§ 421-m. Exemption of certain new or substantially rehabilitated
multiple dwellings from local taxation. 1. (a) A city, town or village
may, by local law, provide for the exemption of multiple dwellings
constructed or substantially rehabilitated in a benefit area designated
in such local law from taxation and special ad valorem levies, but not
special assessments, as provided in this section. Subsequent to the
adoption of such a local law, any other municipal corporation in which
the designated benefit area is located may likewise exempt such property
from its taxation and special ad valorem levies by local law, or in the
case of a school district, by resolution.

(b) As used in this section, the term "benefit area" means the area
within a city, town or village, designated by local law, to which an
exemption, established pursuant to this section, applies.

(c) The term "substantial rehabilitation" means all work necessary to
bring a property into compliance with all applicable laws and
regulations including but not limited to the installation, replacement
or repair of heating, plumbing, electrical and related systems and the
elimination of all hazardous and immediately hazardous violations in the
structure in accordance with state and local laws and regulations of
state and local agencies. Substantial rehabilitation may also include
reconstruction or work to improve the habitability or prolong the useful
life of the property; provided substantial rehabilitation shall not
include ordinary maintenance or repair.

(d) The term "multiple dwelling" means a dwelling, other than a hotel,
which is to be occupied or is occupied as the residence or home of three
or more families living independently of one another, whether such
dwelling is rented or owned as a cooperative or condominium.

2. (a) Eligible new or substantially rehabilitated multiple dwellings
in a designated benefit area shall be exempt according to the following
schedule:

CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF CERTAIN

MULTIPLE DWELLINGS
During construction or Exemption
substantial rehabilitation (maximum
three years) 100%
Following completion of work year:
1 through 12 100%
13-14 80%
15-16 60%
17-18 40%
19-20 20%

(b) 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
exemption. Provided further that no other exemption may be granted
concurrently to the same improvements under any other section of law.

3. To be eligible for exemption under this section:

(a) Such construction or substantial rehabilitation shall take place
on vacant, predominantly vacant or under-utilized land, or on land
improved with a non-conforming use or on land containing one or more
substandard or structurally unsound dwellings, or a dwelling that has
been certified as unsanitary by the local health agency.

(b) Such construction or substantial rehabilitation was commenced on
or after the effective date of the local law, ordinance or resolution
described in subdivision one of this section, but no later than June
fifteenth, two thousand nineteen.

(c) At least twenty percent of the units shall be affordable to
individuals or families of low and moderate income whose incomes at the
time of initial occupancy do not exceed ninety percent of the area
median income adjusted for family size and the individual or family
shall pay in rent or monthly carrying charges no more than thirty
percent of their adjusted gross income as reported in their federal
income tax return, or would be reported if such return were required,
less such personal exemptions and deductions and medical expenses as are
actually taken by the taxpayer, as verified according to procedures
established by the state division of housing and community renewal. Such
procedures shall be published through notice in the state register
without further action required for the promulgation of regulations
pursuant to the state administrative procedure act.

(d) Such construction or substantial rehabilitation is carried out
with the assistance of grants, loans or subsidies for the construction
or substantial rehabilitation of affordable housing from any federal,
state or local agency or instrumentality thereof.

4. Application for exemption under this section shall be made on a
form prescribed by the commissioner and filed with the assessor on or
before the applicable taxable status date.

5. In the case of property which is used partially as a multiple
dwelling and partially for commercial or other purposes, the property
shall be eligible for the exemption authorized by this section if:

(a) The square footage of the portion used as a multiple dwelling
represents at least fifty percent of the square footage of the entire
property;

(b) At least twenty percent of the units are affordable to individuals
or families of low and moderate income, as determined according to the
criteria set forth in paragraph (c) of subdivision three of this
section; and

(c) The requirements of this section are otherwise satisfied with
respect to the portion of the property used as a multiple dwelling.

6. The exemption authorized by this section shall not be available in
a jurisdiction to which the provisions of section four hundred
twenty-one-a or four hundred twenty-one-c of this article are
applicable.

7. A city, town or village providing an exemption pursuant to the
authority of this section shall develop an income monitoring and
compliance plan to meet the criteria of paragraph (c) of subdivision
three of this section and such plan shall be reviewed, evaluated and
approved by the state division of housing and community renewal as a
condition of providing such exemption. Such plan shall include an annual
certification that the multiple dwelling receiving an exemption meets
the requirements of this section. Such certification shall be provided
to the assessor and the state division of housing and community renewal.
If such requirements are not met, then the multiple dwelling shall not
qualify for the exemption in that year.