§ 423. Phase out of exemption for redevelopment company projects upon
the cessation of the tax exemption granted pursuant to contract. (1)
After the expiration of any tax exemption granted a redevelopment
project pursuant to section one hundred twenty-five of the private
housing finance law, which exemption is not extended pursuant to such
law, that part of the value of the property which was exempt from
certain taxation for local purposes by reason of such grant, shall
thereafter be exempt from taxation for local purposes, other than
assessments for local improvement, commencing upon the expiration of the
tax exemption granted pursuant to such section as follows: during the
first year after such expiration, the taxes which shall be payable shall
be the taxes which were payable during the last year of the grant of
exemption plus one tenth of the difference between the taxes which were
payable during such prior year and the taxes which would otherwise be
payable during such first year absent this section; during the second
year after such expiration, the taxes which shall be payable shall be
the taxes which were payable during the first year after such expiration
plus one-ninth of the difference between the taxes which were payable
during such first year and the taxes which would otherwise be payable
during such second year absent this section; during the third year after
such expiration, the taxes which shall be payable shall be the taxes
which were payable during the second year after such expiration plus
one-eighth of the difference between the taxes which were payable during
such second year and the taxes which would otherwise be payable during
such third year absent this section; during the fourth year after such
expiration, the taxes which shall be payable shall be the taxes which
were payable during the third year after such expiration plus
one-seventh of the difference between the taxes which were payable
during such third year and the taxes which would otherwise be payable
during such fourth year absent this section; during the fifth year after
such expiration, the taxes which shall be payable shall be the taxes
which were payable during the fourth year after such expiration plus
one-sixth of the difference between the taxes which were payable during
such fourth year and the taxes which would otherwise be payable during
such fifth year absent this section; during the sixth year after such
expiration, the taxes which shall be payable shall be the taxes which
were payable during the fifth year after such expiration plus one-fifth
of the difference between the taxes which were payable during such fifth
year and the taxes which would otherwise be payable during such sixth
year absent this section; during the seventh year after such expiration,
the taxes which shall be payable shall be the taxes which were payable
during the sixth year after such expiration plus one-fourth of the
difference between the taxes which were payable during such sixth year
and the taxes which would otherwise be payable during such seventh year
absent this section; during the eighth year after such expiration, the
taxes which shall be payable shall be the taxes which were payable
during the seventh year after such expiration plus one-third of the
difference between the taxes which were payable during such seventh year
and the taxes which would otherwise be payable during such eighth year
absent this section; during the ninth year after such expiration, the
taxes which shall be payable shall be the taxes which were payable
during the eighth year after such expiration plus one-half of the
difference between the taxes which were payable during such eighth year
and the taxes which would otherwise be payable during such ninth year
absent this section; during the tenth year after such expiration, the
taxes which shall be payable shall be the taxes otherwise payable. (2)
Any provision of law to the contrary notwithstanding, any local laws or
ordinances in respect of the regulation and control of residential rents
and evictions adopted pursuant to the local emergency housing rent
control act shall be applicable to all dwelling accommodations in a
property described in subdivision one throughout such additional
exemption period whether or not such dwelling accommodations become
vacant during such period, in the same manner that such local laws or
ordinances would be applicable to dwelling accommodations which (i) were
completed after February one, nineteen hundred forty-seven and for which
a certificate of occupancy was obtained prior to March ten, nineteen
hundred sixty-nine, and (ii) did not become vacant after the thirtieth
day of June, nineteen hundred seventy-one, provided that the last rental
set forth under a rental agreement in force relating to a dwelling
accommodation in such project immediately prior to the expiration of the
tax exemption granted pursuant to the private housing finance law, shall
continue, and the owner of the property in which such accommodations are
situate may increase such rentals.

(a) in each year by an amount not more than the increases in taxes,
payable on such project by such owner over those paid in the year prior
to the expiration of the tax exemption granted pursuant to the private
housing finance law, allocated to such dwelling accommodation on a per
room basis based on the room count set forth in the contract with a
municipality originally granting the tax exemption under the private
housing finance law, and

(b) by an amount not more than the difference between the average
rental per room per month last authorized by the local legislative body
pursuant to the private housing finance law, and the average rental per
room per month actually collected during the last year such project was
exempt under such law, multiplied by the room count for such dwelling
accommodation as set forth in such contract with the municipality, as
well as percentage increases thereon which percentages are the same as
authorized under such local laws and ordinances and generally applicable
to subsequent rental agreements in dwelling accommodations in other
multiple dwellings as well as any other increases authorized by law.

(3) Notwithstanding any provision of this section to the contrary,
with respect to the real property of a mutual redevelopment project
located in a city having a population of one million or more, the tax
exemption provided in subdivision one of this section shall not apply in
any year where the total period of tax exemption granted pursuant to
section one hundred twenty-five of the private housing finance law and
subdivision one of this section would exceed sixty years.