF THE ELIGIBLE MULTIPLE DWELLING.
   6.  AFFORDABILITY  REQUIREMENTS.  AN  ELIGIBLE MULTIPLE DWELLING SHALL
 COMPLY  WITH  THE  FOLLOWING  AFFORDABILITY  REQUIREMENTS   DURING   THE
 RESTRICTION PERIOD:
   A. ALL AFFORDABLE HOUSING UNITS IN AN ELIGIBLE MULTIPLE DWELLING SHALL
 SHARE  THE  SAME COMMON ENTRANCES AND COMMON AREAS AS RENTAL MARKET RATE
 UNITS IN SUCH ELIGIBLE MULTIPLE DWELLING AND SHALL NOT BE ISOLATED TO  A
 SPECIFIC  FLOOR  OR  AREA  OF  AN  ELIGIBLE  MULTIPLE  DWELLING.  COMMON
 ENTRANCES SHALL MEAN ANY MEANS OF INGRESS OR EGRESS  REGULARLY  USED  BY
 ANY  RESIDENT  OF A RENTAL DWELLING UNIT IN THE ELIGIBLE MULTIPLE DWELL-
 ING.
   B. UNLESS PREEMPTED BY THE REQUIREMENTS OF A FEDERAL, STATE  OR  LOCAL
 HOUSING PROGRAM, EITHER: (I) THE AFFORDABLE HOUSING UNITS IN AN ELIGIBLE
 MULTIPLE  DWELLING  SHALL  HAVE  A  UNIT  MIX PROPORTIONAL TO THE RENTAL
 MARKET UNITS; OR (II) AT LEAST FIFTY PERCENT OF THE  AFFORDABLE  HOUSING
 UNITS  IN  AN ELIGIBLE MULTIPLE DWELLING SHALL HAVE TWO OR MORE BEDROOMS
 AND NO MORE THAN TWENTY-FIVE PERCENT OF  THE  AFFORDABLE  HOUSING  UNITS
 SHALL HAVE LESS THAN ONE BEDROOM.
   C.  NOTWITHSTANDING ANY PROVISION OF RENT STABILIZATION TO THE CONTRA-
 RY: (I) ALL AFFORDABLE HOUSING UNITS SHALL REMAIN FULLY SUBJECT TO  RENT
 STABILIZATION  DURING  THE  RESTRICTION  PERIOD; AND (II) ANY AFFORDABLE
 HOUSING UNIT OCCUPIED BY A TENANT THAT HAS BEEN APPROVED BY  THE  AGENCY
 PRIOR TO THE AGENCY'S DENIAL OF AN ELIGIBLE MULTIPLE DWELLING'S APPLICA-
 TION  FOR  AHCC PROGRAM BENEFITS SHALL REMAIN SUBJECT TO RENT STABILIZA-
 TION UNTIL SUCH TENANT VACATES SUCH AFFORDABLE HOUSING UNIT.
   D. ALL RENT STABILIZATION REGISTRATIONS REQUIRED  TO  BE  FILED  SHALL
 CONTAIN  A  DESIGNATION  THAT SPECIFICALLY IDENTIFIES AFFORDABLE HOUSING
 UNITS CREATED PURSUANT TO THIS SECTION AS "AHCC PROGRAM AFFORDABLE HOUS-
 ING UNITS" AND SHALL CONTAIN AN EXPLANATION  OF  THE  REQUIREMENTS  THAT
 APPLY TO ALL SUCH AFFORDABLE HOUSING UNITS.
   E.  FAILURE  TO  COMPLY  WITH  THE PROVISIONS OF THIS SUBDIVISION THAT
 REQUIRE THE CREATION, MAINTENANCE, RENT  STABILIZATION  COMPLIANCE,  AND
 OCCUPANCY OF AFFORDABLE HOUSING UNITS SHALL RESULT IN REVOCATION OF AHCC
 PROGRAM BENEFITS.
 S. 7888                             5
 
   F.  NOTHING  IN  THIS  SECTION SHALL: (I) PROHIBIT THE OCCUPANCY OF AN
 AFFORDABLE HOUSING UNIT BY INDIVIDUALS OR FAMILIES WHOSE INCOME  AT  ANY
 TIME  IS  LESS  THAN THE MAXIMUM PERCENTAGE OF THE AREA MEDIAN INCOME OR
 INCOME BAND, AS APPLICABLE, ADJUSTED FOR FAMILY SIZE, SPECIFIED FOR SUCH
 AFFORDABLE  HOUSING  UNIT PURSUANT TO THIS SECTION; OR (II) PROHIBIT THE
 OWNER OF AN ELIGIBLE MULTIPLE  DWELLING  FROM  REQUIRING,  UPON  INITIAL
 RENTAL  OR  UPON  ANY  RENTAL  FOLLOWING A VACANCY, THE OCCUPANCY OF ANY
 AFFORDABLE HOUSING UNIT BY SUCH LOWER INCOME INDIVIDUALS OR FAMILIES.
   G. FOLLOWING ISSUANCE OF A TEMPORARY CERTIFICATE OF OCCUPANCY AND UPON
 EACH VACANCY THEREAFTER, AN AFFORDABLE HOUSING UNIT  SHALL  PROMPTLY  BE
 OFFERED  FOR  RENTAL  BY  INDIVIDUALS  OR FAMILIES WHOSE INCOME DOES NOT
 EXCEED THE MAXIMUM PERCENTAGE OF THE AREA MEDIAN INCOME OR INCOME  BAND,
 AS  APPLICABLE,  ADJUSTED FOR FAMILY SIZE, SPECIFIED FOR SUCH AFFORDABLE
 HOUSING UNIT PURSUANT TO THIS SECTION AND  WHO  INTEND  TO  OCCUPY  SUCH
 AFFORDABLE  HOUSING UNIT AS THEIR PRIMARY RESIDENCE. AN AFFORDABLE HOUS-
 ING UNIT SHALL NOT BE: (I) RENTED TO A CORPORATION, PARTNERSHIP OR OTHER
 ENTITY; OR (II) HELD OFF THE MARKET FOR A PERIOD LONGER THAN IS  REASON-
 ABLY NECESSARY TO PERFORM REPAIRS NEEDED TO MAKE SUCH AFFORDABLE HOUSING
 UNIT AVAILABLE FOR OCCUPANCY.
   H.  AN  AFFORDABLE  HOUSING  UNIT  SHALL NOT BE RENTED ON A TEMPORARY,
 TRANSIENT OR SHORT-TERM BASIS.  EVERY LEASE AND RENEWAL THEREOF  FOR  AN
 AFFORDABLE  HOUSING UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS, AT THE
 OPTION OF THE TENANT.
   I. AN AFFORDABLE HOUSING UNIT SHALL NOT BE CONVERTED TO COOPERATIVE OR
 CONDOMINIUM OWNERSHIP.
   J. THE AGENCY MAY ESTABLISH BY RULE SUCH REQUIREMENTS  AS  THE  AGENCY
 DEEMS  NECESSARY  OR  APPROPRIATE  FOR:  (I) THE MARKETING OF AFFORDABLE
 HOUSING UNITS, BOTH UPON INITIAL OCCUPANCY AND UPON  ANY  VACANCY;  (II)
 MONITORING COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVISION; AND (III)
 THE  ESTABLISHMENT OF MARKETING BANDS FOR AFFORDABLE HOUSING UNITS. SUCH
 REQUIREMENTS MAY INCLUDE, BUT NEED NOT BE LIMITED TO, RETAINING A  MONI-
 TOR  APPROVED  BY  THE  AGENCY AND PAID FOR BY THE OWNER OF THE ELIGIBLE
 MULTIPLE DWELLING.
   K. NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO  THE  CONTRARY,  A
 MARKET  UNIT  SHALL  NOT BE SUBJECT TO RENT STABILIZATION UNLESS, IN THE
 ABSENCE OF AHCC PROGRAM BENEFITS, THE UNIT  WOULD  BE  SUBJECT  TO  RENT
 STABILIZATION.
   7.  BUILDING  SERVICE  EMPLOYEES. A. FOR THE PURPOSES OF THIS SUBDIVI-
 SION, "APPLICANT" SHALL MEAN AN APPLICANT FOR AHCC PROGRAM BENEFITS, ANY
 SUCCESSOR TO SUCH APPLICANT, OR ANY EMPLOYER OF BUILDING SERVICE EMPLOY-
 EES FOR SUCH APPLICANT INCLUDING, BUT NOT LIMITED TO, A PROPERTY MANAGE-
 MENT COMPANY OR CONTRACTOR.
   B. ALL BUILDING SERVICE EMPLOYEES EMPLOYED BY  THE  APPLICANT  AT  THE
 ELIGIBLE  MULTIPLE DWELLING SHALL RECEIVE THE APPLICABLE PREVAILING WAGE
 FOR THE DURATION OF THE  NINETEEN-YEAR  BENEFIT  PERIOD,  REGARDLESS  OF
 WHETHER SUCH BENEFITS ARE REVOKED OR TERMINATED.
   C.  THE  FISCAL OFFICER SHALL HAVE THE POWER TO ENFORCE THE PROVISIONS
 OF THIS SUBDIVISION. IN ENFORCING SUCH PROVISIONS,  THE  FISCAL  OFFICER
 SHALL HAVE THE POWER: (I) TO INVESTIGATE OR CAUSE AN INVESTIGATION TO BE
 MADE  TO  DETERMINE THE PREVAILING WAGES FOR BUILDING SERVICE EMPLOYEES,
 AND IN MAKING SUCH INVESTIGATION, THE FISCAL OFFICER  MAY  UTILIZE  WAGE
 AND FRINGE BENEFIT DATA FROM VARIOUS SOURCES, INCLUDING, BUT NOT LIMITED
 TO,  DATA  AND  DETERMINATIONS  OF  FEDERAL, STATE OR OTHER GOVERNMENTAL
 AGENCIES; PROVIDED, HOWEVER, THAT THE PROVISION OF A DWELLING UNIT SHALL
 NOT BE CONSIDERED WAGES OR A  FRINGE  BENEFIT;  (II)  TO  INSTITUTE  AND
 CONDUCT INSPECTIONS AT THE SITE OF THE WORK OR ELSEWHERE; (III) TO EXAM-
 S. 7888                             6

 INE  THE  BOOKS,  DOCUMENTS AND RECORDS PERTAINING TO THE WAGES PAID TO,
 AND THE HOURS OF WORK PERFORMED BY, BUILDING SERVICE EMPLOYEES; (IV)  TO
 HOLD  HEARINGS  AND,  IN  CONNECTION  THEREWITH, TO ISSUE SUBPOENAS, THE
 ENFORCEMENT  OF  WHICH  SHALL BE REGULATED BY THE CIVIL PRACTICE LAW AND
 RULES, ADMINISTER OATHS AND EXAMINE WITNESSES; (V) TO MAKE A CLASSIFICA-
 TION BY CRAFT, TRADE OR OTHER GENERALLY RECOGNIZED OCCUPATIONAL CATEGORY
 OF THE BUILDING SERVICE EMPLOYEES AND TO DETERMINE WHETHER SUCH WORK HAS
 BEEN PERFORMED BY THE BUILDING SERVICE EMPLOYEES IN SUCH CLASSIFICATION;
 (VI) TO REQUIRE THE APPLICANT TO FILE WITH THE FISCAL OFFICER  A  RECORD
 OF  THE  WAGES  ACTUALLY  PAID BY SUCH APPLICANT TO THE BUILDING SERVICE
 EMPLOYEES AND OF THEIR HOURS OF WORK; (VII) TO DELEGATE ANY OF THE FORE-
 GOING POWERS TO HIS OR HER DEPUTY OR  OTHER  AUTHORIZED  REPRESENTATIVE;
 (VIII) TO PROMULGATE RULES AS HE OR SHE SHALL CONSIDER NECESSARY FOR THE
 PROPER  EXECUTION  OF  THE DUTIES, RESPONSIBILITIES AND POWERS CONFERRED
 UPON HIM OR HER BY THE PROVISIONS  OF  THIS  SUBDIVISION;  AND  (IX)  TO
 PRESCRIBE   APPROPRIATE   SANCTIONS  FOR  FAILURE  TO  COMPLY  WITH  THE
 PROVISIONS OF THIS SUBDIVISION. FOR EACH VIOLATION  OF  PARAGRAPH  B  OF
 THIS SUBDIVISION, THE FISCAL OFFICER MAY REQUIRE THE PAYMENT OF (A) BACK
 WAGES  AND FRINGE BENEFITS; (B) LIQUIDATED DAMAGES UP TO THREE TIMES THE
 AMOUNT OF THE BACK WAGES AND FRINGE  BENEFITS  FOR  WILLFUL  VIOLATIONS;
 AND/OR  (C) REASONABLE ATTORNEYS' FEES. IF THE FISCAL OFFICER FINDS THAT
 THE APPLICANT HAS FAILED TO COMPLY WITH THE PROVISIONS OF THIS  SUBDIVI-
 SION,  HE  OR  SHE  SHALL PRESENT EVIDENCE OF SUCH NON-COMPLIANCE TO THE
 AGENCY.
   D. PARAGRAPH B OF THIS SUBDIVISION SHALL NOT BE APPLICABLE TO:  (I) AN
 ELIGIBLE MULTIPLE DWELLING CONTAINING LESS THAN THIRTY  DWELLING  UNITS;
 OR  (II)  AN  ELIGIBLE  MULTIPLE  DWELLING  WHOSE ELIGIBLE CONVERSION IS
 CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF GRANTS, LOANS  OR  SUBSI-
 DIES  PROVIDED  BY  A  FEDERAL,  STATE  OR  LOCAL GOVERNMENTAL AGENCY OR
 INSTRUMENTALITY PURSUANT TO A PROGRAM FOR THE DEVELOPMENT OF  AFFORDABLE
 HOUSING.
   E.  THE  APPLICANT SHALL SUBMIT A SWORN AFFIDAVIT WITH ITS APPLICATION
 CERTIFYING THAT IT SHALL COMPLY WITH THE REQUIREMENTS OF  THIS  SUBDIVI-
 SION  OR  IS  EXEMPT IN ACCORDANCE WITH PARAGRAPH D OF THIS SUBDIVISION.
 UPON THE AGENCY'S APPROVAL OF SUCH APPLICATION, THE APPLICANT WHO IS NOT
 EXEMPT IN ACCORDANCE WITH PARAGRAPH D OF THIS SUBDIVISION  SHALL  SUBMIT
 ANNUALLY  A  SWORN  AFFIDAVIT  TO  THE FISCAL OFFICER CERTIFYING THAT IT
 SHALL COMPLY WITH THE REQUIREMENTS OF THIS SUBDIVISION.
   8. CONCURRENT EXEMPTIONS OR ABATEMENTS. AN ELIGIBLE MULTIPLE  DWELLING
 RECEIVING  AHCC PROGRAM BENEFITS SHALL NOT RECEIVE ANY EXEMPTION FROM OR
 ABATEMENT OF REAL PROPERTY TAXATION UNDER ANY OTHER LAW.
   9.  VOLUNTARY  RENUNCIATION  OR   TERMINATION.   NOTWITHSTANDING   THE
 PROVISIONS  OF  ANY  GENERAL,  SPECIAL  OR LOCAL LAW TO THE CONTRARY, AN
 OWNER SHALL NOT BE ENTITLED TO VOLUNTARILY RENOUNCE  OR  TERMINATE  AHCC
 PROGRAM  BENEFITS  UNLESS  THE  AGENCY  AUTHORIZES  SUCH RENUNCIATION OR
 TERMINATION IN CONNECTION WITH  THE  COMMENCEMENT  OF  A  TAX  EXEMPTION
 PURSUANT  TO  THE  PRIVATE  HOUSING  FINANCE LAW OR SECTION FOUR HUNDRED
 TWENTY-C OF THIS TITLE.
   10. TERMINATION OR REVOCATION. THE AGENCY MAY TERMINATE OR REVOKE AHCC
 PROGRAM BENEFITS FOR NONCOMPLIANCE WITH THIS SECTION. ALL OF THE AFFORD-
 ABLE HOUSING UNITS SHALL REMAIN SUBJECT TO RENT  STABILIZATION  AND  ALL
 OTHER  REQUIREMENTS  OF THIS SECTION FOR THE DURATION OF THE RESTRICTION
 PERIOD, REGARDLESS OF WHETHER SUCH  BENEFITS  HAVE  BEEN  TERMINATED  OR
 REVOKED.
   11.  POWERS  CUMULATIVE.  THE  ENFORCEMENT  PROVISIONS OF THIS SECTION
 SHALL NOT BE EXCLUSIVE, AND ARE IN ADDITION TO ANY OTHER  RIGHTS,  REME-
 S. 7888                             7
 
 DIES  OR  ENFORCEMENT  POWERS SET FORTH IN ANY OTHER LAW OR AVAILABLE AT
 LAW OR IN EQUITY.
   12.  MULTIPLE  TAX  LOTS.  IF  AN  ELIGIBLE MULTIPLE DWELLING CONTAINS
 MULTIPLE TAX LOTS, AN APPLICATION MAY BE SUBMITTED WITH RESPECT  TO  ONE
 OR  MORE  OF  SUCH  TAX LOTS. THE AGENCY SHALL DETERMINE ELIGIBILITY FOR
 AHCC PROGRAM BENEFITS BASED UPON THE TAX LOTS INCLUDED IN SUCH  APPLICA-
 TION  AND  BENEFITS  FOR  EACH  SUCH ELIGIBLE MULTIPLE DWELLING SHALL BE
 BASED UPON THE COMPLETION DATE OF EACH SUCH MULTIPLE DWELLING.
   13. APPLICATIONS. A. THE APPLICATION  WITH  RESPECT  TO  ANY  ELIGIBLE
 MULTIPLE  DWELLING  SHALL  BE  FILED WITH THE AGENCY NO EARLIER THAN THE
 COMPLETION DATE AND NOT LATER THAN ONE YEAR AFTER THE COMPLETION DATE OF
 SUCH ELIGIBLE MULTIPLE DWELLING.
   B. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL,  SPECIAL,  OR  LOCAL
 LAW TO THE CONTRARY, THE AGENCY MAY REQUIRE BY RULE THAT APPLICATIONS BE
 FILED ELECTRONICALLY.
   C.  THE  AGENCY  MAY RELY ON CERTIFICATION BY AN ARCHITECT OR ENGINEER
 SUBMITTED BY AN APPLICANT IN CONNECTION WITH THE FILING OF  AN  APPLICA-
 TION.  A  FALSE  CERTIFICATION  BY  SUCH  ARCHITECT OR ENGINEER SHALL BE
 DEEMED TO BE PROFESSIONAL  MISCONDUCT  PURSUANT  TO  SECTION  SIXTY-FIVE
 HUNDRED  NINE  OF  THE  EDUCATION LAW.   ANY ARCHITECT OR ENGINEER FOUND
 GUILTY OF SUCH MISCONDUCT UNDER THE  PROCEDURES  PRESCRIBED  IN  SECTION
 SIXTY-FIVE  HUNDRED  TEN  OF  THE  EDUCATION LAW SHALL BE SUBJECT TO THE
 PENALTIES PRESCRIBED IN SECTION SIXTY-FIVE HUNDRED ELEVEN OF THE  EDUCA-
 TION  LAW  AND  SHALL THEREAFTER BE INELIGIBLE TO SUBMIT A CERTIFICATION
 PURSUANT TO THIS SECTION.
   D. SUCH APPLICATION SHALL ALSO CERTIFY THAT ALL TAXES, WATER  CHARGES,
 AND  SEWER  RENTS  CURRENTLY  DUE AND OWING ON THE PROPERTY WHICH IS THE
 SUBJECT OF THE APPLICATION HAVE BEEN PAID OR ARE CURRENTLY BEING PAID IN
 TIMELY INSTALLMENTS PURSUANT TO A WRITTEN AGREEMENT WITH THE  DEPARTMENT
 OF FINANCE OR OTHER APPROPRIATE AGENCY.
   14.  FILING  FEE.  THE AGENCY MAY REQUIRE A FILING FEE OF NO LESS THAN
 THREE THOUSAND DOLLARS PER DWELLING UNIT IN CONNECTION WITH ANY APPLICA-
 TION, EXCEPT THAT THE AGENCY MAY PROMULGATE RULES:
   A. IMPOSING A LESSER FEE  FOR  AN  ELIGIBLE  MULTIPLE  DWELLING  WHOSE
 ELIGIBLE  CONVERSION  IS  CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF
 GRANTS, LOANS OR SUBSIDIES PROVIDED BY A FEDERAL, STATE OR LOCAL GOVERN-
 MENTAL AGENCY OR INSTRUMENTALITY PURSUANT TO A PROGRAM FOR THE  DEVELOP-
 MENT OF AFFORDABLE HOUSING; AND
   B.  REQUIRING  A  PORTION  OF  THE  FILING  FEE  TO  BE  PAID UPON THE
 SUBMISSION OF THE INFORMATION THE AGENCY REQUIRES IN ADVANCE OF  APPROV-
 ING  THE COMMENCEMENT OF THE MARKETING PROCESS FOR SUCH ELIGIBLE CONVER-
 SION.
   15. RULES. EXCEPT AS PROVIDED IN SUBDIVISION SEVEN  OF  THIS  SECTION,
 THE  AGENCY  SHALL  HAVE THE SOLE AUTHORITY TO ENFORCE THE PROVISIONS OF
 THIS SECTION AND MAY PROMULGATE RULES TO CARRY  OUT  THE  PROVISIONS  OF
 THIS SECTION.
   16.  PENALTIES FOR VIOLATIONS OF AFFORDABILITY REQUIREMENTS. A.  ON OR
 AFTER THE EXPIRATION DATE OF THE NINETEEN-YEAR BENEFIT, THE  AGENCY  MAY
 IMPOSE,  AFTER  NOTICE AND AN OPPORTUNITY TO BE HEARD, A PENALTY FOR ANY
 VIOLATION BY AN ELIGIBLE MULTIPLE DWELLING OF THE AFFORDABILITY REQUIRE-
 MENTS OF SUBDIVISION SIX OF THIS SECTION.
   B. A PENALTY IMPOSED UNDER THIS SUBDIVISION SHALL  BE  COMPUTED  AS  A
 PERCENTAGE  OF THE CAPITALIZED VALUE OF ALL AHCC PROGRAM BENEFITS ON THE
 ELIGIBLE MULTIPLE DWELLING, CALCULATED AS OF THE FIRST YEAR  THAT  BENE-
 FITS  WERE GRANTED, NOT TO EXCEED ONE THOUSAND PERCENT. THE AGENCY SHALL
 S. 7888                             8
 
 ESTABLISH A SCHEDULE AND METHOD OF CALCULATION OF SUCH PENALTIES  PURSU-
 ANT TO SUBDIVISION FIFTEEN OF THIS SECTION.
   C.  A  PENALTY IMPOSED UNDER THIS SUBDIVISION SHALL BE IMPOSED AGAINST
 THE OWNER OF THE ELIGIBLE MULTIPLE DWELLING AT THE  TIME  THE  VIOLATION
 OCCURRED,  EVEN  IF  SUCH  OWNER  NO  LONGER OWNS SUCH ELIGIBLE MULTIPLE
 DWELLING AT THE TIME OF THE AGENCY'S DETERMINATION.
   D. A PERSON OR ENTITY WHO FAILS TO PAY A PENALTY IMPOSED  PURSUANT  TO
 THIS  SUBDIVISION  SHALL BE GUILTY OF A MISDEMEANOR PUNISHABLE BY IMPRI-
 SONMENT NOT TO EXCEED SIX MONTHS.
   § 3. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.