§ 421-pp. Exemption of newly converted or constructed fully income
restricted 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) As used in this section, the term "rental multiple dwelling" means
a structure, other than a hotel, consisting of ten or more dwelling
units, where all but a maximum of two of the units are rented for
residential purposes, and all of such units, upon initial rental and
upon each subsequent rental following a vacancy during the restriction
period or extended restriction period, as applicable, is 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. The two residential units that are not
income restricted must be occupied by superintendents, caretakers,
managers or other employees to whom the space is provided as part or all
of their compensation without payment of rent and who are employed for
the purpose of rendering services in connection with the premises of
which the housing accommodation is a part. In the event no unit is
provided or rented to such an employee, all units in the building must
be income restricted pursuant to this paragraph. 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 thirty years. Provided,
however:

(a) Taxes shall be paid during the exemption period in an amount to be
determined by the local law providing the exception pursuant to this
section, provided, however, that amount shall be no greater than ten per
centum of the shelter rent of the eligible rental multiple dwelling
exempted pursuant to this section.

(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 newly constructed property which is used partially
as a rental multiple dwelling and partially for commercial or other
purposes, the portion of the newly constructed 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. The exemption authorized by this section shall not be available in
a city with a population of one million or more.

7. 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.