§ 421-c. Exemption of certain new multiple dwellings from local
taxation. 1. The provisions of this section shall apply to each town,
village or city with a population of less than one million which has
declared an emergency in accordance with the provisions of the emergency
tenant protection act of nineteen seventy-four and which adopts a
resolution making the provisions of this section applicable to such
town, village or city. The owner of housing accommodations in a newly
constructed building, which would be subject to the provisions of such
act except for the fact that the building was completed on or after
January first, nineteen hundred seventy-four, may file a declaration, in
a form suitable for recording, with the rent guidelines board subjecting
such housing accommodations to the provisions of said act.

2. Such new residential buildings shall be exempt from all taxes
imposed by a municipal corporation including those imposed by a school
district, other than assessments for local improvements, during
construction and so long as used for residence purposes for a period not
to exceed ten years in the aggregate after the taxable status date
immediately following the completion thereof, consisting of two years of
full exemption followed by two years of exemption from eighty percent of
such taxation, followed by two years of exemption from sixty percent of
such taxation, followed by two years of exemption from forty percent of
such taxation, followed by two years of exemption from twenty percent of
such taxation; provided that taxes shall be paid during any such period
at least in the amount of the taxes paid on such land and any
improvements thereon during the tax year preceding the commencement of
such construction and that exemption from taxes shall not be availed of
concurrently under any other law. To be eligible for exemption under
this section such construction shall take place on vacant, predominantly
vacant or under-utilized land, or on land improved with a non-conforming
use. The initial legal regulated rents to be charged upon initial
occupancy after construction aided by exemption under this section shall
be at least fifteen percent less than the rents prevailing for
comparable newly constructed residential units in the same area or any
comparable area; and notwithstanding the provisions of the emergency
tenant protection act of nineteen seventy-four, the rents shall be fully
subject to regulation under such act for a period of ten years or for
the period such act is in effect in the municipality in which the
building is situate, whichever is shorter, at the expiration of which
such rent shall be deregulated, unless immediately prior to such
expiration such rents would have been regulated by the provisions of any
law other than pursuant to this section, in which event such rents shall
continue subject to such regulation to the same extent and in the same
manner as if this section had never applied thereto. Any additional
taxes levied against the building as a result of the phase-out of the
exemption provided by this section may be charged by the owner to the
tenants on an equitable basis without seeking the approval of the local
rent guidelines board. For the purposes of this section, construction
shall be deemed commenced when excavation has begun in good faith on the
basis of approved construction plans.

3. Application forms for exemption under this section shall be filed
with the assessor between February first and March fifteenth, and, based
on the certification of the local rent guidelines board, the assessors
shall certify to the collecting officer the amount of taxes to be
abated. No such application shall be accepted by the assessors unless
accompanied by a certificate of the local rent guidelines board
certifying the applicant's eligibility pursuant to subdivision one of
this section. Requests to these local rent guidelines boards for
certification shall be accompanied by a ten-year projection of the rents
based on current levels of operating costs and showing to the
satisfaction of such board a relative stability of rents over such
period reflecting to the extent that this is practicable, and averaging
of the tax benefits of this section in the interests of the tenants.
The state division of housing and community renewal may promulgate rules
and regulations to carry out the provisions of this section, not
inconsistent with the provisions hereof.