A10252B-2011 Actions

• Jun 18, 2012: amend and recommit to rules 10252c
• Jun 15, 2012: amend and recommit to rules 10252b
• Jun 15, 2012: print number 10252a
• Jun 15, 2012: amend (t) and recommit to rules
• Jun 5, 2012: reported referred to rules
• May 23, 2012: reported referred to codes
• May 16, 2012: referred to housing

A10252B-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 10252--B
 I N  ASSEMBLY
 May 16, 2012
 
 Introduced  by  M.  of  A.  V. LOPEZ,  LENTOL,  MILLMAN -- read once and
 referred to the Committee on Housing -- reported and referred  to  the
 Committee  on Codes -- reported and referred to the Committee on Rules
 -- Rules Committee discharged,  bill  amended,  ordered  reprinted  as
 amended  and  recommitted  to the Committee on Rules -- again reported
 from said committee with amendments, ordered reprinted as amended  and
 recommitted to said committee
 

AN ACT to amend the multiple dwelling law and the real property tax law,
 in  relation to interim multiple dwellings in a city with a population
 of one million or more
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. Subdivision 5 of section 281 of the multiple dwelling law,
 as amended by chapter 139 of the laws of 2011, is  amended  to  read  as
 follows:

 5. Notwithstanding the provisions of paragraphs (i), (iii) and (iv) of
 subdivision  two of this section, but subject to paragraphs (i) and (ii)
 of subdivision one of this section and paragraph (ii) of subdivision two
 of this section, the term  "interim  multiple  dwelling"  shall  include
 buildings,  structures or portions thereof that are located in a city of
 more than one  million  persons  which  were  occupied  for  residential
 purposes  as  the residence or home of any three or more families living
 independently from one another for a period of twelve consecutive months
 during the period commencing January  first,  two  thousand  eight,  and
 ending December thirty-first, two thousand nine, provided that the unit:

 is  not  located  in  a basement or cellar and has at least one entrance
 that does not require passage through another residential unit to obtain
 access to the unit, has at least one window opening onto a street  or  a
 lawful  yard or court as defined in the zoning resolution for such muni
 cipality, and is at least [five hundred fifty] FOUR HUNDRED square  feet
 in  area.  The term "interim multiple dwelling" as used in this subdivi
 sion shall not include (i) any building in an industrial  business  zone
 established  pursuant to chapter six-D of title twenty-two of the admin
 istrative code of the city of New York except that  a  building  in  the
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD15755-07-2
 
       A. 10252--B                         2
 Williamsburg/Greenpoint  or North Brooklyn industrial business zones and
 a building located in that portion of the Long  Island  city  industrial
 business  zone  that has frontage on either side of forty-seventh avenue
 or is located north of forty-seventh avenue and south of Skillman avenue
 or in that portion of the Long Island city industrial business zone that
 is located north of forty-fourth drive, south of Queens plaza north, and
 west  of twenty-third street may be included in the term "interim multi
 ple dwelling," or (ii) units in any building, OTHER THAN A BUILDING THAT
 IS ALREADY DEFINED AS AN "INTERIM MULTIPLE DWELLING" PURSUANT TO  SUBDI
 VISION  ONE,  TWO, THREE OR FOUR OF THIS SECTION, that, at the time this
 subdivision shall  take  effect  AND  CONTINUING  AT  THE  TIME  OF  THE
 SUBMISSION  OF AN APPLICATION FOR COVERAGE BY ANY PARTY, also contains a
 use actively and currently pursued, which use is set forth in use groups
 fifteen through eighteen, as described in the zoning resolution of  such
 municipality in effect on June twenty-first, two thousand ten, and which
 the  loft  board  has  determined  in rules and regulation is inherently
 incompatible with residential use in the same building, provided that if
 a building does not contain such active uses at the time  this  subdivi
 sion  takes effect, no subsequent use by the owner of the building shall
 eliminate the protections of this section for any residential  occupants
 in the building already qualified for such protections. The term "inter
 im  multiple  dwelling,"  as used in this subdivision shall also include
 buildings, structures or portions thereof that are located north of West
 24th Street and south of West 27th Street and west of tenth  avenue  and
 east of eleventh avenue in a city of more than one million persons which
 were  occupied  for residential purposes as the residence or home of any
 two or more families living independently from one another for a  period
 of twelve consecutive months during the period commencing January first,
 two  thousand eight, and ending December thirty-first, two thousand nine
 and subject to all the conditions and limitations  of  this  subdivision
 other  than  the  number  of  units  in the building. A reduction in the
 number of occupied residential units in a  building  after  meeting  the
 aforementioned  twelve consecutive month requirement shall not eliminate
 the protections of this section for any remaining residential  occupants
 qualified  for  such protections. Non-residential space in a building as
 of the effective date of this subdivision shall be offered for  residen
 tial  use only after the obtaining of a residential certificate of occu
 pancy for such space and such space shall be exempt from  this  article,
 even if a portion of such building may be an interim multiple dwelling.
 

S  2.  Subdivision  2  of section 286 of the multiple dwelling law, as
 amended by chapter 414 of the laws of 1999, subparagraphs (A) and (B) of
 paragraph (ii) and paragraph (iii) as amended by chapter 135 of the laws
 of 2010, is amended to read as follows:

 2. (i) Prior to compliance with safety and fire  protection  standards
 of  article seven-B of this chapter, residential occupants qualified for
 protection pursuant to this article shall be entitled to continued occu
 pancy, provided that the unit is their primary residence, and shall  pay
 the same rent, including escalations, specified in their lease or rental
 agreement  to the extent to which such lease or rental agreement remains
 in effect or, in the absence of a lease or rental  agreement,  the  same
 rent  most recently paid and accepted by the owner; if there is no lease
 or other rental agreement in effect, rent adjustments prior  to  article
 seven-B  compliance  shall be in conformity with guidelines to be set by
 the loft board for such residential occupants within six months from the
 effective date of this article.
 
       A. 10252--B                         3
 (ii) In addition to any rent adjustment pursuant to paragraph  (i)  of
 this  subdivision, on or after June twenty-first, nineteen hundred nine
 ty-two, the rent for residential units  in  interim  multiple  dwellings
 that  are not yet in compliance with the requirements of subdivision one
 of  section two hundred eighty-four of this article shall be adjusted as
 follows:

 (A) Upon the owners' filing of an alteration application, as  required
 by  paragraph  (ii),  (iii),  (iv),  (v),  or (vi) of subdivision one of
 section two hundred eighty-four of this article, an adjustment equal  to
 [six]  THREE  percent  of the rent in effect at the time the owner files
 the alteration application.
 (B) Upon obtaining an alteration  permit,  as  required  by  paragraph
 (ii),  (iii),  (iv),  (v),  or  (vi)  of  subdivision one of section two
 hundred eighty-four of this article,  an  adjustment  equal  to  [eight]
 THREE  percent  of  the rent in effect at the time the owner obtains the
 alteration permit.
 (C) Upon achieving compliance with the standards of  safety  and  fire
 protection set forth in article seven-B of this chapter for the residen
 tial portions of the building, an adjustment equal to [six] FOUR percent
 of the rent in effect at the time the owner achieves such compliance.
 (D)  Owners who filed an alteration application prior to the effective
 date of this subparagraph shall be entitled to a prospective  adjustment
 equal  to six percent of the rent on the effective date of this subpara
 graph.
 (E) Owners who obtained an alteration permit  prior  to  June  twenty
 first,  nineteen  hundred  ninety-two shall be entitled to a prospective
 adjustment equal to fourteen percent of the rent on  June  twenty-first,
 nineteen hundred ninety-two.
 (F)  Owners  who  achieved compliance with the standards of safety and
 fire protection set forth in article seven-B of  this  chapter  for  the
 residential  portions  of the building prior to June twenty-first, nine
 teen hundred ninety-two shall be entitled to  a  prospective  adjustment
 equal  to  twenty  percent  of  the  rent on June twenty-first, nineteen
 hundred ninety-two.
 (iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi
 sion shall not apply to units which were rented at  market  value  after
 June  twenty-first,  nineteen hundred eighty-two and prior to June twen
 ty-first, nineteen hundred ninety-two. This paragraph shall not apply to
 units made subject to this article by subdivision five  of  section  two
 hundred eighty-one of this article.
 (iv)  Payment  of  any  rent adjustments pursuant to paragraph (ii) of
 this subdivision shall commence  the  month  immediately  following  the
 month in which the act entitling the owner to the adjustment occurred.
 

S 3. The provisions of subdivision (c) of section 11-245 of the admin
 istrative  code  of  the city of New York shall not be applicable to any
 multiple dwelling located on lots numbered 13 and 14 of Manhattan  block
 numbered  51, lots numbered 17, 18, and 21 of Manhattan block number 90,
 lots numbered 7, 8, 10, 11, 57 and 111 of Manhattan block numbered 1010,
 and lots numbered 33, 34 and 35 of Manhattan block numbered 1259 as such
 lots and blocks are numbered on the effective date of this act, provided
 that the construction of such multiple dwellings on those lots commences
 on or after January 1, 2007,  and  on  or  before  June  21,  2017,  and
 provided  that for all such multiple dwellings the department of housing
 preservation and development of New York City shall impose a requirement
 and certify that twenty percent of the units on site are  affordable  to
 households  of low and moderate income pursuant subdivision 7 of section
 
       A. 10252--B                         4
 421-a of the real property tax law. The provisions of subdivision (c) of
 section 11-245 of the administrative code of the city of New York  shall
 not  be applicable to any multiple dwelling that is located on lot 10 of
 Manhattan  block  number  123, as such lot and block are numbered on the
 effective date of this act, provided that construction of such  multiple
 dwelling  commenced  on  or after January 1, 2007, and on or before June
 21, 2012, and provided further that  the  individual  or  agent  thereof
 seeking  benefits  pursuant to 421-a of the real property tax law enters
 into and fulfills the requirements of a memorandum of understanding with
 the city of New York Department of Housing Preservation and  Development
 to  fund  in  an  amount  not  less than $15 million the construction of
 affordable rental housing within the  City  of  New  York  and  provided
 further  that,  notwithstanding  any  other provision of law, no benefit
 granted pursuant to section 421-a of the real property tax law for  such
 multiple dwelling shall be granted for a period in excess of ten years.
 

S  4.  Subparagraph  (i)  of paragraph (a) of subdivision 2 of section
 421-a of the real property tax law, as amended by section 38 of  part  B
 of chapter 97 of the laws of 2011, is amended to read as follows:

 (i)  Within  a  city  having  a population of one million or more, new
 multiple dwellings, except hotels, shall be  exempt  from  taxation  for
 local  purposes,  other than assessments for local improvements, for the
 tax year or years immediately following taxable status  dates  occurring
 subsequent   to   the  commencement  and  prior  to  the  completion  of
 construction, but not to exceed three such tax years,  [except  for  new
 multiple  dwellings  the construction of which commenced between January
 first, two thousand seven, and June thirtieth, two thousand nine,  shall
 have  an additional thirty-six months to complete construction and shall
 be eligible for full exemption from taxation for the first  three  years
 of  the  period  of  construction;  any  eligible  project that seeks to
 utilize the six-year period of construction authorized by  this  section
 must  apply for a preliminary certificate of eligibility within one year
 of the effective date of the rent act of 2011,  provided,  however  that
 such  multiple  dwellings shall be eligible for a maximum of three years
 of benefits during the construction period,] and shall  continue  to  be
 exempt from such taxation in tax years immediately following the taxable
 status date first occurring after the expiration of the exemption herein
 conferred  during  construction  so  long  as  used at the completion of
 construction for dwelling purposes for a period not to exceed ten  years
 in the aggregate after the taxable status date immediately following the
 completion thereof, as follows:

 (A)  except as otherwise provided herein there shall be full exemption
 from taxation during the period of construction or the period  of  three
 years  immediately  following  commencement  of  construction, whichever
 expires sooner, [except for new multiple dwellings the  construction  of
 which  commenced  between  January  first,  two thousand seven, and June
 thirtieth, two thousand nine, shall have an additional thirty-six months
 to complete construction and shall be eligible for full  exemption  from
 taxation  for  the  first three years of the period of construction; any
 eligible  project  that  seeks  to  utilize  the  six-year   period   of
 construction  authorized  by  this  section must apply for a preliminary
 certificate of eligibility within one year of the effective date of  the
 rent  act  of 2011, provided, however that such multiple dwellings shall
 be eligible for  a  maximum  of  three  years  of  benefits  during  the
 construction period,] and for two years following such period;
 (B)  followed  by  two years of exemption from eighty per cent of such
 taxation;
 
       A. 10252--B                         5
 (C) followed by two years of exemption from sixty  per  cent  of  such
 taxation;
 (D)  followed  by  two  years of exemption from forty per cent of such
 taxation;
 (E) followed by two years of exemption from twenty per  cent  of  such
 taxation;
 The  following  table  shall  illustrate  the  computation  of the tax
 exemption:

 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
 Exemption
 During Construction (maximum three years)[;       100%
 except construction commenced between January
 first, two thousand seven and June
 thirtieth, two thousand nine (maximum
 three years)]
 Following completion of work
 Year:

 1                                                100%
 2                                                100
 3                                                 80
 4                                                 80
 5                                                 60
 6                                                 60
 7                                                 40
 8                                                 40
 9                                                 20
 10                                                 20
 

S 5. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
 of section 421-a of the real property tax law, as amended by section  39
 of  part  B  of  chapter  97  of the laws of 2011, is amended to read as
 follows:

 (A) Within a city having a population of one million or more the local
 housing agency may adopt rules and regulations providing that except  in
 areas excluded by local law new multiple dwellings, except hotels, shall
 be  exempt  from taxation for local purposes, other than assessments for
 local improvements, for the tax  year  or  years  immediately  following
 taxable  status dates occurring subsequent to the commencement and prior
 to the completion of construction, but not  to  exceed  three  such  tax
 years,  [except  for  new  multiple  dwellings the construction of which
 commenced between January first, two thousand seven, and June thirtieth,
 two thousand  nine,  shall  have  an  additional  thirty-six  months  to
 complete  construction  and  shall  be  eligible for full exemption from
 taxation for the first three years of the period  of  construction;  any
 eligible   project   that  seeks  to  utilize  the  six-year  period  of
 construction authorized by this section must  apply  for  a  preliminary
 certificate  of eligibility within one year of the effective date of the
 rent act of 2011, provided, however that such multiple  dwellings  shall
 be  eligible  for  a  maximum  of  three  years  of  benefits during the
 construction period,] and shall continue to be exempt from such taxation
 in tax years immediately following the taxable status date first  occur
 ring  after the expiration of the exemption herein conferred during such
 construction so long as used  at  the  completion  of  construction  for
 
       A. 10252--B                         6
 dwelling purposes for a period not to exceed fifteen years in the aggre
 gate, as follows:

 a.  except  as otherwise provided herein there shall be full exemption
 from taxation during the period of construction or the period  of  three
 years  immediately  following  commencement  of  construction, whichever
 expires sooner, [except for new multiple dwellings the  construction  of
 which  commenced  between  January  first,  two thousand seven, and June
 thirtieth, two thousand nine, shall have an additional thirty-six months
 to complete construction and shall be eligible for full  exemption  from
 taxation  for  the  first three years of the period of construction; any
 eligible  project  that  seeks  to  utilize  the  six-year   period   of
 construction  authorized  by  this  section must apply for a preliminary
 certificate of eligibility within one year of the effective date of  the
 rent  act  of 2011, provided, however that such multiple dwellings shall
 be eligible for  a  maximum  of  three  years  of  benefits  during  the
 construction period,] and for eleven years following such period;
 b. followed by one year of exemption from eighty percent of such taxa
 tion;
 c.  followed by one year of exemption from sixty percent of such taxa
 tion;
 d. followed by one year of exemption from forty percent of such  taxa
 tion;
 e. followed by one year of exemption from twenty percent of such taxa
 tion.
 

S  6. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
 2 of section 421-a of the real property tax law, as amended  by  section
 40  of  part  B of chapter 97 of the laws of 2011, is amended to read as
 follows:

 (A) Within a city having a population of one million or more the local
 housing agency may adopt rules and regulations providing that new multi
 ple dwellings, except hotels, shall be exempt from  taxation  for  local
 purposes,  other  than  assessments  for local improvements, for the tax
 year or years  immediately  following  taxable  status  dates  occurring
 subsequent   to   the  commencement  and  prior  to  the  completion  of
 construction, but not to exceed three such tax years,  [except  for  new
 multiple  dwellings  the construction of which commenced between January
 first, two thousand seven, and June thirtieth, two thousand nine,  shall
 have  an additional thirty-six months to complete construction and shall
 be eligible for full exemption from taxation for the first  three  years
 of  the  period  of  construction;  any  eligible  project that seeks to
 utilize the six-year period of construction authorized by  this  section
 must  apply for a preliminary certificate of eligibility within one year
 of the effective date of the rent act of 2011,  provided,  however  that
 such  multiple  dwellings shall be eligible for a maximum of three years
 of benefits during the construction period,] and shall  continue  to  be
 exempt from such taxation in tax years immediately following the taxable
 status date first occurring after the expiration of the exemption herein
 conferred  during such construction so long as used at the completion of
 construction for dwelling purposes for a period not  to  exceed  twenty
 five years in the aggregate, provided that the area in which the project
 is situated is a neighborhood preservation program area as determined by
 the local housing agency as of June first, nineteen hundred eighty-five,
 or  is  a  neighborhood  preservation area as determined by the New York
 city planning commission as of June first, nineteen hundred eighty-five,
 or is an area that was eligible for mortgage insurance provided  by  the
 rehabilitation  mortgage insurance corporation as of May first, nineteen
 
       A. 10252--B                         7
 hundred ninety-two or is an area receiving funding  for  a  neighborhood
 preservation  project  pursuant  to the neighborhood reinvestment corpo
 ration act (42 U.S.C. SS180 et seq.)  as of June first, nineteen hundred
 eighty-five, as follows:

 a.  except  as otherwise provided herein there shall be full exemption
 from taxation during the period of construction or the period  of  three
 years  immediately  following  commencement  of  construction, whichever
 expires sooner, [except for new multiple dwellings the  construction  of
 which  commenced  between  January  first,  two thousand seven, and June
 thirtieth, two thousand nine, shall have an additional thirty-six months
 to complete construction and shall be eligible for full  exemption  from
 taxation  for  the  first three years of the period of construction; any
 eligible  project  that  seeks  to  utilize  the  six-year   period   of
 construction  authorized  by  this  section must apply for a preliminary
 certificate of eligibility within one year of the effective date of  the
 rent  act  of 2011, provided, however that such multiple dwellings shall
 be eligible for  a  maximum  of  three  years  of  benefits  during  the
 construction period,] and for twenty-one years following such period;
 b. followed by one year of exemption from eighty percent of such taxa
 tion;
 c.  followed by one year of exemption from sixty percent of such taxa
 tion;
 d. followed by one year of exemption from forty percent of such  taxa
 tion;
 e. followed by one year of exemption from twenty percent of such taxa
 tion.
 

S 7. Severability clause. If any clause, sentence, paragraph, subdivi
 sion,  section  or subpart of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or  subpart  thereof  directly involved in the controversy in which such
 judgment shall have been rendered. It  is  hereby  declared  to  be  the
 intent  of the legislature that this act would have been enacted even if
 such invalid provisions had not been included herein.
 

S 8. This act shall take effect immediately, provided,  however,  that
 the  provisions  of section one of this act shall be deemed to have been
 in full force and effect  on  and  after  July  1,  2010;  and  provided
 further, however, that the provisions of section three of this act shall
 be  deemed  to  have been in full force and effect on and after December
 31, 2007; and provided further, however, that the provisions of sections
 four, five and six of this act shall be deemed  to  have  been  in  full
 force and effect on and after December 28, 2010; and provided that, with
 respect  to any application for a preliminary certificate of eligibility
 that is filed no later than June 24,  2012,  or  that  is  filed  for  a
 project  that  was  the  subject  of mortgage foreclosure proceedings or
 other lien enforcement litigation by a lender  on  or  before  June  24,
 2012, such project shall be subject to that portion of the definition of
 "commence"  contained  in item (1) of clause (iv) of subparagraph (2) of
 paragraph (b) of subdivision (a) of section 6-09 of  title  twenty-eight
 of the rules of the city of New York.

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