§ 467-m. Exemption from local real property taxation of certain
multiple dwellings in a city having a population of one million or more.
1. Definitions. For purposes of this section, the following terms shall
have the following meanings:

a. "Affordable housing from commercial conversions tax incentive
benefits" hereinafter referred to as "AHCC program benefits", shall mean
the exemption from real property taxation authorized pursuant to this
section.

b. "Affordability requirement" shall mean that within any eligible
multiple dwelling: (i) not less than twenty-five percent of the dwelling
units are affordable housing units; (ii) not less than five percent of
the dwelling units are affordable housing forty percent units; (iii) the
weighted average of all income bands for all of the affordable housing
units does not exceed eighty percent of the area median income, adjusted
for family size; (iv) there are no more than three income bands for all
of the affordable housing units; and (v) no income band for affordable
housing units exceeds one hundred percent of the area median income,
adjusted for family size.

c. "Affordable housing forty percent unit" shall mean a dwelling unit
that: (i) is situated within the eligible multiple dwelling for which
AHCC program benefits are granted; and (ii) upon initial rental and upon
each subsequent rental following a vacancy during the restriction
period, is affordable to and restricted to occupancy by individuals or
families whose household income does not exceed forty percent of the
area median income, adjusted for family size, at the time that such
household initially occupies such dwelling unit.

d. "Affordable housing unit" shall mean, collectively and
individually: (i) an affordable housing forty percent unit; and (ii)
any other unit that meets the affordability requirement upon initial
rental and upon each subsequent rental following a vacancy during the
restriction period, and is affordable to and restricted to occupancy by
individuals or families whose household income does not exceed the
income bands established in conjunction with such affordability
requirement.

e. "Agency" shall mean the New York city department of housing
preservation and development.

f. "Application" shall mean an application for AHCC program benefits.

g. "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.

h. "Commencement date" shall mean, with respect to an eligible
conversion, the date upon which a permit is issued by the local
department of buildings for alterations that require the issuance of a
new certificate of occupancy, provided that such alterations constitute
an eligible conversion.

i. "Completion date" shall mean the date upon which the local
department of buildings issues the first temporary or permanent
certificate of occupancy covering all residential areas of an eligible
multiple dwelling.

j. "Construction period" shall mean, with respect to any eligible
multiple dwelling, a period: (i) beginning on the later of the
commencement date or three years before the completion date; and (ii)
ending on the day preceding the completion date.

k. "Dwelling" or "dwellings" shall have the same meaning as set forth
in subdivision four of section four of the multiple dwelling law.

l. "Eligible conversion" shall mean the conversion of a
non-residential building, except a hotel or other class B multiple
dwelling, to an eligible multiple dwelling.

m. "Eligible multiple dwelling" shall mean a multiple dwelling which
was subject to an eligible conversion in which: (i) all dwelling units
included in any application are operated as rental housing; (ii) six or
more dwelling units have been created through an eligible conversion;
(iii) the commencement date is after December thirty-first, two thousand
twenty-two and on or before June thirtieth, two thousand thirty-one; and
(iv) the completion date is on or before December thirty-first, two
thousand thirty-nine.

n. "Fiscal officer" shall mean the comptroller or other analogous
officer in a city having a population of one million or more.

o. "Floor area" shall mean the horizontal areas of the several floors,
or any portion thereof, of a dwelling or dwellings, and accessory
structures on a lot measured from the exterior faces of exterior walls,
or from the center line of party walls.

p. "Income band" shall mean a percentage of the area median income,
adjusted for family size, that is a multiple of ten percent.

q. "Manhattan prime development area" shall mean any tax lot now
existing or hereafter created which is located entirely south of 96th
street in the borough of Manhattan.

r. "Market unit" shall mean a dwelling unit in an eligible multiple
dwelling other than an affordable housing unit.

s. "Marketing band" shall mean maximum rent amounts ranging from
twenty percent to thirty percent of the area median income or income
band, respectively, that is applicable to a specific affordable housing
unit.

t. "Multiple dwelling" shall have the same meaning as set forth in
subdivision seven of section four of the multiple dwelling law.

u. "Non-residential building" shall mean a structure or portion of a
structure, except a hotel or other class B multiple dwelling, having at
least one floor, a roof and at least three walls enclosing all or most
of the space used in connection with the structure or portion of the
structure, which has a certificate of occupancy for commercial,
manufacturing or other non-residential use for not less than ninety
percent of the aggregate floor area of such structure or portion of such
structure, or other proof of such non-residential use as is acceptable
to the agency.

v. "Non-residential tax lot" shall mean a tax lot that does not
contain any dwelling units.

w. "Rent stabilization" shall mean, collectively, the rent
stabilization law of nineteen hundred sixty-nine, the rent stabilization
code, and the emergency tenant protection act of nineteen seventy-four,
all as in effect as of the effective date of this section or as amended
thereafter, together with any successor statutes or regulations
addressing substantially the same subject matter.

x. "Residential tax lot" shall mean a tax lot that contains dwelling
units.

y. "Restriction period" shall mean a period commencing on the
completion date and extending in perpetuity, notwithstanding any earlier
termination or revocation of AHCC program benefits.

z. "Thirty-five year benefit shall mean: (i) for the construction
period, a one hundred percent exemption from real property taxation,
other than assessments for local improvements; (ii) for the first thirty
years of the restriction period; (A) within the Manhattan prime
development area, a ninety percent exemption from real property
taxation, other than assessments for local improvements; and (B) outside
of the Manhattan prime development area, a sixty-five percent exemption
from real property taxation, other than assessments for local
improvements; (iii) for the thirty-first year of the restriction period,
(A) within the Manhattan prime development area, an eighty percent
exemption from real property taxation, other than assessments for local
improvements; and (B) outside of the Manhattan prime development area, a
fifty percent exemption from real property taxation, other than
assessments for local improvements; (iv) for the thirty-second year of
the restriction period, (A) within the Manhattan prime development area,
a seventy percent exemption from real property taxation, other than
assessments for local improvements; and (B) outside of the Manhattan
prime development area, a forty percent exemption from real property
taxation, other than assessments for local improvements; (v) for the
thirty-third year of the restriction period, (A) within the Manhattan
prime development area, a sixty percent exemption from real property
taxation, other than assessments for local improvements; and (B) outside
of the Manhattan prime development area, a thirty percent exemption from
real property taxation, other than assessments for local improvements;
(vi) for the thirty-fourth year of the restriction period; (A) within
the Manhattan prime development area, a fifty percent exemption from
real property taxation, other than assessments for local improvements;
and (B) outside of the Manhattan prime development area, a twenty
percent exemption from real property taxation, other than assessments
for local improvements; and (vii) for the thirty-fifth year of the
restriction period, (A) within the Manhattan prime development area, a
forty percent exemption from real property taxation, other than
assessments for local improvements; and (B) outside of the Manhattan
prime development area, a ten percent exemption from real property
taxation, other than assessments for local improvements.

aa. "Thirty year benefit" shall mean: (i) for the construction period,
a one hundred percent exemption from real property taxation, other than
assessments for local improvements; (ii) for the first twenty-five years
of the restriction period, (A) within the Manhattan prime development
area, a ninety percent exemption from real property taxation, other than
assessments for local improvements; and (B) outside of the Manhattan
prime development area, a sixty-five percent exemption from real
property taxation, other than assessments for local improvements; (iii)
for the twenty-sixth year of the restriction period, (A) within the
Manhattan prime development area, an eighty percent exemption from real
property taxation, other than assessments for local improvements; and
(B) outside of the Manhattan prime development area, a fifty percent
exemption from real property taxation, other than assessments for local
improvements; (iv) for the twenty-seventh year of the restriction
period, (A) within the Manhattan prime development area, a seventy
percent exemption from real property taxation, other than assessments
for local improvements; and (B) outside of the Manhattan prime
development area, a forty percent exemption from real property taxation,
other than assessments for local improvements; (v) for the twenty-eighth
year of the restriction period, (A) within the Manhattan prime
development area, a sixty percent exemption from real property taxation,
other than assessments for local improvements; and (B) outside of the
Manhattan prime development area, a thirty percent exemption from real
property taxation, other than assessments for local improvements; (vi)
for the twenty-ninth year of the restriction period, (A) within the
Manhattan prime development area, a fifty percent exemption from real
property taxation, other than assessments for local improvements; and
(B) outside of the Manhattan prime development area, a twenty percent
exemption from real property taxation, other than assessments for local
improvements; and (vii) for the thirtieth year of the restriction
period, (A) within the Manhattan prime development area, a forty percent
exemption from real property taxation, other than assessments for local
improvements; and (B) outside of the Manhattan prime development area, a
ten percent exemption from real property taxation, other than
assessments for local improvements.

bb. "Twenty-five year benefit" shall mean: (i) for the construction
period, a one hundred percent exemption from real property taxation,
other than assessments for local improvements; (ii) for the first twenty
years of the restriction period; (A) within the Manhattan prime
development area, a ninety percent exemption from real property
taxation, other than assessments for local improvements; and (B) outside
of the Manhattan prime development area, a sixty-five percent exemption
from real property taxation, other than assessments for local
improvements; (iii) for the twenty-first year of the restriction period,
(A) within the Manhattan prime development area, an eighty percent
exemption from real property taxation, other than assessments for local
improvements; and (B) outside of the Manhattan prime development area, a
fifty percent exemption from real property taxation, other than
assessments for local improvements; (iv) for the twenty-second year of
the restriction period, (A) within the Manhattan prime development area,
a seventy percent exemption from real property taxation, other than
assessments for local improvements; and (B) outside of the Manhattan
prime development area, a forty percent exemption from real property
taxation, other than assessments for local improvements; (v) for the
twenty-third year of the restriction period, (A) within the Manhattan
prime development area, a sixty percent exemption from real property
taxation, other than assessments for local improvements; and (B) outside
of the Manhattan prime development area, a thirty percent exemption from
real property taxation, other than assessments for local improvements;
(vi) for the twenty-fourth year of the restriction period, (A) within
the Manhattan prime development area, a fifty percent exemption from
real property taxation, other than assessments for local improvements;
and (B) outside of the Manhattan prime development area, a twenty
percent exemption from real property taxation, other than assessments
for local improvements; and (vii) for the twenty-fifth year of the
restriction period, (A) within the Manhattan prime development area, a
forty percent exemption from real property taxation, other than
assessments for local improvements; and (B) outside of the Manhattan
prime development area, a ten percent exemption from real property
taxation, other than assessments for local improvements.

2. Benefit. In cities having a population of one million or more,
notwithstanding the provisions of any other general, special or local
law to the contrary, a new eligible multiple dwelling, except a hotel,
that complies with the provisions of this section shall be exempt from
real property taxation, other than assessments for local improvements,
in the amounts and for the periods specified in this section, provided
that such eligible multiple dwelling is used or held out for use for
dwelling purposes. An eligible multiple dwelling that has a commencement
date on or before June thirtieth, two thousand twenty-six shall receive
a thirty-five year benefit; an eligible multiple dwelling that has a
commencement date on or before June thirtieth, two thousand twenty-eight
shall receive a thirty year benefit; and an eligible multiple dwelling
that has a commencement date on or before June thirtieth, two thousand
thirty-one shall receive a twenty-five year benefit.

3. Tax payments. In addition to any other amounts payable pursuant to
this section, the owner of any eligible multiple dwelling receiving AHCC
program benefits shall pay, in each tax year in which such AHCC program
benefits are in effect, all assessments for local improvements.

4. Limitation on benefits for non-residential space. If the aggregate
floor area of commercial, community facility and accessory use space in
an eligible multiple dwelling exceeds twelve percent of the aggregate
floor area in such eligible multiple dwelling, any AHCC program benefits
shall be reduced by a percentage equal to such excess. If an eligible
multiple dwelling contains multiple tax lots, the tax arising out of
such reduction in AHCC program benefits shall first be apportioned pro
rata among any non-residential tax lots. After any such non-residential
tax lots are fully taxable, the remainder of the tax arising out of such
reduction in AHCC program benefits, if any, shall be apportioned pro
rata among the remaining residential tax lots. For the purposes of this
section, accessory use space shall not include home occupation space or
accessory parking space located not more than twenty-three feet above
the curb level.

5. Application of benefit. Based on the certification of the agency
certifying eligibility for AHCC program benefits, the department of
finance shall determine the amount of the exemption pursuant to
subdivisions two and four of this section and shall apply the exemption
to the assessed value of the eligible multiple dwelling.

6. Affordability requirements. An eligible multiple dwelling shall
comply with the affordability requirement defined in paragraph b of
subdivision one of this section during the restriction period. An
eligible multiple dwelling shall also comply with the following
requirements during the restriction period:

a. All affordable housing units in an eligible multiple dwelling shall
share the same common entrances and common areas as rental market rate
units in such eligible multiple dwelling and shall not be isolated to a
specific floor or area of an eligible multiple dwelling. Common
entrances shall mean any means of ingress or egress regularly used by
any resident of a rental dwelling unit in the eligible multiple
dwelling.

b. Unless preempted by the requirements of a federal, state or local
housing program, either: (i) the affordable housing units in an eligible
multiple dwelling shall have a unit mix proportional to the rental
market units; or (ii) at least fifty percent of the affordable housing
units in an eligible multiple dwelling shall have two or more bedrooms
and no more than twenty-five percent of the affordable housing units
shall have less than one bedroom.

c. Notwithstanding any provision of rent stabilization to the
contrary: (i) all affordable housing units shall remain fully subject
to rent stabilization during the restriction period; and (ii) any
affordable housing unit occupied by a tenant that has been approved by
the agency prior to the agency's denial of an eligible multiple
dwelling's application for AHCC program benefits shall remain subject to
rent stabilization until such tenant vacates such affordable housing
unit.

d. All rent stabilization registrations required to be filed shall
contain a designation that specifically identifies affordable housing
units created pursuant to this section as "AHCC program affordable
housing units" and shall contain an explanation of the requirements that
apply to all such affordable housing units.

e. Failure to comply with the provisions of this subdivision that
require the creation, maintenance, rent stabilization compliance, and
occupancy of affordable housing units shall result in revocation of AHCC
program benefits.

f. Nothing in this section shall: (i) prohibit the occupancy of an
affordable housing unit by individuals or families whose income at any
time is less than the maximum percentage of the area median income or
income band, as applicable, adjusted for family size, specified for such
affordable housing unit pursuant to this section; or (ii) prohibit the
owner of an eligible multiple dwelling from requiring, upon initial
rental or upon any rental following a vacancy, the occupancy of any
affordable housing unit by such lower income individuals or families.

g. Following issuance of a temporary certificate of occupancy and upon
each vacancy thereafter, an affordable housing unit shall promptly be
offered for rental by individuals or families whose income does not
exceed the maximum percentage of the area median income or income band,
as applicable, adjusted for family size, specified for such affordable
housing unit pursuant to this section and who intend to occupy such
affordable housing unit as their primary residence. An affordable
housing unit shall not be: (i) rented to a corporation, partnership or
other entity; or (ii) held off the market for a period longer than is
reasonably necessary to perform repairs needed to make such affordable
housing unit available for occupancy.

h. An affordable housing unit shall not be rented on a temporary,
transient or short-term basis. Every lease and renewal thereof for an
affordable housing unit shall be for a term of one or two years, at the
option of the tenant.

i. An affordable housing unit shall not be converted to cooperative or
condominium ownership.

j. The agency may establish by rule such requirements as the agency
deems necessary or appropriate for: (i) the marketing of affordable
housing units, both upon initial occupancy and upon any vacancy; (ii)
monitoring compliance with the provisions of this subdivision; (iii) the
establishment of marketing bands for affordable housing units;

(iv) identifying the permit or permits required for the determination
of the commencement date under this section; and

(v) specifying the legal instrument by which the marketing,
affordability, rent stabilization, permitted rent, and any other
requirement associated with this benefit will be recorded and enforced.
Such requirements may include, but need not be limited to, retaining a
monitor approved by the agency and paid for by the owner of the eligible
multiple dwelling.

k. Notwithstanding any provision of this section to the contrary, a
market unit shall not be subject to rent stabilization unless, in the
absence of AHCC program benefits, the unit would be subject to rent
stabilization.

7. Building service employees. a. For the purposes of this
subdivision, (i) "applicant" shall mean an applicant for AHCC program
benefits and/or any successor to such applicant; and (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.

b. All building service employees employed by the covered building
service employer at the eligible multiple dwelling shall receive the
applicable prevailing wage for the duration of the benefit period,
regardless of whether such benefits provided pursuant to this section
are revoked or terminated.

c. 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: (i) 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; (ii) to institute and
conduct inspections at the site of the work or elsewhere; (iii) to
examine the books, documents and records pertaining to the wages paid
to, and the hours of work performed by, building service employees; (iv)
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; (v) 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; (vi) 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; (vii) to delegate any of
the foregoing powers to his or her deputy or other authorized
representative; (viii) to promulgate rules as he or she 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 (ix) to prescribe appropriate sanctions for failure to comply with
the provisions of this subdivision. 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, he or she shall present evidence of such non-compliance to
the agency.

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 eligible 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 agency's approval 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 agency shall annually publish a list of all eligible sites
subject to the requirements of this subdivision and the affidavits
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 agency 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 shall 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.

8. Concurrent exemptions or abatements. An eligible multiple dwelling
receiving AHCC program benefits shall not receive any exemption from or
abatement of real property taxation under any other law.

9. Voluntary renunciation or termination. Notwithstanding the
provisions of any general, special or local law to the contrary, an
owner shall not be entitled to voluntarily renounce or terminate AHCC
program benefits unless the agency authorizes such renunciation or
termination in connection with the commencement of a tax exemption
pursuant to the private housing finance law or section four hundred
twenty-c of this title.

10. Termination or revocation. The agency may terminate or revoke AHCC
program benefits for failure to comply with this section. 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.

11. Powers cumulative. The enforcement provisions of this section
shall not be exclusive, and are in addition to any other rights,
remedies or enforcement powers set forth in any other law or available
at law or in equity.

12. Multiple tax lots. If an eligible multiple dwelling contains
multiple tax lots, an application may be submitted with respect to one
or more of such tax lots. The agency shall determine eligibility for
AHCC program benefits based upon the tax lots included in such
application and benefits for each such eligible multiple dwelling shall
be based upon the completion date of each such multiple dwelling.

13. Applications. a. The application with respect to any eligible
multiple dwelling shall be filed with the agency no earlier than the
completion date and not later than one year after the completion date of
such eligible multiple dwelling.

b. Notwithstanding the provisions of any general, special, or local
law to the contrary, the agency may require by rule that applications be
filed electronically.

c. The agency may rely on certification by an architect or engineer
submitted by an applicant in connection with the filing of an
application. A false certification by such architect or engineer shall
be deemed to be professional misconduct pursuant to section sixty-five
hundred nine of the education law. Any architect or engineer found
guilty of such misconduct under the procedures prescribed in section
sixty-five hundred ten of the education law shall be subject to the
penalties prescribed in section sixty-five hundred eleven of the
education law and shall thereafter be ineligible to submit a
certification pursuant to this section.

d. Such application shall also certify that all taxes, water charges,
and sewer rents currently due and owing on the property which is the
subject of the application have been paid or are currently being paid in
timely installments pursuant to a written agreement with the department
of finance or other appropriate agency.

14. Filing fee. The agency may require a filing fee of no less than
three thousand dollars per dwelling unit in connection with any
application, except that the agency may promulgate rules:

a. imposing a lesser fee for an eligible multiple dwelling whose
eligible 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; and

b. requiring a portion of the filing fee to be paid upon the
submission of the information the agency requires in advance of
approving the commencement of the marketing process for such eligible
conversion.

15. Multiple residence. A non-residential building undergoing an
eligible conversion shall be considered a multiple residence during the
construction period.

16. Rules. Except as provided in subdivision seven of this section,
the agency shall have the sole authority to enforce the provisions of
this section and may promulgate rules to carry out the provisions of
this section.

17. Penalties for violations of affordability requirements. a. On or
after the expiration date of the benefit provided pursuant to this
section, the agency may impose, after notice and an opportunity to be
heard, a penalty for any violation by an eligible multiple dwelling of
the affordability requirements of subdivision six of this section.

b. A penalty imposed under this subdivision shall be computed as a
percentage of the capitalized value of all AHCC program benefits on the
eligible multiple dwelling, calculated as of the first year that
benefits were granted, not to exceed one thousand percent. The agency
shall establish a schedule and method of calculation of such penalties
pursuant to subdivision sixteen of this section.

c. A penalty imposed under this subdivision shall be imposed against
the owner of the eligible multiple dwelling at the time the violation
occurred, even if such owner no longer owns such eligible multiple
dwelling at the time of the agency's determination.

d. A person or entity who fails to pay a penalty imposed pursuant to
this subdivision shall be guilty of a misdemeanor punishable by
imprisonment not to exceed six months.