§ 421-b. Exemption of certain private dwellings, multiple dwellings
and improvements from local taxation; certain cases. 1. (a) Within a
city having a population of one million or more, private dwellings (land
and improvements) to be occupied as a residence for the first time,
whether newly constructed or resulting from the conversion of any
building or structure to a private dwelling, and existing private
dwellings previously occupied, reconstructed or improved to the extent
of at least forty percent of their assessed valuation without the
improvement, shall be exempt from all local and municipal taxes, other
than assessments for local improvements, during the tax year or years
next following the taxable status date or dates after commencement and
before completion of construction, reconstruction or conversion thereof,
but for no more than two years after commencement of such construction,
reconstruction or conversion, and shall be exempt from such local and
municipal taxes after the earlier of completion of such construction,
reconstruction or conversion or the end of such two year period, as
follows: two years of exemption from all such taxes; followed by one
year of exemption from seventy-five percent of such taxes; followed by
one year of exemption from sixty-two and one-half percent of such taxes;
followed by one year of exemption from fifty percent of such taxes;
followed by one year of exemption from thirty-seven and one-half percent
of such taxes; followed by one year of exemption from twenty-five
percent of such taxes; and followed by one year of exemption from twelve
and one-half percent of such taxes. Notwithstanding the foregoing
provisions of this paragraph: (i) exemption from local and municipal
taxes under this section shall not be available to property exempt from
such taxes under any other law; (ii) the tax lot (land and improvements)
upon which the private dwelling is constructed, reconstructed or
converted shall at all times be subject to local and municipal taxes in
an amount not less than the amount of local and municipal taxes that
would be payable thereon based upon the lesser of the assessed
valuation, during the tax year immediately preceding the tax year in
which such construction, reconstruction or conversion commenced or in
the case of new construction, the assessed valuation of the land
appearing on the assessment roll in the first year after completion of
construction; and (iii) in the event that a private dwelling, whether
owner occupied or not, is fully demolished and removed on or after
September first, two thousand four, the tax lot (land and improvements)
upon which such private dwelling was located shall not be eligible for
exemption from local and municipal taxes under this section for a period
of three years commencing upon the date of issuance of the demolition
and removal permit for such private dwelling.

(b) Within a city having a population of one million or more, multiple
dwellings (land and improvements) containing not more than four dwelling
units to be occupied as a residence for the first time, whether newly
constructed or resulting from the conversion of any building or
structure to a multiple dwelling, and existing multiple dwellings
containing not more than four dwelling units previously occupied,
reconstructed or improved to the extent of at least forty percent of
their assessed valuation without the improvement, shall be exempt from
all local and municipal taxes, other than assessments for local
improvements, during the tax year or years next following the taxable
status date or dates after commencement and before completion of
construction, reconstruction or conversion thereof, but for no more than
two years after commencement of such construction, reconstruction or
conversion, and shall be exempt from such local and municipal taxes
after the earlier of completion of such construction, reconstruction or
conversion or the end of such two year period, as follows: two years of
exemption from all such taxes; followed by one year of exemption from
seventy-five percent of such taxes; followed by one year of exemption
from sixty-two and one-half percent of such taxes; followed by one year
of exemption from fifty percent of such taxes; followed by one year of
exemption from thirty-seven and one-half percent of such taxes; and
followed by one year of exemption from twenty-five percent of such
taxes; and followed by one year of exemption from twelve and one-half
percent of such taxes. Notwithstanding the foregoing provisions of this
paragraph: (i) exemption from local and municipal taxes under this
section shall not be available to property exempt from such taxes under
any other law; (ii) the tax lot (land and improvements) upon which the
multiple dwelling is constructed, reconstructed or converted shall at
all times be subject to local and municipal taxes in an amount not less
than the amount of local and municipal taxes that would be payable
thereon based upon the lesser of the assessed valuation, during the tax
year immediately preceding the tax year in which such construction,
reconstruction or conversion commenced or in the case of new
construction, the assessed valuation of the land appearing on the
assessment roll in the first year after completion of construction;
(iii) multiple dwellings (land and improvements) shall not be eligible
for exemption from local and municipal taxes under this section unless
such multiple dwellings are developed in a governmentally assisted
project, as defined in rules promulgated by the local housing agency;
and (iv) such multiple dwellings are constructed, reconstructed or
converted on real property that has been (A) acquired by the federal
government as the result of the foreclosure of a mortgage loan insured
by the federal government and (B) conveyed by the federal government to
an owner approved by the local housing agency for the purpose of
rehabilitation in accordance with an agreement between the owner of the
real property and the federal government.

2. (a) For purposes of this section: "private dwelling" shall mean an
owner occupied building or structure, with the land on which the same is
constructed, intended for residential use and occupancy by one or more
families living independently of each other with separate cooking
facilities, which is not a multiple dwelling within the meaning of the
multiple dwelling law, and the construction, reconstruction or
conversion of which (i) is commenced after July first, nineteen hundred
seventy-eight and before July first, nineteen hundred eighty-two and is
completed no later than April first, nineteen hundred eighty-four; (ii)
is commenced on or after July first, nineteen hundred eighty-two and
before July first, nineteen hundred eighty-six and is completed no later
than July first, nineteen hundred eighty-eight; (iii) is commenced on or
after July first, nineteen hundred eighty-six and before July first,
nineteen hundred ninety and is completed no later than July first,
nineteen hundred ninety-two; (iv) is commenced on or after July first,
nineteen hundred ninety and before July first, nineteen hundred
ninety-four and is completed no later than July first, nineteen hundred
ninety-six; (v) is commenced on or after July first, nineteen hundred
ninety-four and before July first, nineteen hundred ninety-eight and is
completed no later than July first, two thousand; (vi) is commenced on
or after July first, nineteen hundred ninety-eight and before July
first, two thousand two and is completed no later than July first, two
thousand four; or (vii) is commenced on or after July first, two
thousand two and before July first, two thousand six and is completed no
later than July first, two thousand eleven.

(b) For purposes of this section: "multiple dwelling" shall mean an
owner occupied building or structure, with the land on which the same is
constructed, which is a multiple dwelling within the meaning of section
four of the multiple dwelling law, and the construction, reconstruction
or conversion of which is commenced on or after July first, two thousand
two and before July first, two thousand six and is completed no later
than July first, two thousand eight.

(c) Construction or reconstruction of, or conversion to, a private
dwelling or multiple dwelling shall be deemed to have commenced when the
agency or department of the city having jurisdiction has issued a permit
for construction work and such work has begun in good faith in
accordance with such permit; construction, reconstruction or conversion
shall be deemed to have been completed when the agency or department of
the city having jurisdiction has issued a temporary or permanent
certificate of occupancy under which occupancy of the private dwelling
or multiple dwelling for residential use may lawfully begin or the
reconstruction has been finally accepted and approved.

(d) For the purposes of this section: "local housing agency" shall
have the same meaning as the term "agency" under section five hundred
two of the general municipal law, except that the term shall mean the
department of housing preservation and development if there is such a
department in such city.

(e) Upon issuance of a violation by an agency, department or bureau of
the city of New York for an illegal occupancy, the finance department
shall revoke the tax exemption thereunder. The owner shall pay the city,
with interest, the amount of taxes from which such owner had been
exempted. Such amount, if unpaid, shall become a lien against the
property.

3. (a) Applications for exemption under this section shall be filed
with the assessors between February first and March fifteenth of the
calendar year and, based on the certification of the local housing
agency pursuant to this section, the assessors shall certify to the
collecting officer the amount of exemption from local and municipal
taxes. No such application shall be accepted by the assessors unless
accompanied by a certificate of the local housing agency certifying
eligibility for exemption pursuant to this section.

(b) The local housing agency may promulgate rules and regulations to
carry out the provisions of this section and may require payment of a
reasonable filing fee, and in the case of an application involving a
dwelling which has been reconstructed or improved a fee not to exceed
ten dollars for the certification of such local housing agency under
this subdivision.

(c) At any time after two years of exemption from taxation pursuant to
this section, the local housing agency may certify to the assessors and
the collecting officer that a private dwelling or multiple dwelling is
not being used for residential purposes and upon the filing of such
certification with the assessors and the collecting officer, exemption
from taxation under this section shall terminate.