* § 421-p. Exemption of newly-constructed or converted rental multiple
dwellings. 1. (a) A city, town or village may, by local law, provide for
the exemption of rental multiple dwellings constructed or converted in a
benefit area designated in such local law from taxation and special ad
valorem levies, 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 "rental multiple dwelling" means a structure, other than
a hotel, consisting of ten or more dwelling units, where all of the
units are rented for residential purposes, and twenty-five percent of
such units, upon initial rental and upon each subsequent rental
following a vacancy during the benefit period, are affordable to and
restricted to occupancy by individuals or families whose household
income does not exceed a weighted average of no less than sixty percent
of the area median income and no more than eighty percent of the area
median income, adjusted for family size, at the time that such
households initially occupy such dwelling units, provided further that
all of the income restricted units upon initial rental and upon each
subsequent rental following a vacancy during the restriction period or
extended restriction period, as applicable, shall be affordable to and
restricted to occupancy by individuals or families whose household
income does not exceed one hundred percent of the area median income,
adjusted for family size, at the time that such households initially
occupy such dwelling units. Provided further, that any local law
authorizing an exemption pursuant to this section may provide for the
area median income weighted average within the amounts set forth in this
paragraph. Such restriction period shall be in effect coterminous with
the benefit period, provided, however, that the tenant or tenants in an
income restricted dwelling unit at the time such restriction period ends
shall have the right to lease renewals at the income restricted level
until such time as such tenant or tenants permanently vacate the
dwelling unit.

2. Eligible newly-constructed or converted rental multiple dwellings
in a designated benefit area shall be wholly exempt from taxation while
under construction, subject to a maximum of three years. Such property
shall then be exempt for an additional period of twenty-five years,
provided, that the exemption percentage during such additional period of
twenty-five years shall begin at ninety-six percent and shall decrease
by four percent each year thereafter. Provided, however:

(a) Taxes shall be paid during the exemption period in an amount at
least equal to the taxes paid on such land and any improvements thereon
during the tax year preceding the commencement of such exemption.

(b) 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, any new
construction shall take place on vacant, predominantly vacant or
underutilized 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. The provisions of this subdivision shall not apply
to any new conversions undertaken pursuant to this section.

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 a newly constructed or converted property which is
used partially as a rental multiple dwelling and partially for
commercial or other purposes, the portion of the property that is used
as a rental multiple dwelling shall be eligible for the exemption
authorized by this section if:

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

(b) The rental units are affordable to individuals or families as
determined according to the criteria set forth in paragraph (c) of
subdivision one of this section; and

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

6. (a) For the purposes of this subdivision, the following terms shall
have the following meanings:

(i) "Applicant" shall mean an applicant for the exemption authorized
by this section and/or any successor to such applicant.

(ii) "Covered building service employer" shall mean any applicant
and/or any employer of building service employees for such applicant
including, but not limited to, a property management company or
contractor.

(iii) "Building service employee" shall mean any person who is
regularly employed at, and performs work in connection with the care or
maintenance 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.

(iv) "Fiscal officer" shall mean the commissioner of labor.

(v) "Eligible multiple dwelling" shall mean any newly-constructed or
converted rental multiple dwellings that receive benefits pursuant to
this section.

(b) All building service employees employed by the covered building
service employer at the eligible multiple dwelling shall receive the
applicable prevailing wage in accordance with article nine of the labor
law for the duration of the benefit period, regardless of whether such
benefits are revoked or terminated. Such applicable prevailing wage
shall in no case be lower than the prevailing wage provided to building
service employees for work performed within the respective county under
the collective bargaining agreement covering the largest number of
hourly building service employees employed at residential buildings
within such county in each job classification established by the
commissioner of labor. The commissioner of labor shall determine the
applicable prevailing wage rates and prevailing rate of fringe benefits
for each job classification consistent with the corresponding job
classifications covered by such collective bargaining agreements. To
determine the applicable supplement benefit rate, the commissioner of
labor shall identify the applicable hourly, weekly or monthly cost to an
employer as specified under the applicable collective bargaining
agreement of providing such supplements.

(c) (i) 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: (A) 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; (B)
to institute and conduct inspections at the site of the work or
elsewhere; (C) to examine the books, documents and records pertaining to
the wages paid to, and the hours of work performed by, building service
employees; (D) 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; (E) to
make a classification 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; (F) to require the applicant to file with the
fiscal officer a record of the wages actually paid to the building
service employees and of their hours of work; (G) to delegate any of the
foregoing powers to such fiscal officer's deputy or other authorized
representative; (H) to promulgate rules as such fiscal officer 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 (I) to prescribe appropriate sanctions for
failure to comply with the provisions of this subdivision.

(ii) 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 subdivision,
such fiscal officer shall present evidence of such non-compliance to the
village, town, or city that enacted a local law pursuant to this
section, or to any municipal agency or entity identified in such local
law.

(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 new construction or
conversion is carried out with the substantial assistance of grants,
loans or subsidies 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 ensure compliance with the requirements of this
subdivision or is exempt in accordance with paragraph (d) of this
subdivision. Upon the approval of the village, town, or city that
enacted a local law pursuant to this section, or of any municipal agency
or entity identified in such local law, 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 ensure compliance with the requirements
of this subdivision.

(f) The village, town, or city that enacted a local law pursuant to
this section, or any municipal agency or entity identified in such local
law shall annually publish a list of all eligible sites subject to the
requirements of this subdivision and the affadavits required pursuant to
paragraph (e) of this subdivision.

(g) If a covered building service employer has committed three
violations of the requirements of paragraph (b) of this subdivision with
respect to the same eligible multiple dwelling within a five-year
period, the village, town, or city that enacted a local law pursuant to
this section, or any municipal agency or entity identified in such local
law may revoke any benefits associated with such eligible multiple
dwelling under this section. For purposes of this paragraph, a
"violation" of paragraph (b) of this subdivision will be deemed a
finding by the fiscal officer that a covered building service employer
has failed to comply with paragraph (b) of this subdivision and has
failed to cure the deficiency within three months of such finding.
Provided, however, that after a second such violation, the applicant
shall be notified that any further violation may result in the
revocation of benefits under this section and that the fiscal officer
shall publish on its website a list of all applicants with two
violations as defined in this paragraph. If benefits are terminated or
revoked for failure to comply with this subdivision all of the
affordable 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.

7. The exemption authorized by this section shall not be available in
a city with a population of one million or more.

8. Any recipient of the exemption authorized by this section or their
designee shall certify compliance with the provisions of this section
under penalty of perjury, at such time or times and in such manner as
may be prescribed in the local law adopted by the city, town or village
pursuant to paragraph (a) of subdivision one of this section, or by a
subsequent local law. Such city, town or village may establish such
procedures as it deems necessary for monitoring and enforcing compliance
of an eligible building with the provisions of this section.

* NB There are two § 421-p's