N.Y. Real Prop. Tax Law § 489

§ 489. Exemption from taxation of alterations and improvements to\nmultiple dwellings to eliminate fire and health hazards; abatement. 1.\n(a) Any city to which the multiple dwelling law is applicable, acting\nthrough its local legislative body or other governing agency, is hereby\nauthorized and empowered, to and including January first, two thousand\nnineteen, to adopt and amend local laws or ordinances providing that any\nincrease in assessed valuation of real property shall be exempt from\ntaxation for local purposes, as provided herein, to the extent such\nincrease results from:\n (1) conversion of buildings or structures on such property to class A\nmultiple dwellings not used in whole or in part for single room\noccupancy, including conversion of residential units qualified for the\nprotection of article seven-C of the multiple dwelling law in buildings\nclassified as interim multiple dwellings pursuant to such article to\nunits which are in compliance with the standards of safety and fire\nprotection set forth in article seven-B of the multiple dwelling law or\nto units which have a certificate of occupancy as class A multiple\ndwellings; or\n (2) alterations or improvements, including as improvements asbestos\nabatement to the extent such asbestos abatement is required by federal,\nstate or local law, on such property to eliminate unhealthy or dangerous\nconditions or to replace inadequate and obsolete sanitary facilities,\nany of which represent fire or health hazards, in any existing class A\nmultiple dwellings or buildings consisting of one or two dwelling units\nover space used for commercial occupancy, except insofar as the gross\ncubic content of the building is increased thereby; or\n (3) alterations or improvements on such property which are designed to\nconserve the use of fuel, electricity or other such energy sources in\nany dwellings or other buildings or structures described in clause one\nor two of this paragraph; or\n (4) alterations or improvements to the exterior walls of dwellings or\nother buildings or structures on such property in order to comply with\nany provision of law regulating dwellings, buildings, or structures that\nare in an area designated as an historic or landmark area or that are\ndesignated as historic or landmark buildings or structures; or\n (5) alterations or improvements constituting a moderate rehabilitation\nof a substantially occupied class A multiple dwelling within a city\nhaving a population of one million or more as certified by the local\nhousing agency pursuant to local law or rules and regulations; or\n (6) alterations or improvements constituting a substantial\nrehabilitation of a class A multiple dwelling or a conversion of a\nbuilding or structure into a class A multiple dwelling as part of a\nprogram to provide housing for low and moderate income households as\ndefined by the local housing agency pursuant to rules and regulations,\nprovided that such alterations or improvements or conversions shall be\naided by a grant, loan or subsidy from any federal, state or local\nagency or instrumentality, including, in the discretion of the local\nhousing agency, a subsidy in the form of a below market sale.\n Such conversion, alterations or improvements shall be completed within\nthirty months after the date on which same shall be started except that\nsuch thirty month limitation shall not apply to conversions of\nresidential units which are registered with the loft board in accordance\nwith article seven-C of the multiple dwelling law pursuant to\nsubparagraph one of this paragraph. Notwithstanding the foregoing, a\nsixty month period for completion shall be available for alterations or\nimprovements undertaken by a housing development fund company organized\npursuant to article eleven of the private housing finance law, which are\ncarried out with the substantial assistance of grants, loans or\nsubsidies from any federal, state or local governmental agency or\ninstrumentality or which are carried out in a property transferred from\nsuch city if alterations and improvements are completed within seven\nyears after the date of transfer. In addition, the local housing agency\nis hereby empowered to grant an extension of the period of completion\nfor any project carried out with the substantial assistance of grants,\nloans or subsidies from any federal, state or local governmental agency\nor instrumentality, if such alterations or improvements are completed\nwithin sixty months from commencement of construction. Provided,\nfurther, that such conversion, alterations or improvements shall in any\nevent be completed prior to June thirtieth, two thousand nineteen.\nExemption for conversions, alterations or improvements pursuant to\nsubparagraph one, two, three or four of this paragraph shall continue\nfor a period not to exceed fourteen years and begin no sooner than the\nfirst quarterly tax bill immediately following the completion of such\nconversion, alterations or improvements. Exemption for alterations or\nimprovements pursuant to this subparagraph or subparagraph five of this\nparagraph shall continue for a period not to exceed thirty-four years\nand shall begin no sooner than the first quarterly tax bill immediately\nfollowing the completion of such alterations or improvements. Such\nexemption shall be equal to the increase in the valuation which is\nsubject to exemption in full or proportionally under this subdivision\nfor ten or thirty years, whichever is applicable. After such period of\ntime, the amount of such exempted assessed valuation of such\nimprovements shall be reduced by twenty percent in each succeeding year\nuntil the assessed value of the improvements are fully taxable.\nProvided, however, exemption for any conversion, alterations or\nimprovements which are aided by a loan or grant under article eight,\neight-A, eleven, twelve, fifteen or twenty-two of the private housing\nfinance law, section six hundred ninety-six-a or section ninety-nine-h\nof the general municipal law, or section three hundred twelve of the\nhousing act of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the\nCranston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et.\nseq.), or started after July first, nineteen hundred eighty-three by a\nhousing development fund company organized pursuant to article eleven of\nthe private housing finance law which are carried out with the\nsubstantial assistance of grants, loans or subsidies from any federal,\nstate or local governmental agency or instrumentality or which are\ncarried out in a property transferred from any city and where\nalterations and improvements are completed within seven years after the\ndate of transfer may commence at the beginning of any tax quarter\nsubsequent to the start of such conversion, alterations or improvements\nand prior to the completion of such conversion, alterations or\nimprovements.\n (b) Any city to which the multiple dwelling law is not applicable,\nacting through its local legislative body or other governing agency, is\nhereby authorized and empowered, to and including June first, nineteen\nhundred seventy-two, to adopt and amend local laws or ordinances\nproviding that any increase in assessed valuation resulting from\nalterations and improvements to eliminate presently existing unhealthy\nor dangerous conditions in any multiple dwellings occupied, as a rule,\nfor permanent residence purposes or to replace inadequate and obsolete\nsanitary facilities any of which represent fire or health hazards, in\nsuch dwellings except insofar as the gross cubic content of the building\nis increased thereby, shall be exempt from taxation for local purposes\nfor a period not to exceed twelve years after the taxable status date\nimmediately following the completion thereof, provided that the\nalterations or improvements for which the benefits of any such law or\nordinance are claimed were started after March first, nineteen hundred\nsixty-two, and completed within two years from the date on which they\nwere started and in any event prior to December thirty-first, nineteen\nhundred seventy-four.\n 1-a. Notwithstanding the provisions of subdivision one of this\nsection, alterations, improvements or conversions of any building or\nstructure that are eligible for benefits pursuant to paragraph (a) of\nsubdivision one of this section except insofar as the gross cubic\ncontent of such building or structure is increased thereby shall be\neligible for such benefits insofar as the gross cubic content of such\nbuilding or structure is increased thereby provided that:\n (a) for all tax lots now existing or hereafter created, at least fifty\npercent of the floor area of the completed building or structure\nconsists of the pre-existing building or structure that was converted,\naltered or improved in accordance with paragraph (a) of subdivision one\nof this section, and\n (b) for tax lots in the city of New York now existing or hereafter\ncreated within the following area in the borough of Manhattan, such\nconversions, alterations or improvements are aided by a grant, loan or\nsubsidy from any federal, state or local agency or instrumentality:\nbeginning at the intersection of the United States pierhead line in the\nHudson river and the center line of Chambers street extended, thence\neasterly to the center line of Chambers street and continuing along the\ncenter line of Chambers street to the center line of Centre street,\nthence southerly along the center line of Centre street to the center\nline of the Brooklyn Bridge to the intersection of the Brooklyn Bridge\nand the United States pierhead line in the East river, thence northerly\nalong the United States pierhead line in the East river to the\nintersection of the United States pierhead line in the East river and\nthe center line of One Hundred Tenth street extended, thence westerly to\nthe center line of One Hundred Tenth street and continuing along the\ncenter line of One Hundred Tenth street to its westerly terminus, thence\nwesterly to the intersection of the center line of One Hundred Tenth\nstreet extended and the United States pierhead line in the Hudson river,\nthence southerly along the United States pierhead line in the Hudson\nriver to the point of beginning. For purposes of this subdivision,\n"floor area" shall have the same meaning as in paragraph b of\nsubdivision one of section four hundred twenty-one-a of this title.\nNothing in this subdivision shall be construed to provide benefits\npursuant to subdivision two of this section for the costs attributable\nto the increased cubic content in any such building or structure.\n 2. (a) With respect to conversions, alterations or improvements\neligible to receive the benefits of subdivision one of this section, any\nsuch local law or ordinance may also provide that the duration and\namount of abatement of taxes on such property, including the land, may\nbe separately established for each of the categories of eligibility\ndescribed in paragraph a of subdivision one of this section, provided\nthat:\n (1) except as provided in subparagraphs two and three of this\nparagraph, the annual abatement of taxes on such property, including the\nland, shall not be an amount greater than eight and one-third per centum\nof the total cost of such conversion, alterations or improvements nor\nshall the abatement exceed the total cost of such conversions,\nalterations or improvements or be effective for more than twenty years\nand the annual abatement of taxes in any consecutive twelve-month period\nshall in no event exceed the amount of taxes payable in such\ntwelve-month period;\n (2) in the case of alterations or improvements (i) pursuant to\nsubparagraph five of paragraph (a) of subdivision one of this section\nwhich are carried out with the substantial assistance of grants, loans\nor subsidies from any federal, state or local agency or instrumentality\nor any not-for-profit philanthropic organization one of whose primary\npurposes is providing low or moderate income housing or financed with\nmortgage insurance by the New York city residential mortgage insurance\ncorporation or the state of New York mortgage agency or pursuant to a\nprogram established by the federal housing administration for\nrehabilitation of existing multiple dwellings in a neighborhood strategy\narea as defined by the United States department of housing and urban\ndevelopment, or (ii) pursuant to subparagraph six of paragraph (a) of\nsubdivision one of this section the abatement of taxes on such property,\nincluding the land, shall not exceed one hundred fifty per centum of the\ncertified reasonable cost of the alterations or improvements, as\ndetermined under regulations of the local housing agency administering\nthe local law, and the annual abatement of taxes shall not exceed twelve\nand one-half per centum of such certified reasonable cost, provided that\nsuch abatement shall not be effective for more than twenty years and the\nannual abatement of taxes in any consecutive twelve-month period shall\nin no event exceed the amount of taxes payable in such twelve-month\nperiod; or\n (3) in the case of alterations or improvements carried out with the\nsubstantial assistance of grants, loans or subsidies from any federal,\nstate or local agency or instrumentality or any not-for-profit\nphilanthropic organization one of whose primary purposes is providing\nlow or moderate income housing, or financed with mortgage insurance by\nthe New York city residential mortgage insurance corporation or the\nstate of New York mortgage agency or pursuant to program established by\nthe federal housing administration for rehabilitation of existing\nmultiple dwellings in a neighborhood strategy area as defined by the\nUnited States department of housing and urban development where such\nalterations or improvements are done on property located in census\ntracts in which seventy-five percent or more of the population live in\nhouseholds which earn fifty percent or less of the median household\nincome of the city in which such census tracts are located, the\nabatement of taxes on such property, including the land, shall not\nexceed one hundred fifty per centum of the certified reasonable cost of\nthe alterations or improvements, as determined under regulations of the\nlocal housing agency administering the local law, and the annual\nabatement of taxes shall not exceed twelve and one-half per centum of\nsuch certified reasonable cost, provided that such abatement shall not\nbe effective for more than twenty years and the annual abatement of\ntaxes in any consecutive twelve-month period shall in no event exceed\nthe amount of taxes payable in such twelve month period.\n (b) Such abatement:\n (1) shall begin no sooner than the first quarterly tax bill\nimmediately following the completion of such conversion, alterations or\nimprovements, or\n (2) in the case of any such conversion, alterations or improvements\n(i) completed after December thirty-first, nineteen hundred seventy-five\nand aided by a loan under article eight of the private housing finance\nlaw, or (ii) started after July first, nineteen hundred seventy-seven\nand aided by a loan under article fifteen of the private housing finance\nlaw, or (iii) started after July first, nineteen hundred eighty and\naided by a loan under article eight-A of the private housing finance law\nor (iv) started after July first, nineteen hundred eighty and aided by a\nloan under section three hundred twelve of the housing act of nineteen\nhundred sixty-four (42 U.S.C.A. 1452b), or (v) started after July first,\nnineteen hundred ninety-two and aided by a loan or grant under article\neleven, twelve, or twenty-two of the private housing finance law,\nsection six hundred ninety-six-a or section ninety-nine-h of the general\nmunicipal law, or the Cranston-Gonzalez national affordable housing act\n(42 U.S.C.A. 12701 et. seq.), or (vi) started after July first, nineteen\nhundred eighty-eight by or on behalf of a company not qualifying under\nany of the above provisions which is a not-for-profit corporation\nqualified pursuant to section 501(c)(3) of the Internal Revenue Code and\nwhich has entered into a regulatory agreement with the local housing\nagency requiring operation of the property as housing for low and\nmoderate income persons and families; may be commenced at the beginning\nof any tax quarter subsequent to the start of such conversion,\nalterations or improvements and prior to the completion of such\nconversion, alterations or improvements.\n 3. Any such local law or ordinance may also provide that where the\nimprovements and alterations include or benefit that part of a building\nwhich is not occupied for dwelling purposes, the increase in assessed\nvaluation and the cost of the alteration shall be apportioned so that\nthe benefits of the local law or ordinance shall not be provided for\nimprovements or alterations made for other than dwelling purposes.\n 4. Any such local law or ordinance may also provide that its benefits\nshall not become available to any multiple dwelling, building or\nstructure as provided in paragraph (a) of subdivision one of this\nsection unless and until such multiple dwelling, building or structure\nas provided in paragraph (a) of subdivision one of this section complies\nwith the applicable provisions of law. Any such law or ordinance may\nmake provision as to the date as of which particular improvements and\nalterations shall be deemed to have been completed or commenced\ntherefor, as the case may be, for the purpose of qualifying for the\nbenefits thereof. Any such local law or ordinance may make provision\nauthorizing the adoption of rules and regulations by the local agencies\nof government for the effectuation of the purposes of this section. Any\nsuch local law or ordinance shall provide that the benefits of this\nsection shall apply to any multiple dwelling, building or structure as\nprovided in paragraph (a) of subdivision one of this section, which (i)\nis operated exclusively for the benefit of persons or families who are\nentitled to occupancy by reason of ownership of stock or membership in\nthe corporate owner, or for the benefit of such persons or families and\nother persons or families entitled to occupancy under applicable\nprovisions of law without ownership of stock or membership in the\ncorporate owner, or (ii) is owned as a condominium and is occupied as\nthe residence or home of three or more families living independently of\neach other; provided, however, that any such law or ordinance shall make\nprovision, in addition to all other conditions of eligibility for the\nbenefits of this section, except for multiple dwellings in which units\nhave been newly created by substantial rehabilitation of vacant\nbuildings or conversions of non-residential buildings, that the\navailability of benefits under this section for such multiple dwellings,\nbuildings or structures shall be conditioned on the following: (1) any\nitems of work designated as a major capital improvement in the rules\nadopted by the local housing agency or asbestos abatement to the extent\nsuch asbestos abatement is required by federal, state or local law, and\n(2) (i) the assessed valuation of such multiple dwelling, building, or\nstructure, including land, shall not exceed an average of forty thousand\ndollars per dwelling unit at the time of the commencement of the\nalterations or improvements, and (ii) the average per room sale price of\nthe dwelling units or the stock allocated to such dwelling units shall\nhave been no greater than thirty-five percent of the maximum mortgage\namount for a single family home eligible for purchase by the Federal\nNational Mortgage Association during the three years immediately\npreceding the commencement of the alterations or improvements; provided\nthat if less than ten percent of the dwelling units or an amount of\nstock less than the amount allocable to ten percent of such dwelling\nunits was not transferred during such preceding three year period,\neligibility for benefits shall be conditioned upon the multiple\ndwelling, building, or structure having an assessed valuation per\ndwelling unit of no more than forty thousand dollars at the time of the\ncommencement of the alteration or improvements. Notwithstanding the\nforegoing, such local law shall also provide benefits under this section\nfor work completed in any such multiple dwelling, building or structure\nwithin the first three years of its conversion to cooperative or\ncondominium ownership, as evidenced by the date on which the first\nclosing in a condominium to a bona fide purchaser occurs or in the case\nof a cooperative, the date on which the shares allocable to a unit are\nconveyed to a bona fide purchaser. Any such local law shall also limit\nthe maximum amount of tax abatement which may be received in any tax\nperiod under this section by any such multiple dwelling, building or\nstructure for any alterations and improvements commenced three years or\nmore after its initial conversion to cooperative or condominium\nownership to an amount not in excess of two thousand five hundred\ndollars per dwelling unit of the certified reasonable cost of the\nalterations or improvements as determined under regulations of the local\nhousing agency administering the local law. Any such local law may also\nrequire such certifications and consents to access to records, including\nother tax records, as may be deemed appropriate to enforce such\nconditions of eligibility. Any such local law or ordinance shall provide\nthat the local agencies of government shall establish maximum dollar\nlimits for specified items of cost for any conversion, alterations or\nimprovements. No costs in excess of such maximum dollar limits shall be\nconsidered in determining the benefits of this section.\n 4-a. Notwithstanding any contrary provision of subdivision four of\nthis section, any such local law or ordinance shall provide that the\navailability of benefits under this section to any multiple dwelling,\nbuilding or structure owned and operated by a limited-profit housing\ncompany established pursuant to article two of the private housing\nfinance law shall not be conditioned upon the assessed valuation of such\nmultiple dwelling, building or structure, including land, as calculated\nas an average dollar amount per dwelling unit, at the time of the\ncommencement of the alterations or improvements; provided, however, that\nsuch limited-profit housing company (a) is organized and operating as a\nmutual company, (b) continues to be organized and operating as a mutual\ncompany and to own and operate the multiple dwelling, building or\nstructure receiving such benefits, and (c) has entered into a binding\nand irrevocable agreement with the commissioner of housing of the state\nof New York, the supervising agency, the New York city housing\ndevelopment corporation, or the New York state housing finance agency\nprohibiting the dissolution or reconstitution of such limited-profit\nhousing company pursuant to section thirty-five of the private housing\nfinance law for not less than fifteen years from the commencement of\nsuch benefits. For the purposes of this subdivision, the terms "mutual\ncompany" and "supervising agency" shall have the same meanings as set\nforth in section two of the private housing finance law.\n 4-a-1. Notwithstanding any contrary provision of subdivision four of\nthis section, any such local law or ordinance shall provide that the\navailability of benefits under this section to any multiple dwelling,\nbuilding or structure owned and operated by a redevelopment company\nestablished pursuant to article five of the private housing finance law\nshall not be conditioned upon the assessed valuation of such multiple\ndwelling, building or structure, including land, as calculated as an\naverage dollar amount per dwelling unit, at the time of the commencement\nof the alterations or improvements: provided, however, that such\nredevelopment company (a) is organized and operating as a mutual\nredevelopment company, (b) continues to be organized and operating as a\nmutual redevelopment company and to own and operate the multiple\ndwelling, building or structure receiving such benefits, and (c) has\nentered into a binding and irrevocable agreement with the commissioner\nof housing and community renewal, the supervising agency, the New York\ncity housing development corporation, or the New York state housing\nfinance agency prohibiting the dissolution or reconstitution of such\nredevelopment company pursuant to section one hundred twenty-three of\nthe private housing finance law until the earlier to occur of: (i) in\nfifteen years from the commencement of such benefits, or (ii) the\nexpiration of any tax exemption granted to such redevelopment company\npursuant to section one hundred twenty-five of the private housing\nfinance law. For the purposes of this subdivision, the terms "mutual"\nand "supervising agency" shall have the same meanings as set forth in\nsection one hundred two of the private housing finance law.\n 4-b. Notwithstanding any contrary provision of the private housing\nfinance law, any such local law shall provide that the benefits of this\nsection shall apply to any limited profit housing company as provided in\nthis section. In addition to the limitations set forth in subdivision\neleven of this section, such multiple dwelling, building or structure\nshall be eligible for benefits only where at least one building wide\nimprovement or alteration is part of the application for benefits.\nFurthermore, to the extent that such alterations or improvements are\nfinanced with grants, loans or subsidies from any federal, state, or\nlocal agency or instrumentality, such multiple dwelling, building or\nstructure shall be eligible for benefits only if the limited profit\nhousing company has entered into a binding and irrevocable agreement\nwith the commissioner of housing of the state of New York, the\nsupervising agency, as such term is defined in section two of the\nprivate housing finance law, the New York city housing development\ncorporation, or the New York state housing finance agency prohibiting\nthe dissolution or reconstitution of such limited profit housing company\npursuant to section thirty-five of the private housing finance law for\nnot less than fifteen years from the commencement of such benefits. The\nabatement of taxes on such property, including the land, shall not be an\namount greater than ninety per centum of the certified reasonable cost\nof such alterations or improvements, as determined under regulations of\nthe local housing agency administering the local law, nor greater than\neight and one-third percent of such certified reasonable cost in any\ntwelve month period, nor be effective for more than twenty years. The\nannual abatement of taxes in any twelve month period shall in no event\nexceed fifty percent of the amount of taxes payable in such twelve month\nperiod pursuant to the applicable exemption granted pursuant to article\ntwo of the private housing finance law or other applicable laws or fifty\npercent of payments made in lieu of taxes in such twelve month period.\n 4-c. (a) Any such local law may also provide that a group of multiple\ndwellings which was developed as a planned community and which is owned\nas two separate condominiums containing a total of ten thousand or more\ndwelling units shall be eligible for tax exemption and abatement as\nprovided in this subdivision.\n (b) Any increase in assessed valuation resulting from alterations or\nimprovements to one or more multiple dwellings in a planned community\ndescribed in paragraph (a) of this subdivision shall be exempt from\ntaxation for local purposes. Such exemption shall be equal to the\nincrease in the valuation which is subject to exemption under this\nparagraph for thirty years. After such period of time, the amount of\nsuch exempted assessed value shall be reduced by twenty percent in each\nsucceeding year until the assessed value of the alterations or\nimprovements is fully taxable. Such exemption may commence at the\nbeginning of any tax quarter subsequent to the start of such alterations\nor improvements. In no event shall such alterations or improvements\ndirectly or indirectly result in an equalization increase in the\nassessed valuation of any multiple dwelling forming part of the planned\ncommunity where such alterations or improvements are performed.\n (c) The abatement of taxes on a planned community described in\nparagraph (a) of this subdivision, including the land, shall not exceed\nthe greater of (i) one hundred fifty per centum of the certified\nreasonable cost of the alterations or improvements, as determined under\nthe regulations of the local housing agency administering the local law,\nand (ii) the construction cost of the alterations or improvements\nidentified in such regulations. Such abatement shall not be effective\nfor more than twenty years and the annual abatement of taxes in any\nconsecutive twelve-month period shall not be greater than ten per centum\nof the total abatement granted and shall not exceed the amount of taxes\npayable in such consecutive twelve-month period. Such abatement shall\nbegin no sooner than the first quarterly tax bill immediately following\nthe completion of such alterations or improvements. The limitations set\nforth in subdivision four of this section for multiple dwellings,\nbuildings and structures owned as condominiums shall be inapplicable to\nbenefits granted pursuant to this subdivision. Abatement benefits\ngranted pursuant to this subdivision shall be apportioned among all of\nthe condominium tax lots within the condominium in which the alterations\nor improvements are made, although such alterations or improvements may\nhave been made to one or fewer than all of the multiple dwellings\ntherein.\n (d) In the event that multiple alterations or improvements are\nundertaken in a planned community described in paragraph (a) of this\nsubdivision and separate applications for benefits therefor are made,\nall requirements concerning physical condition of and compliance with\nlaw by the multiple dwellings in such planned community shall apply only\nupon completion of all such alterations or improvements, provided that\nall such alterations or improvements are completed within six years.\n (e) Except as provided in this subdivision, all of the requirements\nimposed by this section on projects described in paragraph (a) of\nsubdivision one of this section shall be applicable to alterations or\nimprovements granted benefits pursuant to this subdivision.\n (f) This subdivision shall be applicable only to alterations or\nimprovements completed prior to December thirty-first, two thousand\nfive.\n 5. To the end that conversions, alterations, and improvements aided by\nthis section shall interfere as little as practicable with urgently\nneeded public improvements or the clearance, rehabilitation, or\nrebuilding of substandard and unsanitary areas, and shall be confined to\nmultiple dwellings, buildings or structures as provided in paragraph (a)\nof subdivision one of this section which are structurally sound, such\nlocal law or ordinance may provide that exemption or abatement from\ntaxation hereunder shall be restricted to multiple dwellings, buildings\nor structures as provided in paragraph (a) of subdivision one of this\nsection (a) which the local planning commission in any such city shall\ncertify will not interfere with projected public improvements or the\nclearance and rebuilding of substandard and insanitary areas, and (b)\nwhich the local building department certifies to be structurally sound\nand (c) which, if in an area approved for clearance, replanning,\nreconstruction or neighborhood rehabilitation pursuant to chapter eight\nhundred eighty-seven of the laws of nineteen hundred forty-five, as from\ntime to time amended, or if in an area designated for studies, tests,\ndemonstrations and other activities for the prevention and elimination\nof slums and urban blight pursuant to chapter six hundred eight of the\nlaws of nineteen hundred fifty-six as from time to time amended, or if\nin an area for which a preliminary or final plan has been approved\npursuant to chapters six hundred eighty-eight of the laws of nineteen\nhundred fifty-seven or nine hundred twenty-four of the laws of nineteen\nhundred fifty-eight, as from time to time amended, or chapter nine\nhundred seventy-one of the laws of nineteen hundred sixty, or if in an\narea for which an urban renewal plan or tests, studies or demonstrations\nhave been approved pursuant to article fifteen of the general municipal\nlaw, is certified by the project board for the area as a dwelling which\nis to be or has been improved in conformity with such replanning,\nreconstruction, neighborhood improvement, studies, tests, demonstrations\nor plan.\n 6. Notwithstanding the provisions of the multiple dwelling law,\nmultiple residence law, and any local law, ordinance, rule or\nregulation, any city to which this section is applicable acting through\nits local legislative body may provide, in a manner that shall be\nuniform as to any particular type or class of multiple dwelling,\nbuilding or structure as provided in paragraph (a) of subdivision one of\nthis section, that, any multiple dwelling, building or structure as\nprovided in paragraph (a) of subdivision one of this section to which\nalterations and improvements are made pursuant to this section and which\ndid not require a certificate of occupancy on April second, nineteen\nhundred forty-five, and, in the case of multiple dwellings, buildings or\nstructures as provided in paragraph (a) of subdivision one of this\nsection to which the multiple residence law is applicable, on July\nfirst, nineteen hundred fifty-two, may not be occupied lawfully after\nsuch date upon the completion of such alterations and improvements\nwithout a certificate of occupancy.\n 7. Any local law or ordinance may also provide any or all of the\nfollowing:\n (a) The benefits of this section shall not apply to any multiple\ndwelling, building or structure as provided in paragraph (a) of\nsubdivision one of this section in which rents, subsequent to\nalterations and improvements, shall exceed such amount, if any, as may\nbe fixed by the local legislative body or by the municipal agency\ndesignated by the local legislative body of the municipality involved,\nbased upon a standard formula.\n (b) (1) The benefits of this section shall not apply to any multiple\ndwelling, building or structure as provided in paragraph (a) of\nsubdivision one of this section which is not subject to the provisions\nof the emergency housing rent control law or to local law enacted\npursuant to the local emergency housing rent control act, where the\nlocal legislative body or other governing agency of the municipality\ninvolved shall prescribe that the benefits herein provided shall not\napply to such multiple dwelling, building or structure as provided in\nparagraph (a) of subdivision one of this section provided that such\nlocal legislative body or other governing agency shall not use the\nauthority conferred in this paragraph (b) to rescind any benefits\ngranted under former section five-h of the tax law prior to July first,\nnineteen hundred fifty-eight; and further provided that where the\nbenefits provided herein or under such former section five-h of the tax\nlaw are granted or had been granted on or after July first, nineteen\nhundred fifty-eight, to any multiple dwelling, building or structure\nwhich is decontrolled subsequent to the granting of such benefits, the\nlocal legislative body or other governing agency may withdraw such\nbenefits from such dwelling.\n (2) Any dwelling unit subject to rent regulation on or before the\neffective date of this subparagraph as a result of receiving a tax\nexemption or abatement pursuant to this section shall be subject to such\nregulation until the occurrence of the first vacancy of such unit after\nsuch benefits are no longer being received at which time such unit shall\nbe deregulated or if each lease and renewal thereof for such unit for\nthe tenant in residence at the time of the expiration of the tax benefit\nperiod has included a notice in at least twelve point type informing\nsuch tenant that the unit shall become subject to deregulation upon the\nexpiration of such tax benefit period and states the approximate date on\nwhich such tax benefit period is scheduled to expire, such dwelling unit\nshall be deregulated as of the end of the tax benefit period; unless\nsuch unit would have been subject to regulation under the rent\nstabilization law of nineteen hundred sixty-nine or the emergency tenant\nprotection act of nineteen seventy-four.\n (c) The benefits of this section shall apply to any multiple dwelling,\nbuilding or structure as provided in paragraph (a) of subdivision one of\nthis section occupied, as a rule, for permanent residence purposes and\nwhich is not used in whole or in part for single room occupancy and\nwhich is not subject to the provisions of the emergency housing rent\ncontrol law or to local law enacted pursuant to the local emergency\nhousing rent control act, provided that it is located within an area\nwhich has been designated by the local planning commission under the\nprovisions of section seventy-two-m of article fifteen of the general\nmunicipal law or where a program of local neighborhood improvement or\nhousing maintenance is being carried out under the supervision or with\nthe assistance of the local government and provided that the rents or\ncarrying charges, subsequent to alterations and improvements, (1) shall\nnot exceed such amount, if any, as may be fixed by the local legislative\nbody or by the municipal agency designated by the local legislative body\nof the municipality involved, based upon a standard formula, or (2)\nwhere the local legislative body so provides, shall not exceed such\namount, if any, as may be fixed for such multiple dwelling, building or\nstructure as provided in paragraph (a) of subdivision one of this\nsection pursuant to any local law enacted pursuant to the local\nemergency housing rent control act, and further provided that prior to\nsuch alterations and improvements, the multiple dwelling, building or\nstructure as provided in paragraph (a) of subdivision one of this\nsection, if a multiple dwelling, was either a multiple dwelling\noccupied, as a rule, as a temporary or transient residence or occupied,\nas a rule, for permanent residence purposes and used in whole or in part\nfor single room occupancy.\n (d) The benefits of this section shall apply to any building or\nstructure as provided in paragraph (a) of subdivision one of this\nsection, provided that the rents or carrying charges subsequent to\nconversion (1) shall not exceed such amount, if any, as may be fixed by\nthe local legislative body or by the municipal agency designated by the\nlocal legislative body of the municipality involved, based upon a\nstandard formula, or (2) where the local legislative body so provides,\nshall not exceed such amount, if any, as may be fixed for such dwelling\npursuant to any local law enacted pursuant to the local emergency\nhousing rent control act.\n 8. Notwithstanding any other provision of this section the benefits of\nthis section shall not apply to any private dwelling unless it is in an\narea defined by clause (c) of subdivision five of this section and is\ncertified by the project board for the area as a dwelling which is to be\nor has been improved in conformity with such replanning, reconstruction,\nneighborhood improvement, studies, tests, demonstrations or plan.\nNotwithstanding the foregoing, for purposes of this section and any\nlocal law enacted pursuant hereto a class A multiple dwelling may be\ndeemed to include any garden-type maisonette dwelling project consisting\nof a series of dwelling units which together and in their aggregate were\narranged or designed to provide three or more apartments and are\nprovided as a group collectively with all essential services such as,\nbut not limited to, water supply, house sewers and heat, and which are\nin existence and operated as a unit under single ownership on the date\nupon which an application for the benefits of this section is received\nby the city, even though certificates of occupancy were issued for\nportions thereof as private dwellings.\n 8-a. Notwithstanding the provisions of subdivision eight of this\nsection to the contrary, unless excluded by local law, the benefits of\nthis section may apply to: (i) alterations or improvements to any\nprivate dwelling; (ii) conversion of any private dwelling to a multiple\ndwelling; or (iii) conversion of any multiple dwelling to a private\ndwelling, provided that such alterations, improvements or conversion are\npart of a project which has applied for or is receiving benefits\npursuant to this section and shall be aided by a grant loan, or subsidy\nfrom any federal, state, or local agency or instrumentality.\n 9. (a) During the period of such exemptions the assessment on any such\nland and dwelling after such alterations and improvements, exclusive of\nthe increase in valuation which is subject to exemption in full or\nproportionally under subdivision one of this section, shall not exceed\nthe valuation of the previously existing dwelling appearing on the\nassessment rolls after the taxable status date immediately preceding the\ncommencement of such alterations and improvements plus the value of the\nland, any improvements other than those made under the provisions of\nthis section and the proportion of increased assessed valuation that is\nnot exempt from taxation under this section, which proportion shall\nremain constant during the term of the exemption. Where the alteration\nor improvement qualifies under subparagraph two of paragraph (a) of\nsubdivision two of this section or under clause (A) or (B) of\nsubparagraph one of paragraph (a) of subdivision eleven of this section,\nthe exemption shall also include an exemption from taxation for local\npurposes for twelve years upon that portion of the assessment, if any,\nwhich exceeds the transition assessment, as defined in subdivision two\nof section eighteen hundred five of this chapter, in effect at the time\nof the commencement of the exemption hereunder.\n (b) Notwithstanding the provisions of paragraph (a) of this\nsubdivision, except as provided in subparagraph three of this paragraph,\nfor buildings in which alterations, improvements or conversions\nqualifying for an exemption under this section are commenced on or after\nthe date on which this paragraph becomes a law:\n (1) The assessed value of the building during the period of the\nexemption shall be pro-rated between the exempt and taxable portions of\nthe building assessment so that throughout the exemption period the\nexempt portion of the building assessment shall bear the same\nrelationship to the non-exempt portion of the building assessment as it\ndid on the final tax roll on which an exemption was first available to\nsuch building for alterations or improvements made pursuant to this\nsection or on the last tax roll on which such ratio was changed by\nreason of additional improvements, whichever results in the greatest\npercentage of exempt assessed valuation; provided, however, that\nincreases in building value due to (i) additional improvements that do\nnot qualify for an exemption under this section, (ii) increases in the\nvalue of non-residential portions of the building, or (iii) non-exempt\nadditions to cubic content shall not be pro-rated, but shall be fully\ntaxable.\n (2) Reductions in the assessed value of the building during the period\nof the exemption shall be pro-rated between the taxable and exempt\nportions of the building assessment in the proportion which was\nestablished pursuant to subparagraph one of this paragraph on the final\ntax roll for the first fiscal year for which an exemption was granted\npursuant to this section, or on the last tax roll on which such ratio\nwas changed by reason of additional improvements, whether exempt or\nnon-exempt, or due to changes in the assessed value of fully taxable\nspace. In no case, however, shall the value of an exemption granted\npursuant to this section be reduced during the period for which such\nexemption was granted, by reason of a reduction in the assessed value of\nthe building, to an amount less than the amount of exemption appearing\non the first tax roll following the grant of this exemption.\n (3) During the first three years of such exemptions, the assessment on\nany such land and dwelling shall be determined in accordance with\nparagraph (a) of this subdivision.\n 10. In cities with a population of one million or more, any such local\nlaw or ordinance may require that, prior to application for any tax\nexemption or abatement pursuant to this section, relocation awards be\npaid to certain displaced manufacturing and other tenants under the\nterms and conditions set forth below:\n (a) Relocation awards for certain tenants of non-residential\nbuildings. Such local law or ordinance shall limit eligibility for such\na relocation award to former tenants and former subtenants of premises\nin a non-residential building which is the subject of an application for\nan alteration permit for conversion to a class A multiple dwelling, who:\n (1) leased and used the vacated premises to conduct a manufacturing,\nwarehousing, or wholesaling business for not less than two consecutive\nyears immediately prior to vacating;\n (2) vacated such premises on or after April first, nineteen hundred\neighty-one for any reason other than eviction for non-payment of rent;\n (3) vacated such premises (i) no earlier than twenty-four months prior\nto the filing date of an application for such alteration permit and (ii)\nno later than the completion of the conversion as evidenced by the\nissuance of a permanent certificate of occupancy for a class A multiple\ndwelling;\n (4) either purchased or leased for a term of not less than eighteen\nmonths other premises within such city with a floor area not less than\none-third of the floor area of the vacated premises;\n (5) relocated their business to such other premises within one year of\nvacating the vacated premises; and\n (6) paid all commercial rent or occupancy tax for the vacated\npremises. A subtenant shall be eligible to receive a relocation award\nnotwithstanding any lack of eligibility of its prime tenant.\n (b) Amount of relocation award. The relocation award shall not exceed\nthe greater of (1) all the base rent that accrued and was paid by the\neligible tenant during the final twenty-four months of its occupancy of\nthe vacated premises or (2) four dollars for each square foot that the\neligible tenant occupied in the vacated premises during the final\ntwenty-four months of its occupancy of the vacated premises. As used in\nthis subdivision, base rent shall be calculated in the same manner as\nbase rent is calculated for purposes of commercial rent or occupancy tax\nin the city of New York, or in any such city. However, the aggregate\naward payable to a prime tenant and any subtenants of such prime tenant\nshall not exceed the amount which would have been payable to the prime\ntenant had the prime tenant been eligible for an award based on the\nentire floor area it leased from the owner; and if such limitation\napplies, the awards shall be prorated based upon the total floor area\nused and occupied by each eligible tenant.\n (c) Payment of award. The relocation award shall become due and\npayable to an eligible tenant at the time the eligible tenant either\npurchases or leases other premises in accordance with paragraph (a)\nabove within such city and certifies eligibility to and demands payment\nof the award from the owner of the vacated building. If the relocation\naward is not paid within thirty days of such certification and demand,\ninterest shall accrue on the relocation award from the date of\ncertification and demand at the rate of twenty-four percent per annum.\n (d) Notice of claim. At any time after such certification and demand\nand prior to the date of the filing of an application for tax exemption\nor abatement for the vacated building pursuant to this section, an\neligible tenant who has not received a relocation award shall have a\nright to file a notice of claim. Such notice of claim shall be filed\nwith the county clerk of the county in which the vacated building is\nlocated and shall verify the claimant's name, its compliance with\neligibility requirements, the address of the vacated premises, the floor\narea it occupied, the name of the prime tenant if the claimant is a\nsubtenant, and all the base rent that accrued and was paid by the\nclaimant during the final twenty-four months of its occupancy.\n (e) Discharge of notice of claim. A notice of claim may be discharged\nby filing an undertaking with the clerk of the county in which the\npremises are located in an amount equal to the amount claimed in\naccordance with the procedures set forth in subdivision four of section\nnineteen of the lien law, or by payment into court of such amount in\naccordance with the procedures set forth in section fifty-five of the\nlien law.\n (f) Affidavit and notice as a condition to tax benefits. No tax\nexemption or abatement shall be granted pursuant to this section unless\nthe local municipal agency responsible for administering this section\nreceives an affidavit from the applicant which verifies that:\n (1) the applicant has caused to be published a notice in a newspaper\nof general circulation within the city, no later than sixty days prior\nto filing of an application for tax exemption or abatement pursuant to\nthis section, which advises former tenants and subtenants of their\nrights pursuant to any local law or ordinance enacted pursuant to this\nsubdivision; and\n (2) no notice of claim has been filed or all claims have been released\nby the claimant, secured in accordance with the provisions of paragraph\n(e) of this subdivision, or discharged as an improper claim by a court\norder.\n (g) Action on claim. If an eligible tenant or subtenant has duly filed\na notice of claim pursuant to this subdivision and does not receive a\nrelocation award as provided herein, it may commence an action against\nany applicant who filed a false affidavit pursuant to paragraph (f) of\nthis subdivision within three years of such filing or any security\nposted by such applicant pursuant to paragraph (e) of this subdivision.\nIn any action to enforce a claim pursuant to this subdivision, if the\ncourt finds that the claimant has wilfully exaggerated the amount of the\nclaim, the claimant may be held liable in damages for an amount not to\nexceed the proper relocation award. An eligible tenant in whose favor a\njudgment is entered shall be entitled to costs and reasonable legal fees\nand disbursements provided that such judgment is in excess of the amount\nwhich the applicant or owner offered to pay the eligible tenant.\n (h) Waiver. Any lease provision exempting, releasing or discharging\nthe obligation to pay a relocation award pursuant to this subdivision\nshall be deemed to be void as against public policy and wholly\nunenforceable.\n (i) Local zoning resolution. The provisions of this subdivision ten\nshall not apply if the local zoning resolution expressly provides for\nrelocation loans and/or grants in lieu of the benefits of this\nsubdivision.\n 11. Limitations of benefits. (a) Applicability. The provisions of this\nsubdivision apply to all conversions, alterations and improvements under\nthis section. However, they shall not apply to:\n (1) alterations or improvements under subparagraph two, three or four\nof paragraph (a) of subdivision one of this section, where carried out:\n (A) with the substantial assistance of grants, loans or subsidies from\nany federal, state or local agency or instrumentality, or any\nnot-for-profit philanthropic organization one of whose primary purposes\nis providing low or moderate income housing; or\n (B) with mortgage insurance by the New York city residential mortgage\ninsurance corporation or the state of New York mortgage agency; or\n (C) in a neighborhood preservation area, as such areas were designated\nby the New York city planning commission as of June first, nineteen\nhundred eighty-three, provided that such area or part of such area\nwherein the property is located has been approved as provided herein by\nthe city council of the city of New York. No such area or part thereof\nshall be approved by the city council until notice of the area or part\nthereof proposed to be approved is submitted to every community board\nwith jurisdiction over the area or part thereof, and (i) every such\ncommunity board has made and submitted to the city council comments as\nto the proposed approval, or (ii) forty-five days have elapsed since\nsuch notice was submitted to such community boards, whichever is\nearlier; and\n (D) pursuant to a program established by the federal housing\nadministration, federal national mortgage association, federal home loan\nmortgage corporation or government national mortgage association for the\nrehabilitation of existing multiple dwellings for persons of low or\nmoderate income, or a program of mortgage insurance for the\nrehabilitation of existing multiple dwellings pursuant to section two\nhundred twenty-three-f of the national housing act as amended, or a\nprogram of mortgage insurance established by the federal housing\nadministration for the rehabilitation of existing multiple dwellings for\npersons of low or moderate income; provided that properties receiving\nbenefits under such programs are located in a neighborhood strategy\narea, as defined, by the United States department of housing and urban\ndevelopment, or a neighborhood preservation area, as such areas were\ndesignated by the New York city planning commission, as of June first,\nnineteen hundred eighty-three.\n (2) alterations or improvements under subparagraphs five and six of\nparagraph (a) of subdivision one of this section; or\n (2-a) Conversion of buildings or structures to class A multiple\ndwellings pursuant to subparagraph one of paragraph (a) of subdivision\none of this section, where such conversions are undertaken by a\nnot-for-profit philanthropic organization or undertaken on properties\nwhich receive mortgage insurance from the New York city residential\nmortgage insurance corporation, or state of New York mortgage agency,\nprovided that such property is (i) located in a neighborhood\npreservation area as such areas were designated by the city planning\ncommission on June first, nineteen hundred eighty-three, and (ii) such\nproperty has been vacant since January first, nineteen hundred\neighty-two, and (iii) prior to becoming vacant such property was last\nutilized for governmental, educational, hospital or nursing home\npurposes.\n (3) conversions of residential units qualified for the protection of\narticle seven-C of the multiple dwelling law under subparagraph one of\nparagraph (a) of subdivision one of this section.\n (b) Abatement limitations. The amount of abatement under subdivision\ntwo of this section shall not exceed the certified reasonable cost of\nthe conversion, alteration or improvement, as determined under\nregulations of the local housing agency administering the local law,\nprovided that the amount of certified reasonable cost eligible for\nabatement under this section shall not exceed fifteen thousand dollars\nfor a dwelling unit of three and one-half rooms and a comparable amount\nfor dwelling units of other sizes, under regulations of the local\nhousing agency, and further provided that the amount of certified\nreasonable cost eligible for abatement under this section may exceed\nfifteen thousand dollars or such comparable amount per dwelling unit,\nbut not more than twenty-five percent above such amount, upon\napplication of the property owner and a determination by the housing\nagency that:\n (1) in the case of a conversion under subparagraph one of paragraph\n(a) of subdivision one of this section, the increased cost is necessary\nto comply with applicable law; or\n (2) in the case of an alteration or improvement under subparagraph two\nof paragraph (a) of subdivision one of this section, the increased cost\nis necessary to eliminate the unhealthy or dangerous conditions or\nreplace the inadequate and obsolete facilities in a satisfactory manner;\nor\n (3) in the case of an alteration or improvement under subparagraph\nthree of paragraph (a) of subdivision one of this section, the increased\ncost is necessary to conserve energy in a satisfactory manner; or\n (4) in the case of an alteration or improvement under subparagraph\nfour of paragraph (a) of subdivision one of this section, the increased\ncost, to the extent such cost is not offset by any and all tax credits\nreceived as a result of the alteration or improvement, is necessary to\ncomply with any provision of law regulating historic or landmark\nbuildings or structures.\n (b-1) For the purpose of the abatement limitations contained in the\nopening paragraph of paragraph (b) of this subdivision, the number of\nrooms in a dwelling unit shall be calculated in the following manner:\nEach dwelling unit with at least one room which either (1) contains no\ncooking facilities and measures at least one hundred fifty square feet,\nor (2) contains cooking facilities and measures at least two hundred\nthirty square feet, shall count as two and one-half rooms. Every other\nroom in the dwelling unit separated by either walls or doors, including\nbedrooms, shall count as an additional room, provided, however, that\nkitchens, cooking facilities, bathrooms, corridors or balconies shall\nnot count as an additional room. To be included, a room must meet the\nrequirements of habitability as provided in the relevant housing\nmaintenance code.\n (c) Exemption limitations. (1) The increase in assessed valuation of\nthe real property located in the borough of Manhattan south of or\nadjacent to the south side of one hundred tenth street resulting from\nthe conversion, alteration or improvement under paragraph (a) of\nsubdivision one of this section, shall be exempt from taxation as\nprovided in this section, only to the extent provided in this\nsubparagraph. The amount of the increased assessed valuation that is\nexempt from taxation shall depend on the amount of the total assessed\nvaluation per dwelling unit calculated by dividing the amount of the\ntotal assessed valuation of the property, as determined under this\nchapter, by the number of dwelling units in the building after\ncompletion of the conversion, alteration or improvement. The amount of\nincreased assessed valuation that will be exempt from taxation for\nbuildings with total assessed valuation per dwelling unit of less than\nthirty-eight thousand dollars shall be calculated pursuant to the\nfollowing formula: (A) any portion of total assessed valuation of the\nproperty attributable to the first eighteen thousand dollars of total\nassessed valuation per dwelling unit, to the extent it represents\nincreased assessed valuation, shall be one hundred percent exempt; (B)\nany portion of total assessed valuation attributable to the next four\nthousand dollars of total assessed valuation per dwelling unit, to the\nextent it represents increased assessed valuation, shall be seventy-five\npercent exempt; (C) any portion of total assessed valuation attributable\nto the next four thousand dollars of total assessed valuation per\ndwelling unit, to the extent it represents increased assessed valuation,\nshall be fifty percent exempt; (D) any portion of total assessed\nvaluation attributable to the next four thousand dollars of total\nassessed valuation per dwelling unit, to the extent it represents\nincreased assessed valuation, shall be twenty-five percent exempt; (E)\nany portion of total assessed valuation attributable to the next eight\nthousand dollars of total assessed valuation per dwelling unit, to the\nextent it represents increased assessed valuation per dwelling unit,\nshall be fully taxable. Property with a total assessed valuation per\ndwelling unit of thirty-eight thousand dollars or more shall not be\neligible for a tax exemption under this section.\n (2) In calculating the amount of increased assessed valuation that\nwill be exempt from taxation pursuant to the formula in subparagraph one\nof this paragraph, the full amount of total assessed valuation that does\nnot represent increased assessed valuation shall be applied in such\nformula prior to the inclusion of any amount of increased assessed\nvaluation.\n (3) Where the real property is occupied in part for residential\npurposes and in part for non-residential purposes, the assessed\nvaluation of the property shall be appropriately allocated between the\nresidential and non-residential portions. In computing the total\nassessed valuation per dwelling unit under this paragraph, only the\namount of valuation so allocated to the residential portion shall be\nconsidered.\n (4) Commencing with the assessment roll for the year nineteen hundred\neighty-four, where there has been a change in the level of assessment\nfrom the assessment roll of the prior year of properties receiving\nexemptions under this section, the local agency responsible for\nassessment of real property may petition the commissioner to certify the\npercentage of such change for the purposes of this section. In such\npetition, the local agency shall submit such information as the\ncommissioner shall require in order to certify the percentage of such\nchange. The commissioner may also make such a certification on its own\nmotion. Upon receipt of such certification from the commissioner, the\nlocal housing agency may modify the dollar values of total assessed\nvaluation per dwelling unit in subparagraph one of this paragraph to\nreflect the percentage change in the level of assessment as shown in\nsuch certification. As used in this subparagraph, the term "change in\nthe level of assessment" means the net increase or decrease in the\nassessed valuation of properties in the assessing unit that received\nexemptions under this section in the current year as compared to those\nthat received exemptions under this section in the prior year as a\nresult of assessing such properties at a higher or lower ratio of full\nvalue.\n (5) (A) Notwithstanding the provisions of subparagraph one of this\nparagraph, the local housing agency may reduce or remove the limitations\non the exemption from taxation provided in such subparagraph with\nrespect to a particular property undergoing alteration or improvement,\nupon application of the property owner and a determination by the agency\nthat:\n (i) The increased benefit will increase the number of dwelling units\nor improve the quality of dwelling units that will be affordable to\npersons of low or moderate income; and\n (ii) The increased benefit is necessary to make economically viable\nthe increase in the number of dwelling units or improvement in the\nquality of dwelling units that will be affordable to persons of low or\nmoderate income.\n (B) As used in this subparagraph, the term persons of low or moderate\nincome shall be persons who would qualify for housing subsidies pursuant\nto section two hundred thirty-five of the national housing act, as\namended, at one hundred thirty-five percent of the income limitations\nprovided herein.\n (C) Upon receiving an application under this subparagraph in proper\nform, the local housing agency shall immediately submit it to the\ncommunity board for the area in which the project is located, which may,\nwithin forty-five days of receiving it and after a public hearing, make\nrecommendations to the agency as to the application. The agency shall\nact on the application within sixty days of receiving it from the\nproperty owner in proper form, but not before expiration of the time for\nthe community board to make its recommendations, unless the board has\nacted sooner.\n (d) The local housing agency may set forth preliminarily the terms of\na determination under paragraph (b) or (c) of this subdivision prior to\nthe commencement of the conversion, alteration or improvement. Any such\ndetermination shall take effect after completion of the work.\n (e) Publication of local housing agency determinations. Any\ndetermination of the local housing agency to increase an abatement under\nparagraph (b) of this subdivision or to reduce or remove the exemption\nlimitations under paragraph (c) of this subdivision shall state the\nbasis for the determination and the data on which the determination was\nbased. Such determination shall be published in the official publication\nof the city, or if no such publication exists in a newspaper with\ngeneral circulation in the city, for five consecutive days after the\ndetermination is rendered.\n (f) Proration of assessed valuation. Notwithstanding the provisions of\nparagraph (b) of subdivision nine of this section, the provisions of\nthis paragraph shall apply to changes in assessments resulting from\nconversion, alterations or improvements which are not subject to the\nabatement or exemption limitations of paragraphs (b) and (c) of this\nsubdivision. During the period of such exemptions the assessment on any\nsuch land and dwelling after such alterations and improvements,\nexclusive of the increase in valuation which is subject to exemption in\nfull or proportionally under subdivision one of this section, shall not\nexceed the valuation of the previously existing dwelling appearing on\nthe assessment rolls after the taxable status date immediately preceding\nthe commencement of such alterations and improvements plus the value of\nthe land, any improvements other than those made under the provisions of\nthis section and the proportion of increased assessed valuation that is\nnot exempt from taxation under this section, which proportion shall\nremain constant during the term of the exemption. Where the alteration\nor improvement qualified under subparagraph two of paragraph (a) of\nsubdivision two of this section or under clause (A) or (B) of\nsubparagraph one of paragraph (a) of this subdivision, the exemption\nshall also include an exemption from taxation for local purposes for\ntwelve years upon that portion of the assessment, if any, which exceeds\nthe transition assessment, as defined in subdivision two of section\neighteen hundred five of this chapter, in effect at the time of\ncommencement of the exemption hereunder.\n 12. Harassment. (a) The provisions of this subdivision apply to and\nare additional requirements for claiming or receiving:\n (1) any tax exemption under this section; or\n (2) any tax abatement under this section where the certified\nreasonable cost per dwelling unit of the conversion, alteration or\nimprovement (including the cost of any conversion, alteration or\nimprovement for which an abatement was approved within four years prior\nto commencement of the conversion, alteration or improvement) exceeds\nseven thousand five hundred dollars.\n (b) The owner of the property shall, not less than thirty days before\nthe commencement of the conversion, alteration or improvement\n(hereinafter referred to as the "cut-off date"), file with the local\nhousing agency administering the local law, an affidavit or, where any\ninformation referred to in subparagraph one of this paragraph changes\nprior to applying for or claiming any benefit under this section, an\namending affidavit, setting forth the following information:\n (1) every owner of record and owner of a substantial interest in the\nproperty or entity owning the property or sponsoring the conversion,\nalteration or improvement;\n (2) a statement that none of such persons had, within the five years\nprior to the cut-off date, been found to have harassed or unlawfully\nevicted tenants by judgment or determination of a court or agency\n(including a non-governmental agency having appropriate legal\njurisdiction) under the penal law, any state or local law regulating\nrents or any state or local law relating to harassment of tenants or\nunlawful eviction; and\n (3) any change in the information required to be set forth.\n (c) No conversion, alteration or improvement subject to this\nsubdivision shall be eligible for tax exemption or tax abatement under\nthis section where:\n (1) any affidavit required under this subdivision has not been filed;\nor\n (2) any such affidavit contains a willful misrepresentation or\nomission of any material fact; or\n (3) any person referred to in subparagraph one of paragraph (b) of\nthis subdivision has been found to have harassed or unlawfully evicted\ntenants as described in that paragraph, until and unless the finding is\nreversed on appeal, provided that any such finding after the cut-off\ndate shall not apply to or affect any tax abatement or exemption for the\nconversion, alteration or improvement covered by the affidavit.\n (d) The local housing agency administering this law and the local\ngovernment agency responsible for real property tax assessment shall\nmaintain a list of affidavits as described in paragraph (b) of this\nsubdivision. Each agency shall review that list with respect to each\napplication or claim for benefits subject to this subdivision.\n (e) "Substantial interest" as used in subparagraph one of paragraph\n(b) of this subdivision shall mean ownership of an interest of ten per\ncentum or more in the property or entity owning the property or\nsponsoring the conversion, alteration or improvement.\n (f) Where the conversion, alteration or improvement is commenced\nbefore August first, nineteen hundred eighty-three, the cut-off date\nshall be as set forth in this subdivision, but no affidavit shall be\nrequired to be filed until thirty days after the effective date of this\nsubdivision.\n 13. Additional limitation. The benefits of this section shall not\napply to any conversion of or alteration or improvement to any class B\nmultiple dwelling or class A multiple dwelling used in whole or in part\nfor single room occupancy, regardless of the status or use of the\nbuilding after the conversion, alteration or improvement unless such\nconversion, alteration or improvement is carried out with the\nsubstantial assistance of grants, loans or subsidies from any federal,\nstate or local agency or instrumentality.\n 14. Conversion of properties to residential use. The benefits of this\nsection shall not apply to any conversion of property to residential use\nwhere the conversion was contrary to the applicable zoning resolution\nand was permitted only by virtue of a variance as to use, unless the\nlocal law is amended to explicitly provide that benefits shall be\navailable in such cases. The provisions of this subdivision do not apply\nto conversions of residential units qualified for the protection of\narticle seven-C of the multiple dwelling law under subparagraph one of\nparagraph (a) of subdivision one of this section.\n 15. Authority of city to limit local law. Where a city enacts or\namends a local law under this section, the local law may restrict, limit\nor condition the eligibility, scope or amount of the benefits under the\nlocal law in any manner, provided that the local law may not grant\nbenefits beyond those provided in this section.\n 16. Institutional lenders; cost certification. The rules of the local\nhousing agency administering such local law or ordinance shall make\nprovision for circumstances in which an institutional mortgage lender\n(as defined in such rules) which has provided financing for alterations\nor improvements to a building or structure and has become a successor in\ninterest (as defined in such rules) to the original owner of such\nbuilding or structure, after diligent efforts to obtain original\ncontracts, checks and other records normally reviewed by such agency to\nverify claimed costs, is unable to obtain part or all of such records.\nUnder such circumstances the rules shall permit substitution in whole or\nin part, as the case may be, of documentation certified by the lender\nshowing the amounts advanced by the lender pursuant to the mortgage loan\nto finance such alterations or improvements, along with such other\ndocumentation as the agency may require.\n 17. (a) For purposes of this subdivision, "substantial governmental\nassistance" shall mean:\n (i) grants, loans or subsidies from any federal, state or local agency\nor instrumentality in furtherance of a program for the development of\naffordable housing approved by the local housing agency, including,\nwithout limitation, financing or insurance provided by the state of New\nYork mortgage agency of the New York city residential mortgage insurance\ncorporation; or\n (ii) a written agreement between a housing development fund\ncorporation and the local housing agency limiting the incomes of persons\nentitled to purchase shares or rent housing accommodations therein.\n (b) Any local law or ordinance providing for benefits pursuant to this\nsection must also provide the following with respect to conversions,\nalterations or improvements completed on or after December thirty-first,\ntwo thousand eleven:\n (i) except as otherwise provided in this section with respect to\nmultiple dwellings, buildings and structures owned and operated either\nby limited-profit housing companies established pursuant to article two\nof the private housing finance law or redevelopment companies\nestablished pursuant to article five of the private housing finance law,\nor with respect to a group of multiple dwellings that was developed as a\nplanned community and that is owned as two separate condominiums\ncontaining a total of ten thousand or more dwelling units, any multiple\ndwelling, building or structure that is owned as a cooperative or a\ncondominium that has an average assessed value of thirty thousand\ndollars or more per dwelling unit shall only be eligible for such\nbenefits if the alterations or improvements for which such multiple\ndwelling, building or structure has applied for the benefits pursuant to\nthis section were carried out with substantial governmental assistance;\nand\n (ii) no benefits pursuant to this section shall be granted for the\nconversion of any non-residential building or structure into a class A\nmultiple dwelling unless such conversion was carried out with\nsubstantial governmental assistance.\n 18. Any local law or ordinance providing for benefits pursuant to this\nsection must also provide, with respect to conversions, alterations or\nimprovements for which application was made after the effective date of\nthis subdivision, that if such conversions, alterations or improvements\nare not completed on the date upon which such local housing agency\ninspects the items of work claimed in such application, the local\nhousing agency shall require the applicant to pay two times the actual\ncost for any additional inspections needed to verify the completion of\nsuch conversion, alteration or improvement.\n 19. The revocation of benefits granted to any multiple dwelling,\nbuilding or structure pursuant to this section shall not exempt any\ndwelling unit therein from continued compliance with the requirements of\nthis section or of any local law or ordinance providing for benefits\npursuant to this section.\n 20. Notwithstanding the provisions of any general, special or local\nlaw or any local ordinance providing for benefits pursuant to this\nsection the department may require that the applications for exemption\nor abatement under this section that are filed on or after a date\nspecified in such local law or ordinance be filed electronically.\n