§ 485-x. Affordable neighborhoods for New Yorkers tax incentive. 1.
Definitions. For purposes of this section:

(a) "Affordability option A" shall mean:

(i) for a large rental project, that, within any eligible site: (A)
not less than twenty-five percent of the dwelling units are affordable
housing units; (B) 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; (C) there are no more than
three income bands for all of the affordable housing units; and (D) no
income band for affordable housing units exceeds one hundred percent of
the area median income, adjusted for family size;

(ii) for a very large rental project, that, within any eligible site:
(A) not less than twenty-five percent of the dwelling units are
affordable housing units; (B) the weighted average of all income bands
for all of the affordable housing units does not exceed sixty percent of
the area median income, adjusted for family size; (C) there are no more
than three income bands for all of the affordable housing units; and (D)
no income band for affordable housing units exceeds one hundred percent
of the area median income, adjusted for family size.

(b) "Affordability option B" shall mean that, within any eligible
site: (i) not less than twenty percent of the dwelling units are
affordable housing units; (ii) 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; (iii) there are no
more than three income bands for all of the affordable housing units;
and (iv) no income band for affordable housing units exceeds one hundred
percent of the area median income, adjusted for family size.

(c) "Affordability option C" shall mean that, within any eligible
site, not less than fifty percent of the dwelling units are subject to
rent stabilization for the restriction period.

(d) "Affordability option D" shall mean a homeownership project in
which one hundred percent of the units shall have an average assessed
value per square foot that does not exceed eighty-nine dollars upon the
first assessment following the completion date and where each owner of
any such unit shall agree, in writing, to maintain such unit as their
primary residence for no less than five years from the acquisition of
such unit.

(e) "Affordability percentage" shall mean a fraction, the numerator of
which is the number of affordable housing units in an eligible site and
the denominator of which is the total number of dwelling units in such
eligible site.

(f) "Affordable neighborhoods for New Yorkers tax incentive benefits
(hereinafter referred to as "ANNY Program benefits")" shall mean the
exemption from real property taxation pursuant to this section.

(g) "Affordable housing unit" shall mean a dwelling unit that: (i) is
situated within the eligible site for which ANNY Program benefits are
granted; and (ii) upon initial rental and upon each subsequent rental
following a vacancy during the applicable restriction period, is
affordable to and restricted to occupancy by a household whose income
does not exceed a prescribed percentage of the area median income,
adjusted for family size, at the time that such household initially
occupies such dwelling unit.

(h) "Agency" shall mean the department of housing preservation and
development.

(i) "Application" shall mean an application for ANNY Program benefits.

(j) "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 site, including, but not limited to, a
watchperson, guard, doorperson, building cleaner, porter, handyperson,
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 the eligible site.

(k) "Collective bargaining agreement" shall mean an agreement entered
into pursuant to section eight-f or section nine-a of the National Labor
Relations Act (29 U.S.C. Sections 159(a) and 158(f)) between a
contractor or subcontractor and a labor organization setting forth terms
and conditions of employment for those construction employees
represented by the labor organization and employed by the contractor or
subcontractor to perform construction work on an eligible site.

(l) "Commencement date" shall mean, with respect to any eligible
multiple dwelling, the date upon which excavation and construction of
initial footings and foundations lawfully begins in good faith or, for
an eligible conversion, the date upon which the actual construction of
the conversion, alteration or improvement of the pre-existing building
or structure lawfully begins in good faith.

(m) "Completion date" shall mean, with respect to any eligible
multiple dwelling, 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.

(n) "Construction employee" shall mean any person performing
construction work who is a laborer, worker, or mechanic.

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

(p) "Construction work" shall mean the provision of labor performed on
an eligible site between the commencement date and the completion date,
whereby materials and constituent parts are combined to initially form,
make or build an eligible multiple dwelling, including without
limitation, painting, or providing of material, articles, supplies or
equipment in the eligible multiple dwelling, but excluding security
personnel and work related to the fit-out of commercial spaces.

(q) "Eligible conversion" shall mean the conversion, alteration or
improvement of a pre-existing building or structure resulting in a
multiple dwelling in which no more than forty-nine percent of the floor
area consists of such pre-existing building or structure.

(r) "Eligible multiple dwelling" shall mean a multiple dwelling or
homeownership project containing six or more dwelling units created
through new construction or eligible conversion for which the
commencement date is after June fifteenth, two thousand twenty-two and
on or before June fifteenth, two thousand thirty-four and the completion
date is on or before June fifteenth, two thousand thirty-eight.

(s) "Eligible site" shall mean either: (i) a tax lot containing an
eligible multiple dwelling; or (ii) a zoning lot containing two or more
eligible multiple dwellings that are part of a single application.

(t) "Employee benefits" shall mean all supplemental compensation paid
by the employer, on behalf of construction employees, other than wages,
including, without limitation, any premiums or contributions made into
plans or funds that provide health, welfare, non-occupational disability
coverage, retirement, vacation benefits, holiday pay, life insurance and
apprenticeship training. The value of any employee benefits received
shall be determined based on the prorated hourly cost to the employer of
the employee benefits received by construction employees.

(u) "Extended construction period" shall mean, with respect to any
very large rental project located in Zone A, a period: (i) beginning on
the later of the commencement date of such eligible multiple dwelling or
five years before the completion date of such eligible multiple
dwelling; and (ii) ending on the day preceding the completion date of
such eligible multiple dwelling.

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

(w) "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.

(x) "Forty year benefit" shall mean: (i) for the construction period
or extended construction period, as applicable, a one hundred percent
exemption from real property taxation, other than assessments for local
improvements; and (ii) for the first forty years of the restriction
period, a one hundred percent exemption from real property taxation,
other than assessments for local improvements.

(y) "Homeownership project" shall mean a multiple dwelling operated as
condominium or cooperative housing; however, it shall not include a
multiple dwelling or portion thereof operated as condominium or
cooperative housing located within the borough of Manhattan.

(z) "Hourly wage" shall mean the amount equal to the aggregate amount
of wages and employee benefits paid to, or on behalf of, a construction
employee for each hour of construction work.

(aa) "Jobsite agreement" shall mean a collective bargaining agreement
that only sets forth terms and conditions of employment for construction
employees performing construction work under the agreement at one
specific eligible site.

(bb) "Large rental project" shall mean an eligible site consisting of
one hundred or more residential dwelling units in which all dwelling
units included in any application are operated as rental housing.

(cc) "Market unit" shall mean a dwelling unit in an eligible multiple
dwelling other than a restricted unit.

(dd) "Marketing band" shall mean maximum rent ranging from twenty
percent to thirty percent of the area median income applicable to a
specific affordable housing unit.

(ee) "Modest rental project" shall mean an eligible site consisting of
more than five and less than one hundred residential dwelling units in
which all dwelling units included in any application are operated as
rental housing, other than a small rental project.

(ff) "Multiple dwelling" shall have the same meaning set forth in
subdivision seven of section four of the multiple dwelling law.

(gg) "Neighborhood tabulation area" shall mean a geographical area
defined by the department of city planning for the purposes of providing
neighborhood-level data.

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

(ii) "Project labor agreement" shall mean a pre-hire collective
bargaining agreement between a contractor and a bona fide building and
construction trade labor organization establishing the labor
organization as the collective bargaining representative for all persons
who will perform construction work on an eligible site, and which
provides that only contractors and subcontractors who sign a
pre-negotiated agreement with the labor organization can perform
construction work on an eligible site.

(jj) "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 the chapter of the laws of
two thousand twenty-four that added this section or as amended
thereafter, together with any successor statutes or regulations
addressing substantially the same subject matter.

(kk) "Rental project" shall mean, collectively, a very large rental
project, large rental project, modest rental project, and small rental
project.

(ll) "Residential tax lot" shall mean a tax lot that contains dwelling
units.

(mm) "Restricted unit" shall mean, individually and collectively: (i)
affordable housing units; and (ii) dwelling units that are subject to
rent stabilization in accordance with affordability option C.

(nn) "Restriction period" shall mean, notwithstanding any earlier
termination or revocation of affordable citywide construction program
benefits: (i) with respect to a rental project, a period commencing on
the completion date and extending in perpetuity; and (ii) with respect
to a homeownership project, a period commencing on the completion date
and expiring on the twentieth anniversary of the completion date.

(oo) "Small rental project" shall mean an eligible site consisting of
more than five and less than eleven residential dwelling units, located
outside the borough of Manhattan on a zoning lot that permits a
residential floor area not exceeding twelve-thousand five hundred square
feet, in which all dwelling units included in any application are
operated as rental housing and that elects to comply with affordability
option C.

(pp) "Ten 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 ten years of the
restriction period, a one hundred percent exemption from real property
taxation, other than assessments for local improvements.

(qq) "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
twenty-five years of the restriction period, a one hundred percent
exemption from real property taxation, other than assessments for local
improvements; and (iii) for the ten years of the restriction period
subsequent to such twenty-five years, (A) with respect to modest rental
projects, an exemption from real property taxation, other than
assessments for local improvements, equal to the affordability
percentage, and (B) with respect to large rental projects, a one hundred
percent exemption from real property taxation, other than assessments
for local improvements.

(rr) "Twenty 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
fourteen years of the restriction period, a one hundred percent
exemption from real property taxation, other than assessments for local
improvements, provided, however, that no exemption shall be given for
any portion of the square footage of a unit with an assessed value that
exceeds eighty-nine dollars per square foot; and (iii) for the final six
years of the restriction period, a twenty-five percent exemption from
real property taxation, other than assessments for local improvements,
provided, however, that no exemption shall be given for any portion of
the square footage of a unit with an assessed value that exceeds
eighty-nine dollars per square foot.

(ss) "Very large rental project" shall mean an eligible site located
in Zone A or Zone B consisting of one hundred fifty or more residential
dwelling units in which all dwelling units included in any application
are operated as rental housing.

(tt) "Wages" shall mean all compensation, remuneration or payments of
any kind paid to, or on behalf of, construction employees, including,
without limitation, any hourly compensation paid directly to the
construction employee, together with employee benefits, such as health,
welfare, non-occupational disability coverage, retirement, vacation
benefits, holiday pay, life insurance and apprenticeship training, and
payroll taxes, including, to the extent permissible by law, all amounts
paid for New York state unemployment insurance, New York state
disability insurance, metropolitan commuter transportation mobility tax,
federal unemployment insurance and pursuant to the federal insurance
contributions act or any other payroll tax that is paid by the employer.

(uu) "Zone A" shall mean any tax lot now existing or hereafter created
which is located entirely south of 96th street in the borough of
Manhattan or in any of the following neighborhood tabulation areas as
most recently defined by the department of New York City planning:
Brooklyn 0101, Brooklyn 0102, Brooklyn 0103, Brooklyn 0104, and Queens
0201.

(vv) "Zone B" shall mean any tax lot now existing or hereafter created
which is located entirely in any of the following neighborhood
tabulation areas as most recently defined by the department of New York
City planning: Brooklyn 0201, Brooklyn 0202, Brooklyn 0203, Brooklyn
0204, Brooklyn 0601, Brooklyn 0602, Brooklyn 0801, Queens 0105, and
Queens 0102.

2. Benefit. In cities having a population of one million or more,
notwithstanding the provisions of any general, special or local law to
the contrary, new eligible multiple dwellings, except hotels, that
comply 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 as follows:

(a) a small rental project that complies with all of the requirements
of this subdivision shall receive a ten year benefit;

(b) a modest rental project that complies with all of the requirements
of this subdivision shall receive a thirty-five year benefit;

(c) a large rental project that complies with all of the requirements
of this subdivision shall receive a thirty-five year benefit;

(d) a very large rental project that complies with all of the
requirements of this subdivision shall receive a forty year benefit; and

(e) a homeownership project that complies with all of the requirements
of this subdivision shall receive a twenty year benefit.

3. Construction work requirements. In addition to all other
requirements set forth in this section, any eligible site containing one
hundred or more dwelling units within the city of New York shall comply
with the requirements set forth in this subdivision except as otherwise
provided in any paragraph of this subdivision.

(a) Construction work on any eligible site containing one hundred
units or more shall be subject to requirements in accordance with
sections two hundred twenty and two hundred twenty-b of the labor law;
provided, however, that the minimum hourly rate of wages and supplements
required to be paid to construction employees shall be forty dollars,
which shall increase by two and one-half percent on the first day of
July in the year two thousand twenty-five and by two and one-half
percent on the first day of July in each year thereafter.

(b) Construction work on any eligible site containing one hundred
fifty units or more, within Zone A, shall be subject to requirements in
accordance with sections two hundred twenty and two hundred twenty-b of
the labor law; provided, however, that the minimum hourly rate of wages
and supplements required to be paid to construction employees shall be
the lesser of seventy-two dollars and forty-five cents, which shall
increase by two and one-half percent on the first day of July in the
year two thousand twenty-five and by two and one-half percent on the
first day of July in each year thereafter, or sixty-five percent of the
greatest prevailing rate of wages and supplements within a
classification.

(c) Construction work on any eligible site containing one hundred
fifty units or more, within Zone B, shall be subject to requirements in
accordance with sections two hundred twenty and two hundred twenty-b of
the labor law; provided, however, that the minimum hourly rate of wages
and supplements required to be paid to construction employees shall be
the lesser of sixty-three dollars, which shall increase by two and
one-half percent on the first day of July in the year two thousand
twenty-five and by two and one-half percent on the first day of July in
each year thereafter, or sixty percent of the greatest prevailing rate
of wages and supplements within a classification.

(d) The owner of an eligible site shall be responsible for notifying
the fiscal officer and the agency at least three months prior to the
commencement of construction work of the location of the project, the
anticipated construction start date, the anticipated construction end
date, and the existence of any project labor agreement on the eligible
site. Failure to provide such notice in the time and manner required
shall subject the owner to fines and penalties not to exceed
five-thousand dollars per day. In addition to the fines and penalties
set forth herein, an owner shall forfeit the tax abatements and
exemptions provided under this section if construction commences prior
to providing the notice required under this section.

(e) The owner of an eligible site shall be responsible for retaining
original payroll records in accordance with section two hundred twenty
of the labor law, as modified by paragraph (a) of this subdivision, for
a period of six years from the completion date. All payroll records
maintained by an owner pursuant to this subdivision shall be subject to
inspection on request of the fiscal officer. Such owner may authorize
the prime contractor on the eligible site to take responsibility for
retaining and maintaining payroll records, but will be held jointly and
severally liable for any violations of such contractor. All records
obtained by the fiscal officer shall be subject to the freedom of
information law.

(f) The fiscal officer may issue rules and regulations governing the
provisions of this subdivision. Violations of this subdivision shall be
grounds for determinations and orders pursuant to section two hundred
twenty-b of the labor law.

(g) Where a complaint is received pursuant to this subdivision, if the
fiscal officer finds cause to believe that an applicant or any person
acting on behalf of or as an agent of an applicant, in connection with
the performance of any contract for construction work pursuant to this
subdivision, has committed a violation of the provisions of this
subdivision, the fiscal officer may recapture tax abatements or
exemptions provided pursuant to this section and/or terminate future tax
abatements or exemptions made available pursuant to this section
pursuant to the following:

(i) If an applicant or any person acting on behalf of or as an agent
of an applicant, in connection with the performance of any contract for
construction work pursuant to this subdivision, has committed three
violations of the requirements of paragraph (a), (b), or (c) of this
subdivision within a five-year period, the fiscal officer may recapture
tax abatements or exemptions provided pursuant to this section and/or
terminate future tax abatements or exemptions made available pursuant to
this section, provided, however, that after a second such violation, the
applicant shall be notified that any further violation may result in the
recapture of tax abatements or exemptions provided pursuant to this
section and/or termination of future tax abatements or exemptions made
available pursuant to 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.

(ii) For purposes of this subdivision, a "violation" of paragraph (a),
(b), or (c) of this subdivision shall be deemed a finding by the fiscal
officer that the applicant or any person acting on behalf of or as an
agent of an applicant has failed to comply with paragraph (a), (b), or
(c) of this subdivision and has failed to cure the deficiency within
three months of such finding.

(iii) If the fiscal officer recaptures tax abatements or exemptions
provided pursuant to this section and/or terminates future tax
abatements or exemptions made available pursuant to this section for
noncompliance with paragraph (a), (b), or (c) of this subdivision
pursuant to this paragraph: (a) all of the restricted units shall remain
subject to rent stabilization and all other requirements of this section
for the restriction period, and any additional period expressly provided
in this section, as if the ANNY Program benefits had not been recaptured
or terminated; or (b) for a homeownership project, such project shall
continue to comply with affordability requirements set forth in this
section and all other requirements of this section for the restriction
period and any additional period expressly provided in this section, as
if the ANNY Program benefits had not been recaptured or terminated.

(h) An eligible site shall be excluded from the requirements of
paragraphs (a), (b), (c) and (d) of this subdivision where the
performance of all construction work on the eligible site is covered by
a project labor agreement.

(i) A contractor and owner may be excluded from the requirements of
paragraphs (a), (b), (c) and (d) of this subdivision with respect to
only those construction employees of the contractor that are performing
construction work on the eligible site under a collective bargaining
agreement or a jobsite agreement that has expressly waived the
provisions of paragraphs (a), (b), (c) and (d) of this subdivision.

4. In addition to all other requirements set forth in this section, an
eligible site must, over the course of the design and construction of
such eligible site, make all reasonable efforts to spend on contracts
with minority and women owned business enterprises at least twenty-five
percent of the total applicable costs, as such enterprises and costs are
defined in rules of the agency. Such rules shall set forth required
measures with respect to contracts for design and construction that are
comparable, to the extent practicable, to the measures used by agencies
of the city of New York to enhance minority and women owned business
enterprise participation in agency contracts pursuant to applicable law,
including section 6-129 of the administrative code of the city of New
York.

5. Tax payments. In addition to any other amounts payable pursuant to
this section, the owner of any eligible site receiving ANNY Program
benefits shall pay, in each tax year in which such ANNY Program benefits
are in effect, real property taxes and assessments as follows:

(a) with respect to each eligible multiple dwelling constructed on
such eligible site, real property taxes on the assessed valuation of
such land and any improvements thereon in effect during the tax year
prior to the commencement date of such eligible multiple dwelling,
without regard to any exemption from or abatement of real property
taxation in effect during such tax year, which real property taxes shall
be calculated using the tax rate in effect at the time such taxes are
due, provided, however, that this paragraph shall not apply to any very
large rental project during the construction period or extended
construction period, as applicable; and

(b) all assessments for local improvements.

6. Limitation on benefits for non-residential space. If the aggregate
floor area of commercial, community facility and accessory use space in
an eligible site, other than parking which is located not more than
twenty-three feet above the curb level, exceeds twelve percent of the
aggregate floor area in such eligible site, any ANNY Program benefits
shall be reduced by a percentage equal to such excess. If an eligible
site contains multiple tax lots, the tax arising out of such reduction
in ANNY 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
ANNY Program benefits, if any, shall be apportioned pro rata among the
remaining residential tax lots.

7. Calculation of benefit. Based on the certification of the agency
certifying the applicant's eligibility for ANNY Program benefits, the
assessors shall certify to the collecting officer the amount of taxes to
be exempted.

8. Affordability and rent stabilization requirements. During the
restriction period, a large rental project and a very large rental
project shall comply with affordability option A, a modest rental
project shall comply with affordability option B, a small rental project
shall comply with the requirements of affordability option C, and a
homeownership project shall comply with affordability option D. Such
election shall be made in the application and shall not thereafter be
changed.

(a) All rental dwelling units in an eligible multiple dwelling shall
share the same common entrances and common areas as 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 area regularly used by any resident of a rental dwelling unit
in the eligible multiple dwelling for ingress and egress from such
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 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 restricted units shall remain fully subject to rent
stabilization both during and subsequent to the restriction period, and
(ii) any restricted unit occupied by a tenant whose eligibility has been
approved by the agency shall remain subject to rent stabilization until
such tenant vacates such affordable housing unit where, (A) such
approval occurred prior to the agency's denial of an application for
ANNY program benefits for the multiple dwelling containing such
restricted unit, or (B) such restricted unit is in a multiple dwelling
for which an application for ANNY program benefits has not been filed or
has been withdrawn after filing.

(d) All rent stabilization registrations required to be filed shall:
(i) contain a designation that specifically identifies affordable
housing units created pursuant to this section as "ANNY Program
affordable housing units"; (ii) contain a designation that specifically
identifies dwelling units that are subject to rent stabilization in
accordance with affordability option C; and (iii) contain an explanation
of the requirements that apply to all such restricted units.

(e) Failure to comply with the provisions of this subdivision that
require the creation, maintenance, rent stabilization compliance and
occupancy of restricted units or for purposes of a homeownership project
the failure to comply with the affordable homeownership project
requirements shall result in the exercise of the agency's enforcement
powers in accordance with this section, which include, but are not
limited to, revocation of any ANNY 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,
adjusted for family size, specified for such affordable housing unit
pursuant to this section, or (ii) prohibit the owner of an eligible site
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, 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. A restricted 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 restricted unit available for occupancy.

(h) A restricted unit shall not be rented on a temporary, transient or
short-term basis. Every lease and renewal thereof for a restricted unit
shall be for a term of one or two years, at the option of the tenant.

(i) A restricted 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 restricted
units, both upon initial occupancy and upon any vacancy, (ii) monitoring
compliance with the provisions of this subdivision, and (iii) the
establishment of marketing bands for affordable housing units, and (iv)
the marketing and monitoring of any homeownership project that is
granted an exemption pursuant to this subdivision. Such requirements may
include, but need not be limited to, retaining a monitor approved by the
agency and paid for by the owner.

(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 ANNY Program benefits, the unit would be subject to rent
stabilization.

9. Building service employees. (a) For the purposes of this
subdivision, (i) "applicant" shall mean an applicant for ANNY 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 site shall receive the applicable
prevailing wage for the duration of the applicable benefit period,
regardless of whether such benefits 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; 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, administer oaths and examine witnesses; the enforcement of a
subpoena issued under this subdivision shall be regulated by the civil
practice law and rules;

(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 such fiscal officer's
deputy or other authorized representative;

(viii) to promulgate rules as such fiscal officer shall consider
necessary for the proper execution of the duties, responsibilities and
powers conferred upon such fiscal officer by the provisions of this
paragraph; 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 attorney's fees. If the fiscal officer finds that
the applicant has failed to comply with the provisions of this
subparagraph, 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 in which all of the dwelling units
are affordable housing units and not less than fifty percent of such
affordable housing units, upon initial rental and upon each subsequent
rental following a vacancy are affordable to and restricted to occupancy
by individuals or families whose household income does not exceed ninety
percent of the area median income, adjusted for family size, at the time
that such household initially occupies such dwelling unit.

(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 paragraph and the affidavits
required pursuant to paragraph (e) of this subdivision.

10. Replacement ratio. If the land on which an eligible site is
located contained any dwelling units three years prior to the
commencement date of the first eligible multiple dwelling thereon, then
such eligible multiple dwelling or dwellings built thereon shall contain
at least one affordable housing unit for each dwelling unit that existed
on such date and was thereafter demolished, removed or reconfigured,
provided that if such eligible multiple dwelling or dwellings built
thereon is a small rental project, then such eligible multiple dwelling
or dwellings built thereon shall contain at least one restricted unit
for each dwelling unit that existed on such date and was thereafter
demolished, removed or reconfigured.

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

12. 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 ANNY
Program benefits unless the agency authorizes such renunciation or
termination in connection with the commencement of a new tax exemption
pursuant to either the private housing finance law or section four
hundred twenty-c of this title.

13. Termination or revocation. The agency may terminate or revoke ANNY
Program benefits for failure to comply with this section; provided,
however, that the agency shall not terminate or revoke ANNY Program
benefits for a failure to comply with subdivision three of this section.
If a covered building service employer has committed three violations of
the requirements of paragraph (b) of subdivision nine of this section
within a five-year period, the agency may revoke any benefits associated
with such eligible multiple dwelling under this section. For purposes of
this subdivision, a "violation" of paragraph (b) of subdivision nine of
this section shall be deemed a finding by the fiscal officer that the
covered building service employer has failed to comply with paragraph
(b) of subdivision nine of this section 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 subdivision. If
ANNY Program benefits are terminated or revoked for noncompliance with
this section: (a) all of the restricted units shall remain subject to
rent stabilization and all other requirements of this section for the
applicable restriction period, and any additional period expressly
provided in this section, as if the ANNY Program benefits had not been
terminated or revoked; or (b) for a homeownership project, such project
shall continue to comply with affordability requirements set forth in
this section and all other requirements of this section for the
restriction period and any additional period expressly provided in this
section, as if the ANNY Program benefits had not been terminated or
revoked.

14. 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.

15. Multiple tax lots. If an eligible site 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 ANNY Program benefits
based upon the tax lots included in such application and benefits for
each multiple dwelling shall be based upon the completion date of such
multiple dwelling.

16. Applicant registration. (a) Prospective applicants for ANNY
Program benefits pursuant to this section shall file with the agency a
form supplied by the agency which: (i) states an intention to file for
such benefits under the provisions of this subdivision; (ii) includes
the commencement date; and (iii) establishes the intended number of
total dwelling units and, if applicable, restricted units. The agency
shall promulgate such form no later than ninety days after the effective
date of this section.

(b) The form described in paragraph (a) of this subdivision shall be
filed: (i) for projects with a commencement date before the effective
date of this section, no later than six months after such effective date
or six months after the agency promulgates the form described in
paragraph (a) of this subdivision, whichever is later; or (ii) for
projects with a commencement date on or after the effective date of this
section, no later than six months after such commencement date or six
months after the agency promulgates the form described in paragraph (a)
of this subdivision, whichever is later.

(c) Applicants who fail to comply with the requirements of this
subdivision shall be subject to a penalty not to exceed one hundred
percent of the application filing fee otherwise payable pursuant to
subdivision eighteen of this section.

17. Applications. (a) The application with respect to any eligible
multiple dwelling shall be filed with the agency 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 licensee 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) The agency shall not require that the applicant demonstrate
compliance with the requirements of subdivision three of this section as
a condition to approval of the application.

18. Filing fee. (a) The agency may require a filing fee of: (i) three
thousand dollars per dwelling unit in connection with any application
for an eligible site consisting of more than five and less than eleven
residential rental dwelling units; (ii) four thousand dollars per
dwelling unit in connection with any application for an eligible site
consisting of more than eleven units and less than one hundred
residential dwelling units; (iii) four thousand dollars per dwelling
unit in connection with any application for a homeownership project; and
(iv) five thousand dollars per dwelling unit in connection with any
application for an eligible site consisting of one hundred or more
residential dwelling units.

(b) Notwithstanding the provisions contained in paragraph (a) of this
subdivision, the agency may promulgate rules: (i) imposing a lesser fee
for eligible sites containing eligible multiple dwellings constructed
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
(ii) 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 a modest rental
project, a large rental project, or a very large rental project.

19. Rules. Except as provided in subdivisions three and nine 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.

20. Reporting. On or before June thirtieth of each year, the
commissioner of the agency shall issue a report to the governor, the
temporary president of the senate and the speaker of the assembly
setting forth the number of total projects and units created by this
section by year, level of affordability, and community board, the cost
of the ANNY Program, and other such factors as the commissioner of the
New York city department of housing preservation and development deems
appropriate. The New York city department of housing preservation and
development may request and shall receive cooperation and assistance
from all departments, divisions, boards, bureaus, commissions, public
benefit corporations or agencies of the state of New York, the city of
New York or any other political subdivisions thereof, or any entity
receiving benefits pursuant to this section.

21. Penalties for violations of affordability and rent stabilization
requirements. (a) On and after the expiration date of the ten year
benefit, twenty year benefit, thirty-five year benefit, or forty year
benefit, as applicable, the agency may impose, after notice and an
opportunity to be heard, a fine for any violation of the affordability
and rent stablization requirements established pursuant to subdivision
eight of this section by such small rental project, modest rental
project, large rental project, very large rental project, or
homeownership project. The agency shall establish a schedule and method
of calculation of such fines pursuant to subdivision nineteen of this
section.

(b) A fine under this subdivision may be imposed against the owner of
the eligible site containing such small rental project, modest rental
project, large rental project, very large rental project, or
homeownership project at the time the violation occurred, even if such
owner no longer owns such eligible site. A failure to pay such fine may
result in a lien and such other remedies as may be available pursuant to
applicable law and regulation.