IH NYC Laywer

N S T I T U T E
I
C L E
N Y C L A
T AX B ENEFIT AND S UBSIDIZED

H OUSING P ROGRAMS AND
I NCLUSIONARY Z ONING
B ONUSES SUPPLEMENTAL
MATERIALS
Prepared in connection with a Continuing Legal Education course presented
at New York County Lawyers Association, 14 Vesey Street, New York, NY
scheduled for March 1, 2016
Program Co-sponsor: Community Housing Improvement Program (CHIP)
Faculty: Joseph Burden, Belkin Burden Wenig & Goldman, PC; Frank Chaney and
Nicholas Kamillatos, Rosenberg & Estis, PC

This course has been approved in accordance with the requirements of the New York State Continuing Legal Education
Board for a maximum of 2 Transitional and Non-Transitional credit hours: 2 Professional Practice.
This program has been approved by the Board of Continuing Legal education of the Supreme Court of New Jersey for 2
hours of total CLE credits. Of these, 0 qualify as hours of credit for ethics/professionalism, and 0 qualify as hours of credit
toward certification in civil trial law, criminal law, workers compensation law and/or matrimonial law.
ACCREDITED PROVIDER STATUS: NYCLAs CLE Institute is currently certified as an Accredited Provider of
continuing legal education in the States of New York and New Jersey.
The full text of the following documents is available for download from the NYCLA website.
Please visit www.nycla.org
Click CLE on the left-hand side of the home page, another list of links will appear under CLE
Click Course Materials/Publications and select the course you need from the list that
appears.
The link will remain active for one month after the program
http://www.nycla.org/index.cfm?section=CLE&page=Course_Materials---Publications
Index of CLE documents

I
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II
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RPTL 421-a
Title 28 RCNY, Chapter 6 ("421-a")
63-A, 63-B and 63-C of the Rent Reform Act of2015
Private Housing Finance Law: Chapter 44B, Article 2- Limited Profit Housing Companies
Private Housing Finance Law: Chapter 44B, Article 5- Redevelopment Companies
Title 28 RCNY, Chapter 4 (PHFL Companies)
Regulatory Agreement between Gateway I, LLC and New York City Housing Development
Corporation
NYC Administrative Code 11-243
RPTL 489
Title 28 RCNY, Chapter 5 (J-51)
Title 28 RCNY, Chapter 39 ("Benefit Revocation")
IRC 42
23-90 of the Zoning Resolution Inclusionary Housing
IH Regulatory Agreement (sample) with the City of New York through its Department of
Housing Preservation and Development
Title 28 RCNY, Chapter 32 ("421-g")
Outline
Speakers:
I.
II.
III.
Nicholas Kamillatos Member, Rosenberg & Estis, P.C.

Frank Chaney Of Counsel, Rosenberg & Estis, P.C.
Joseph Burden Partner, Belkin Burden Wenig & Goldman, LLP
General Overview
a.
Why are real estate property tax benefits and zoning bonuses relevant to New
York City multi-family property development?
b.
Why are rent affordability and tenant income levels relevant to real estate tax
benefits and zoning bonuses?
c.
What is the interplay between Internal Revenue Code (IRC) 42 and bond
based mortgage financing and zoning bonuses?
d.
What role do N.Y.C. and N.Y.S. rent regulation play as a result of properties
receiving tax benefits and zoning houses?
The RPTL 421-g Tax Benefit Program:

i.
Are apartments eligible for High Rent Deregulation;
ii.
Pending Litigation.
New York City Multi- Family Real Estate Tax Benefits and Rent Regulation
a.
b.
Real Property Tax Law (RPTL) 421-a tax benefits and development
incentives;
i.
The original 421-a incentive program and rent regulation requirements;
ii.
The 2007 amendments to RPTL 421-a and the evolution of the program
to an affordable housing plan;
iii.
The Rent Reform Act of 2015 and post-December 31, 2015 development;
1.
Section 421-a has now lapsed for new projects. Can it be revived?
2.
421-a(17) was enacted and survives. How will that benefit extension
work?
Private Housing Finance Law Article 2 Mitchell-Lama and Article 5

Redevelopment Company rent regulations and urban renewal plans;
i.
PHFL mandated Regulatory Agreements, content and significance;

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RE\88888\0523\610235v2
ii.
IV.
Expiration of rent regulations and affordability requirements for PHFL

Mitchell-Lama and redevelopment companies;
c.
RPTL 489 and New York City Administrative Code 11-243, tax benefits and
rent regulation requirements;
d.
The status of Roberts as applied to properties receiving a 11-243 tax benefits;
e.
The Inclusionary Housing, Zoning Bonus: affordability and rent regulation issues;
f.
Future trends in affordability.
New York City Zoning Resolution 23-90 Inclusionary Housing, and the Proposed
Mandatory Inclusionary Housing (IH) Program
A. INCLUSIONARY HOUSING (IH) PROGRAM
1. Two Program Types:
a. R10
b. Designated Area
2. R10 IH Program
a. Established in 1987.
b. Optional/voluntary.
c. Applicable only in zoning districts allowing residential use at a floor area ratio
(FAR) of 10.0 (R10, C5 and C6-4 through C6-9 Districts).
d. Allows a 20% (2.0 FAR) bonus, from 10.0 to 12.0 FAR, for provision of
affordable housing in accordance with IH Program requirements.
e. Bonus earned for provision of 1 square foot (sq. ft.) of affordable housing
ranged from 2 sq. ft. to 4 sq. ft., depending on whether the affordable housing
was:
i. New construction,
ii. Rehabilitation,
iii. Preservation,
iv. Developed on- or off-site.
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RE\88888\0523\610235v2
f. As originally enacted, IH affordable units could not utilize government

funding/subsidies.
g. Targeted to low income households at or below 80% of Area Median Income
(AMI) threshold promulgated by the U.S. Department of Housing and
Urban Development (HUD).
h. IH Amended in 2009 to allow, inter alia:
i. Affordable housing units under the R10 IH Program to utilize a range of
public funding/subsidies.
ii. Bonus for each 1 sq. ft. of affordable housing provided from 1.25 sq. ft. (if
affordable housing is publicly funded) to 3.5 sq. ft. (for new construction
or substantial rehab).
iii. Created a homeownership option with resale price restricted to households
earning no more than 125% of AMI, adjusted for inflation.
3. Designated Area IH Program
a. Established in 2005.
b. Applicable in high and medium density zoning districts within designated
areas.
c. Allows 1.25 sq. ft. of bonus floor area for each 1 sq. ft. of affordable
housing provided.
d. Allows a bonus of up to a 33% of base FAR.
e. Base FARs within IH Designated Areas are generally lower than base
FARs outside IH Designated Area.
f. Targeted to lower-income households, at or below 80% of HUD's AMI,
or, in certain areas (Hudson Yards, West Chelsea, GreenpointWilliamsburg), households at higher income levels, below either 125% or
175% of AMI.
4. Both Programs
a. Regulations contained in Zoning Resolution (ZR) 23-90 et seq.
b. Affordable units may be provided:
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i. On-site, or
ii. Off-site, within the same Community District or in an adjacent
Community District within mile of benefitted site.
c. Procedural requirements:
i. Affordable Housing Plan must be:
(1)
In accordance with NYC Department of Housing Preservation

and Development (HPD) guidelines Chapter 41 of Title 28 of
the Rules of the City of New York. and
(2)
Approved by HPD.
ii. Regulatory Agreement

(1)
Between owner/developer and HPD.
(2)
Recorded against the compensated development site and

generating site(s), if any.
iii. Permit Notice

(1)
Issued by HPD to DOB giving notice that building permits may

be issued for the compensated development,
(2)
Issued upon execution of the Regulatory Agreement, and
(3)
Must state:
(a) The amount and type of affordable housing on the
generating site(s),
(b) Whether public funding has been utilized, and
(c) The amount of bonus floor area generated that may be
utilized in the compensated development.
iv. Completion Notice/IH Certificates

(1)
Issued by HPD to DOB giving notice that the affordable

dwelling units on the generating site(s) are complete.
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(2)
Issued only upon issuance by DOB of a temporary or permanent

certificate of occupancy (C of O) for the affordable dwelling
units.
(3)
Required for issuance by DOB of C of O for any portion of the

compensated development utilizing bonus floor area generated
by the affordable housing on the generating site(s).
(4)
Issued as IH Certificate of Eligibility for Zoning Bonus

specifying:
(a) Affordable units location,
(b) Date C of O issued for affordable units,
(c) Compensated development location,
(d) Amount of bonus floor area, and
(e) Name and address of bonus transferor and transferee.
(5)
IH Certificates may be re-transferred by transferee pursuant to a

new IH Certificate approved and issued by HPD.
B. MANDATORY INCLUSIONARY HOUSING (MIH) PROGRAM

1.
Affordable housing will be required

optional/voluntary as with IH Program.
2.
MIH designated areas will be separate and distinct from IH designated areas.
3.
Any site or area that is rezoned to facilitate the development of a substantial

amount of new housing, whether by a public or a private application, will be
designated as a MIH area.
4.
MIH Program will not apply in IH designated areas, in which the provision of
affordable housing will continue to be voluntary and generate bonus floor area.
5.
MIH affordable housing must be provided by either new construction or conversion

from non-residential to residential use. Rehabilitation and preservation do not
qualify.
6.
Maximum FARs in MIH designated areas in:
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in
designated
MIH
areas,
not
a.
Contextual zoning districts will be the same as in IH designated areas

(former ZR 23-952 renumbered to 23-154(b).
b.
Non-contextual zoning districts will be as currently allowed by height

factor zoning regulations of ZR 23-142 (renumbered to 23-151).
7. New Terms/Concepts
a.
Affordable Housing Fund - A fund administered by HPD, all contributions

to which shall be used for development, acquisition, rehabilitation, or
preservation of affordable housing, or other affordable housing purposes as
set forth in guidelines to be developed by HPD (the Guidelines). 1 All
contributions will be reserved, for a minimum period of time as set forth in
the Guidelines, for use in the same Community District in which the MIH
development is located, or in an adjacent Community District within mile
of the MIH development. Further provisions for the use of such funds may be
set forth in the Guidelines.
b.
Income Index - 200 percent of the Very Low-Income Limit established by

HUD for Multifamily Tax Subsidy Projects (MTSPs) in accordance with
Internal Revenue Code Sections 42 and 142, as amended by Section 3009(a)
of the Housing and Economic Recovery Act of 2008, as adjusted for
household size.
c.
Income Band - a percentage of the income index that is the maximum

income for a Qualifying Household at initial occupancy of an affordable
housing unit.
d.
Qualifying Household - a low income, moderate income, or middle income

household with an income not exceeding the applicable Income Band.
8. Applicability
a.
1
2
For developments, enlargements 2 or conversions in MIH designated areas

that have more than:
i.
10 housing units or
ii.
12,500 sq. ft. of residential floor area:
As of 2/16/2016, the Guidelines have not yet been developed or presented for public review.
Where a building is enlarged, the floor area subject to MIH includes, in addition to new floor area, any floor area
that is reconstructed or located within a dwelling unit where the layout is changed.
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(1)
Option 1: 25% of the residential floor area for Qualifying

Households with incomes averaging 60% of AMI ($46,620/year
for a family of 3).
The weighted average of all income bands for affordable housing units shall not exceed
60% of the income index, and no income band shall exceed 130% of the income index.
and/or
(2)
Option 2: 30% of the residential floor area for Qualifying

Households with incomes averaging 80% of AMI ($62,150/year
for a family of 3).
and/or
(3)
Option 3 (the Workforce Option): 30% of the residential floor

for Qualifying Households with incomes averaging 120% of AMI
($93,420/year for a family of 3).
Intended for areas where market conditions support new housing without subsidies or
where moderate income housing would contribute to neighborhood housing affordability.
b.
(a)
No direct subsidies may be used, and
(b)
Not available in Manhattan Community Districts 1-8 (below East

96th Street and West 110th Street)
For developments, enlargements or conversions within MIH designated areas

having more than 10 units or 12,500 sq. ft. of residential floor area but
having 25 or fewer housing units and 25,000 sq. ft. or less of residential floor
area:
i.
c.
The affordable housing requirement may be satisfied by making a

contribution to the Affordable Housing Fund that is related to the
cost of constructing an equivalent amount of affordable floor area
as set forth in the Guidelines.
Special Permits. Where a development, enlargement or conversion:

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i.
Is not within a MIH designated area, but
ii.
Is subject to a special permit allowing a significant increase in

residential floor area,
City Planning shall apply such provisions of the MIH Program that are consistent with
the objectives of the [MIH] program as set forth in the [General Provisions] 3.
d.
Modification of MIH Requirements by Board of Standards and Appeals

Permit
i.
ii.
The Board of Standards and Appeals (BSA) may grant a special

permit to:
(1)
Reduce the percentage of affordable floor area required by

the MIH Program,
(2)
Modify the income levels for Qualifying Households, or
(3)
Reduce the required payment to the Affordable Housing

Fund.
To grant such permit, the BSA, must find:

(1)
The MIH Program requirements for affordable housing

create an unnecessary hardship,
(2)
There is no reasonable possibility that strict compliance

with any of the MIH Program options will bring a
reasonable return and the requested reduction or
modification is necessary to realize a reasonable return,
(3)
The unnecessary hardship was not self-created by the

owner or any predecessor in title, and
(4)
The reduction or modification is the minimum necessary to

afford relief.
To promote the creation and preservation of housing for residents with varied incomes in redeveloping
neighborhoods and to enhance neighborhood economic diversity and thus to promote the general welfare. ZR
23-92 (as proposed).
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iii.
HPD will play an important role in the BSAs review of hardship
applications to ensure modifications are granted only in exceptional
circumstances:
(1)
Copy of application to be simultaneously submitted to

HPD,
(2)
HPD may make submission to or appear before the BSA,

and
(3)
Modification or reduction of MIH requirements to be

determined by HPD in consultation with HPD.
e. Transferability of Affordable Housing Floor Area

i.
Not codified in the proposed MIH zoning text or the yet-to-be

developed Guidelines.
ii.
Affordable floor area in excess of that required by the MIH Program

anticipated to be transferable, similar to IH Certificate transfers, to
another development, enlargement or conversion to which the MIH
Program applies, fulfilling in part or in total the requirement for
affordable housing floor area for that development, enlargement or
conversion.
9. Height and Setback Modifications (Zoning for Quality and Affordability)

a. Concurrent zoning text amendment to, inter alia:
i.
Increase maximum street wall heights by up to approx. 90%,
ii.
Increase maximum building heights by up to approx. 25%, and
iii.
Establish a maximum number of stories.
b. Applicable to buildings on zoning lots where:

i.
20% of floor area contains affordable independent residences for

seniors,
ii.
In R10 districts that have achieved an FAR of at least 11.0 through the
provision of affordable housing under the IH Program,
iii.
In IH designated areas where:

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iv.
(1)
50% of floor area is residential, and
(2)
20% or more is affordable pursuant to the MIH Program, and
In MIH designated areas where:

(1)
Residential floor area is newly constructed, enlarged or

converted, and
(2)
The zoning lot is in full compliance with the MIH Program or as

modified by BSA special permit.
- 10 RE\88888\0523\610235v2
Index of CLE documents

Prepared February 2016
NYCCA Lecture Series Tax Benefit and Subsidized Housing Programs, Eligibility
Compliance and Enforcement.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
RPTL 421-a
Title 28 RCNY, Cha ter 6("421-a")
63-A, 63-B and 63-C of the Rent Reform Act of 2015
Private Housing Finance Law: Chapter 44B, Article 2- Limited Profit Housing Com anies
Private Housing Finance Law: Cha ter 44B, Article 5- Redevelo ment Com anies
Title 28 RCNY,Cha ter 4(PHFL Com anies)
Regulatory Agreement between Gateway I, LLC and New York City Housing Development
Cor oration
NYC Administrative Code 11-243
RPTL 489
Title 28 RCNY,Cha ter 5 (J-51)
Title 28 RCNY,Cha ter 39("Benefit Revocation")
IRC 42
23-90 of the Zonin Resolution Inclusionary Housing
IH Regulatory Agreement (sample) with the City of New York through its Department of
Housing Preservation and Develo ment
Title 28 RCNY,Cha ter 32("421-g")
RE\53388\0521\6I8833v1
DOCUMENT 1
RPTL 421-a
Page I oi'S8
Lexis Advance"'
Research
Document:NY CLS RPTL 421-a
Copy Citation
Current through 2015 released chapters 1-5H9

New York Consolidated Laws Service
Exemptions
Real Property Tax Law
Article 4
Title 2 private Property
42i-a. Exemption of new multiple dwellings from local

taxation
1. The following terms, whenever used or referred to in this section, shall have the
following meaning, unless a different meaning clearly appears in the context.
a. "Adjusted Monthly Rent." The rent payable per month as provided in the first
effective lease or occupancy agreement upon initial occupancy of a rental dwelling
unit of a multiple dwelling after construction aided by exemption under this section
less the cost of providing parking facilities and electricity, gas, cooking fuel and other
utilities other than heat and hot water to occupants of such dwelling units.
b. "Floor area." The horizontal areas of the several floors or any portion thereof of a
dwelling or dwellings and accessory structures on a lot measured from the exterior
faces of exterior walls or from the center line of party walls.
c. "Multiple Dwelling." A dwelling which is to be occupied or is occupied as the
residence or home of three or more families living independently of one another,
whether such dwelling is rented or owned as a cooperative or condominium. A new
multiple dwelling shall include new residential construction and the concurrent
conversion, alteration or improvement of apre-existing building or structure provided
that (i) for all tax lots now existing or hereafter created, no more than forty-nine
percent of the floor area (as defined in paragraph b of this subdivision) of the multiple
dwelling consists of the pre-existing building or structure that was converted, altered
or improved, and (ii) for tax lots in the city of New York now existing or hereafter
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created within the following area in the borough of Manhattan, the new residential
construction and/or the concurrent conversion, alteration or improvement of the preexisting building or structure is aided by a grant, loan or subsidy from any federal,
state or local agency or instrumentality: beginning at the intersection of the United
States pierhead line in the Hudson river and the center line of Chambers street
extended, thence easterly to the center line of Chambers street and continuing along
the center line of Chambers street to the center line of Centre street, thence southerly
along the center line of Centre street to the center line of the Brooklyn Bridge to the
intersection of the Brooklyn Bridge and the United States pierhead line in the East
river, thence northerly along the United States pierhead line in the East river and the
center line of one hundred tenth street extended, thence westerly to the center line of
one hundred tenth street and continuing along the center line of one hundred tenth
street to its westerly terminus, thence westerly to the intersection of the center line of
one hundred tenth street extended and the United States pierhead line in the Hudson
river, thence southerly along the United States pierhead line in the Hudson river to
the point of beginning.
d. "Room Count." Two and one-half rooms for each dwelling unit plus one room for
each bedroom plus one room for each additional room separated by either wails or
doors plus one-half room for a balcony, provided that kitchens, bathrooms or
corridors shall not count as such additional rooms.
2.
(a)
(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,
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, and for two years following such period;
(B) followed by two years of exemption from eighty per cent of such
taxation;
(C) followed by two years of exemption from sixty per cent of such taxation;
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(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
During Construction (maximum three years)
Exemption [100%]"
Following completion of work Year:
1
100%
100
80
80
60
60
40
40
20
10
20
'The bracketed matter has been inserted by the Publisher as it was inadvertently
deleted by the Legislature.
(~~)
(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, 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 fifteen years in
the aggregate, as follows:
a. except as otherwise provided herein there shall be full exemption from
sooner, and for eleven years following such period;
b. followed by one year of exemption from eighty percent of such
taxation;
c. followed by one year of exemption from sixty percent of such taxation;
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d. followed by one year of exemption from forty percent of such taxation;

e. followed by one year of exemption from twenty percent of such
taxation.
(B) The benefits of this subparagraph shall not be available in areas made
ineligible for the benefits of this section by a local law enacted pursuant to
paragraph (i) of subdivision two of this section, notwithstanding any
exceptions to ineligibility contained in such local law for certain types of
projects in such areas.
(C) Unless excluded by local law, in the city of New York the benefits of this
subparagraph shall be available in the borough of Manhattan for tax lots now
existing or hereafter created south of or adjacent to either side of one
hundred tenth street only if:
a. the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or
instrumentality, or
b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units be affordable to families of low and
moderate income.
The following table shall illustrate the computation of the exemption:
During Construction (maximum three years) Exemption 100%
Following completion of work Year:
1 through 11
100%
12
80
13
60
14
40
15
20
(iii)
(A) Within a city having a population of one million or more the local housing
agency may adopt rules and regulations providing that 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, 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
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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
hundred ninety-two or is an area receiving funding for a neighborhood
preservation project pursuant to the neighborhood reinvestment corporation
act (42 U.S.C. ~ 180 et seq.) as of June first, nineteen hundred eighty-five,
as follows:
a. except as otherwise provided herein there shall be full exemption from
sooner, and for twenty-one years following such period;
b. followed by one year of exemption from eighty percent of such
taxation;
c. followed by one year of exemption from sixty percent of such taxation;
d. followed by one year of exemption from forty percent of such taxation;
e. followed by one year of exemption from twenty percent of such
taxation.
(B) The benefits of this subparagraph shall not be available in areas made
ineligible for the benefits of this section by a local law enacted pursuant to
paragraph (i) of subdivision two of this section, notwithstanding any
projects.
(C) Notwithstanding the provisions of item (A) or (D) of this subparagraph,
in the city of New York the benefits of this subparagraph shall not be available
in the borough of Manhattan for tax lots now existing or hereafter created
south of or adjacent to either side of one hundred tenth street.
(D) In addition to being available in the areas described in item (A) of this
subparagraph, the benefits made available pursuant to this subparagraph
shall be available where:
instrumentality, or
that twenty percent of the units be affordable to families of low and
moderate income.
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During Construction (maximum three years) Exemption 100%
Following completion of work Year
1 through 21
100/a
22
80
23
60
24
40
25
20
(E) Anew multiple dwelling that is situated in (1) a neighborhood

preservation program area as determined by the department of housing
preservation and development as of June first, nineteen hundred eighty-five,
(2) a neighborhood preservation area as determined by the New York city
planning commission as of June first, nineteen hundred eighty-five, (3) an
area that was eligible for mortgage insurance provided by the rehabilitation
mortgage insurance corporation as of May first, nineteen hundred ninety-two,
or (4) an area receiving funding for a neighborhood preservation project
pursuant to the neighborhood reinvestment corporation act (42 U.S.C. ~
8101 et seq.) as of June first, nineteen hundred eighty-five, shall not be
eligible for the benefits available pursuant to this subparagraph unless it
complies with the provisions of subdivision seven of this section.
(iv)
(A) Unless excluded by local law, in the city of New York, the benefits of this
subparagraph shall be available in the borough of Manhattan for new multiple
dwellings on tax lots now existing or hereafter created south of or adjacent to
either side of one hundred tenth street that commence construction after July
first, nineteen hundred ninety-two and before June itwenty-third, two
thousand fifteen only if:
instrumentality, or
that twenty percent of the units are affordable to families of low and
moderate income.
(B) Such 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, and shall continue to be
exempt from such taxation in tax years immediately following the taxable
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status dates 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 years in
the aggregate, 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, and for twelve years following such period;
b. followed by two years of exemption from eighty percent of such
taxation;
c. followed by two years of exemption from sixty percent of such
taxation;
d. followed by two years of exemption from forty percent of such
taxation;
e. followed by two years of exemption from twenty percent of such
taxation.
During construction (maximum three years) Exemption 100%
Following completion of work year
1 through 12
100%
13-14
80%
15-16
60%
17-18
40%
19-20
20%
(b) In addition to the taxes payable pursuant to the table above, the owner shall pay
in each tax year in which such full or partial exemption is in effect, real property taxes
and assessments as follows:
(i) real property taxes on the assessed valuation of such land and any
improvements thereon in effect during the tax year preceding the commencement
of such construction without regard to any exemption or abatement from real
property taxation in effect prior to such construction which real property taxes
shall be calculated on the tax rate in effect at the time such taxes are due: and
(ii) all assessments for local improvements.
(c) Such multiple dwellings shall be eligible for exemption from taxation pursuant to
this section only if:
(i) exemption from taxes is not availed of concurrently under any other law and
that on or after July first, nineteen hundred seventy-six no preliminary certificate
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of eligibility or certificate of eligibility issued under this section may be rescinded

by the local housing agency to avail the property of the benefits of tax exemption
or tax abatement for rehabilitation or new construction under the provisions of
any other law, but that prior to 7uly first, nineteen hundred seventy-six the local
housing agency may rescind such certificates to avail the property of the benefits
of tax exemption or tax abatement under the provisions of any other law;
(ii) construction is commenced after January first, nineteen hundred seventy-five
and before June ~ twenty-third, two thousand fifteen provided, however, that such
commencement period shall not apply to multiple dwellings eligible for benefits
under subparagraph (iv) of paragraph (a) of this subdivision;
(iii) in the event that, immediately prior to commencement of new construction,
such land was improved with a residential building or buildings that have since
been substantially demolished, and the new building or buildings contain more
than twenty dwelling units, then such new construction shall contain at least five
dwelling units for each class A dwelling unit in existence immediately prior to the
demolition preceding construction; and
(iv) in the event that a project contains more than 100 dwelling units, at least
15 per cent of the dwelling units contain at least three and one-half rooms and at
least 10 per cent of the dwelling units contain at least four and one-half rooms,
unless a waiver from such requirements is granted by the local housing agency
based on hardship.
(d) As of July first, nineteen hundred seventy-five, if the aggregate floor area of
commercial, community facility and accessory use space exceeds twelve per cent of
the aggregate floor area, as defined herein, of any building granted tax exemption
pursuant to this section on or subsequent to July first, nineteen hundred seventy-one,
tax exemption shall be reduced by an amount equal to the per cent of the aggregate
floor area by which the aggregate floor area of commercial, community facility and
accessory use space exceeds twelve per cent of the aggregate floor area of the
building provided, however, that accessory use space shall not include accessory
parking located not more than twenty-three feet above the curb level and provided,
further, that whenever a building containing two or more separately assessed parcels
of real property has commercial, community facility and accessory use space in
excess of such twelve percent, the tax arising out of the reduction in exemption for
such excess space shall not be apportioned pro rata among all of the separately
assessed parcels in the building but shall be applied first to those separately assessed
parcels which are unrelated to the residential use of the building; and only after such
unrelated parcels are fully taxable shall the remainder of such tax be apportioned pro
rata among the remaining separately assessed parcels and provided further, that no
such exemption for commercial, community facility and accessory use space shall be
applicable prior to July first, nineteen hundred seventy-five. To be eligible for
exemption under this section such construction shall take place on land which, thirtysix months prior to the commencement of such construction, was vacant,
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predominantly vacant, under-utilized, or improved with anon-conforming use,

provided that if such new multiple dwelling displaces or replaces a building or
buildings containing more than twenty-five occupied dwelling units in existence on
December thirty-first, nineteen hundred seventy-four and administered under the
local emergency housing rent control act, the rent stabilization law of nineteen
hundred sixty-nine, or the emergency tenant protection act of nineteen seventy-four,
such new multiple dwelling shall not be eligible in the city of New York unless a
certificate of eviction has been issued for any of the displaced or replaced units
pursuant to the powers granted by the city rent and rehabilitation law, and that the
sale, transfer or utilization of air rights over residential buildings that were not
demolished shall not be construed as a displacement or replacement of the dwelling
units contained within those buildings within the meaning of this subdivision.
(e) Any provision of this section to the contrary notwithstanding, the following
properties shall not be eligible for exemption:
(i) any multiple dwelling located in any geographical area where the exemption
is eliminated by regulations promulgated by the local housing agency, pursuant to
subdivision three of this section, upon a finding by the local housing agency that
the need for the tax incentive in such area has been significantly reduced, or that
an area should be preserved for mainly non-residential purposes in accordance
with local municipal policy; unless construction actually commenced prior to
January first, nineteen hundred eighty-two; provided that the local housing
agency shall not reduce or eliminate such exemption with respect to multiple
dwellings of less than four stories in height, as stories are defined in the multiple
dwelling law, except in areas to be preserved for mainly non-residential purposes
provided further that no regulation regarding such geographical limitation shall
eliminate benefits available pursuant to this section for construction which is
commenced within two years from the effective date of such regulation, except in
areas to be preserved for mainly non-residential purposes;
(ii) any land which is mapped as a public park, provided, however, that this
exclusion from eligibility for exemption shall not apply to any land which has been
mapped as a public park but which, for a period of ten years or more after the
date of such mapping, has not been acquired by the state or the city in which
such land is located and with respect to which land the local department of parks
and recreation has determined that such land is not required for public park
purposes, and that such department has no intention of acquiring such land and
that no funds have been allocated for such purpose;
(iii) any land which has been utilized for ten or more consecutive years prior to
October first, nineteen hundred seventy-one as a'~private park" as hereinafter
defined. A private park is a privately owned zoning lot in a densely developed
area having a minimum size of four thousand square feet, free of all
developments and containing only trees, grass, benches, walkways and passive
recreational facilities including structures incidental thereto which has been used
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and maintained during said period for such passive recreational activity by the
general public without charge with the consent and participation of the owner
thereof; where construction is commenced after December thirty-first, nineteen
hundred seventy-two, eligibility shall be determined on the basis of the condition
of the land on the first day of October, nineteen hundred seventy-one.
(f) Notwithstanding the provisions of any local law for the stabilization of rents in
multiple dwellings or the emergency tenant protection act of nineteen seventy-four,
the rents of a unit shall be fully subject to control under such local law or such act,
unless exempt under such local law or such act from control by reason of the
cooperative or condominium status of the unit, for the entire period during which the
property is receiving tax benefits pursuant to this section for the period any such
applicable law or act is in effect, whichever is shorter. Thereafter, such rents shall
continue to be subject to such control to the same extent and in the same manner as
if this section had never applied thereto, except that such rents shall be decontrolled
if:
(i) with respect to units subject to the provisions of this section on the effective
date of this subparagraph such a unit becomes vacant after the expiration of such
ten year period or applicable law or act; provided, however, that such units may
be decontrolled pursuant to the rent regulation reform act of 1993 and provided
further that the rent shall not be decontrolled for a unit which the commissioner
of housing and community renewal or a court of competent jurisdiction finds
became vacant because the landlord or any person acting on his behalf engaged
in any course of conduct, including but not limited to, interruption or
discontinuance of essential services which interfered with or disturbed or was
intended to interfere with or disturb the comfort, repose, peace or quiet of the
tenant in his use or occupancy of such unit, and, that upon such finding in
addition to being subject to any other penalties or remedies permitted by law, the
landlord of such unit shall be barred from collecting rent for such unit in excess of
that charged to the tenant who vacated such unit until restoration of possession
of such tenant, if the tenant so desires, in which case the rent of such tenant shall
be established as if such tenant had not vacated such unit, or compliance with
such other remedy, including, but not limited to, all remedies provided for by the
emergency tenant protection act of nineteen seventy-four for rent overcharge or
failure to comply with any order of the commissioner of housing and community
renewal, as shall be determined by the commissioner of housing and community
renewal to be appropriate; provided, however, that if a tenant fails to accept any
such offer of restoration of possession, such unit shall return to rent stabilization
at the previously regulated rent; or
(ii) with respect to units which become subject to the provisions of this section
after the effective date of this subparagraph, such tax benefit period as provided
in the opening paragraph of this paragraph or applicable law or act shall have
expired and either each lease and renewal thereof for such unit for the tenant in
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residence at the time of such decontrol has included a notice in at least twelve
point type informing such tenant that the unit shall become subject to such
decontrol upon the expiration of such tax benefit period as provided in the
opening paragraph of this paragraph or applicable law or act and states the
approximate date on which such tax benefit period as provided in the opening
paragraph of this paragraph is scheduled to expire; or such unit becomes vacant
as provided under subparagraph (i) of this paragraph.
(g) For purposes of this section construction shall be deemed "commenced" when
excavation or alteration has begun in good faith on the basis of approved construction
plans.
(h) Anything in this section to the contrary notwithstanding, with regard to a project
consisting of two or more multiple dwellings constructed on a contiguous site and
containing an aggregate of not less than one thousand dwelling units, each of such
multiple dwellings shall be entitled to the exemption set forth herein provided
construction of such project be commenced before January first, nineteen hundred
seventy-eight and completed no later than a date certain fixed by the local housing
agency not to exceed four years from the date of commencement of construction of
such project.
(i) Authority of city to enact local law. Except as otherwise specified in this section, a
city to which this section is applicable may enact a local law to restrict, limit or
condition the eligibility, scope or amount of the benefits under this section in any
manner provided that such local law may not grant benefits beyond those provided in
this section and provided further that in the city of New York such local law shall not
take effect sooner than one year after it is enacted. Notwithstanding the foregoing,
the provisions of any local law shall not alter the effect of subdivisions twelve,
thirteen, fourteen, and fifteen of this section as they apply on the effective date of
such subdivisions, notwithstanding any subsequent amendments to the provisions of
law referred to in such subdivisions.
(j) Voluntary renunciation or termination. Notwithstanding the provisions of any
general, special or local law to the contrary, an owner shall not be entitled to
voluntarily renounce or terminate any tax exemption granted pursuant to this
subdivision unless the local housing agency authorizes such renunciation or
termination in connection with the commencement of a new tax exemption pursuant
to either the private housing finance law or section four hundred twenty-c of this title.
3.
a. Application forms for exemption under this section shall be filed with the assessors
between February first and March fifteenth and, based on the certification of the local
housing agency as herein provided, the assessors shall certify to the collecting officer
the amount of taxes to be abated. If there be in a city of one million population or
more a department of housing preservation and development, the term "housing
agency" shall mean only such department of housing preservation and development.
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No such application shall be accepted by the assessors unless accompanied by a

certificate of the local housing agency certifying the applicant's eligibility pursuant to
subdivisions two and four of this section. No such certification of eligibility shall be
issued by the local housing agency until such agency determines the initial adjusted
monthly rent to be paid by tenants residing in rental dwelling units contained within
the multiple dwelling and the comparative adjusted monthly rent that would have to
be paid by such tenants if no tax exemption were applicable as provided by this
section. The initial adjusted monthly rent will be certified by the local housing agency
as the first rent for the subject dwelling units. A copy of such certification with respect
to such units shall be attached by the applicant to the first effective lease or
occupancy agreement. The initial adjusted monthly rent shall reflect the full tax
exemption benefits as approved by the agency.
b. Notwithstanding the provisions of any general, special or local law to the contrary,
the local housing agency may require by rule that applications be filed electronically.
The agency shall determine the amount of the initial adjusted monthly rent as follows:
(i) The total project cost shall be determined by adding the following items:
(a) Land acquisition cost or purchase price, if purchased within two years prior to
the date on which construction or alteration is commenced; or land acquisition
cost or purchase price or an appraisal prepared by a qualified independent
appraiser, in such form as is acceptable to the agency, if purchased more than
two years prior to such date. Land acquisition cost or purchase price, where used,
shall be certified to by an independent certified public accountant;
(b) Costs incurred in the process of preparing the site for construction, including
but not limited to operating losses, relocation expenses, demolition expenses and
carrying charges, such costs to be certified by an independent certified public
accountant to a date not more than ninety days prior to the filing of an application
for certification of eligibility and the balance of such costs to be estimated;
(c) Construction costs for constructing or rehabilitating the multiple dwelling as
determined by the agency in accordance with subdivision four of this section, plus
such amount, if any, representing unique and special costs as may be allowed by
the agency for a particular multiple dwelling;
(d) An allowance for estimated off-site costs, including but not limited to
architects, engineers and legal fees, interest and taxes during construction,
insurance, title and mortgage fees, as determined by the agency in accordance
with subdivision four of this section, and
(e) such other amounts as are ordinarily and customarily incurred in connection
with the construction or rehabilitation of a multiple dwelling, as determined by the
agency in accordance with subdivision four of this section.
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(ii) The total expenses of the multiple dwelling shall be determined by adding the
following items:
(a) The amount that the agency determines to be the reasonable annual costs
for the continuing maintenance and operation of the multiple dwelling in
accordance with subdivision four of this section;
(b) The amount that the agency determines to be an appropriate annual
provision for vacancies, contingency reserves and management fees in
accordance with subdivision four of this section.
(c) projected real property taxes to be levied on the multiple dwelling and the
land on which it is situated at the time of estimated initial occupancy;
(d) Fourteen (14) per cent of the total project cost, as hereinabove defined,
which amount will include all expenses for debt service; and
(e) Deducting from said total the estimated annual income to be derived from
any commercial, community facility or accessory use space in the building.
(iii) The total expenses shall be divided by the room count to provide the adjusted
monthly rent per room per month.
(iv) The adjusted monthly rent per room per month shall be multiplied by the room
count of each rental dwelling unit to provide the initial adjusted monthly rent for such
dwelling unit. The agency may allow adjustments in the initial adjusted monthly rent
for any particular dwelling units provided that the total of the initial adjusted monthly
rents for all of the rental dwelling units in a multiple dwelling shall not exceed the
total expenses of such multiple dwelling.
The agency shall determine the estimated comparative adjusted monthly rent that would
have to be paid if no tax exemption were applicable as provided by this section by adding
to the adjusted monthly rent for each dwelling unit as hereinabove computed an amount
equal to (a) the difference between the projected real property taxes which would be
levied on the multiple dwelling and the land on which it is situated at the time estimated
initial occupancy if no tax abatement were applicable as provided by this section and the
projected real property taxes hereinabove utilized in connection with the computation of
total expenses; (b) divided by the room count of the building as per this section; and (c)
multiplied by the applicants approved room count of each such dwelling unit.
The local housing agency may promulgate rules and regulations to carry out the
provisions of this section, not inconsistent with the provisions hereof, and may require a
reasonable filing fee in an amount provided by such rules and regulations.
a. After a public hearing the housing agency shall promulgate annually to take effect
as of January first of each year the amounts that it determines to be the reasonable
amounts in such categories and classifications as may be established by the housing
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agency, for such items as are generally applicable to all developments and are
required to be determined pursuant to subdivision three of this section, which
amounts shall be filed with the city clerk and published in a publication of general
circulation in the city or the city record, if any, upon adoption by the housing agency.
b. The local housing agency may require a filing fee not to exceed the greater of (i)
four-tenths of one percent of the total project cost, or (ii) if the building will be owned
as a cooperative or condominium, four-tenths of one percent of the total project cost
or four-tenths of one percent of the total project sell-out price stated in the last
amendment to the offering plan accepted for filing by the attorney general of the
state, at the option of the applicant. Such total project cost or total project sell-out
price shall be determined pursuant to rules promulgated by the local housing agency.
Notwithstanding the foregoing, the local housing agency may promulgate rules
imposing an additional fee if an application, or any part thereof, or submission in
connection therewith, is defective and such defect delays the processing of such
application or causes the local housing agency to expend additional resources in the
processing of such application
c. The local housing agency may rely on certification by an architect or engineer
submitted by an applicant in connection with the filing of an application for benefits
pursuant to this section. A false certification by such architect or engineer shall be
deemed to be professional misconduct pursuant to section sixty-five hundred nine of
the education law. Any licensee found guilty of such misconduct under the procedures
prescribed in section sixty-five hundred ten of the education law shall be subject to
the penalties prescribed in section sixty-five hundred eleven of such law, and shall
thereafter be ineligible to submit a certification pursuant to this section.
5. An applicant for tax exemption under this section whose project contains more than
twenty dwelling units shall notify the local community planning board for the area which is
the subject of the application within ten days of submission of the application to the local
housing agency. The local community planning board shall have aforty-five day period to
file objections to the applicant's eligibility under subdivision two of this section, or to the
applicants failure to comply with the standards adopted by the agency in accordance with
subdivision four of this section. The local community board may within such time in its
own discretion hold a public hearing to determine whether or not any objections as to
eligibility should be filed. In the event the local community board files such objections,
the local housing agency shall make a determination and notify such board within fortyfive days. When an applicant's project contains more than one hundred fifty dwelling units
the local community board may within thirty days of receipt of an applicants notification
request the local housing agency to and the local housing agency shall hold a public
hearing solely on the questions of the applicant's eligibility under subdivision two of this
section or the applicants failure to comply with the standards adopted by the agency
pursuant to subdivision four of this section. The local housing agency shall hold this
hearing and make its determination and notify such board within forty-five days.
6.
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(a) When used in this subdivision unless a different meaning clearly appears from
the context, the following terms shall mean and include:
(i) "Covered project."(A) A new building located within the Greenpoint Wiiliamsburg waterfront exclusion area,(8) two or more buildings which are part
of one contiguous development entirely located within the Greenpoint Wiiliamsburg waterfront exclusion area,(C) two or more buildings which are
located within the Greenpoint -Williamsburg waterfront exclusion area and are
part of a single development parcel specifically identified in section 62-831 of the
local zoning resolution, or (D) where so authorized in writing by the local housing
agency, one or more buildings located within the Greenpoint - Williamsburg
waterfront exclusion area and one or more buildings located outside the
Greenpoint - Williamsburg waterfront exclusion area but within Community
District Number One in the borough of Brooklyn. The cumulative number of
affordable units located outside the Greenpoint - Williamsburg waterfront
exclusion area in all covered projects described in clause (D) of this subparagraph
shall not exceed two hundred. A building located outside the Greenpoint Williamsburg waterfront exclusion area which is part of a covered project
described in clause (D) of this subparagraph shall not contain any affordable units
with respect to which an application pending before a governmental entity on the
effective date of this subdivision or a written agreement in effect on the effective
date of this subdivision provided for the development of such affordable units.
(ii) "Greenpoint -Williamsburg waterfront exclusion area." Any tax lots now
existing or hereafter created which are located entirely within the geographic area
in the borough of Brooklyn bounded and described as follows:
BEGINNING at the intersection of the bulkhead line in the East River and
South Fifth Street extended; thence easterly to South Fifth Street and
continuing along South Fifth Street to the intersection of Kent Avenue; thence
northerly along Kent Avenue to the intersection of South Fourth Street,
thence easterly along South Fourth Street to a point 320 feet from Kent
Avenue; thence northerly to a point on South Third Street 320 feet from Kent
Avenue; thence westerly on South Third Street to the intersection of Kent
Avenue; thence northerly along Kent Avenue to the intersection of Grand
Street; thence westerly along Grand Street to the intersection of River Street;
thence northerly along River Street to the intersection of North Third Street;
thence easterly along North Street to the intersection of Kent Avenue; thence
northerly along Kent Avenue to the intersection of Franklin Street; thence
northerly along Franklin Street to the intersection of Quay Street; thence
westerly along Quay Street to the intersection of West Street; thence
northerly along West Street to the intersection of Eagle Street; thence
easterly along Eagle Street to the intersection of Franklin Street; thence
northerly along Franklin Street to the intersection of Dupont Street; thence
westerly along Dupont Street to the intersection of Commercial Street; thence
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northerly along Commercial Street to the intersection of Manhattan Avenue;

thence northerly along Manhattan Avenue to its northerly terminus; thence
northerly to the intersection of Manhattan Avenue extended and the bulkhead
line in Newtown Creek, thence westerly along the bulkhead line in Newtown
Creek and continuing southerly along the United States pierhead line in the
East River to the place of beginning; included in said area are all piers and
other projections from the bulkhead line into the East River or Newtown
Creek.
(iii) "Commencement date" shall mean, with respect to any building in a covered
project and notwithstanding any local law to the contrary, the date upon which
excavation and construction of initial footings and foundations lawfully begins in
good faith or, for an eligible conversion, the date upon which the actual
construction of the conversion, alteration or improvement of the pre-existing
building or structure lawfully begins in good faith.
(iv) "Completion date" shall mean the date upon which the local department of
buildings issues the first temporary or permanent certificate of occupancy
covering all residential areas of a building in a covered project.
(v) "Covered project agreement" shall mean an agreement executed and
recorded on or before December thirty-first, two thousand fifteen, and not
thereafter amended to include additional real property, by and between the
owners of the real property containing all of the affordable units and the market
units which will constitute a single covered project as defined pursuant to
subparagraph (i) of this paragraph.
(b) No benefits under the provisions of this section shall be conferred on any building
in a covered project located in the Greenpoint -Williamsburg waterfront exclusion
area unless the real property containing such building is identified in a covered project
agreement, and the covered project that includes such building shall provide
affordable housing for persons and families of low and moderate income that meets
one of the following conditions:
(i) not less than twenty percent of the units in the covered project are affordable
to and occupied or available for occupancy by individuals or families whose
incomes at the time of initial occupancy do not exceed eighty percent of the area
median incomes adjusted for family size, and at least one building in such covered
project that contains not less than twenty percent of its dwelling units meeting
this affordable housing requirement has a commencement date on or before
December thirty-first, two thousand fifteen and all of the buildings in such
covered project that receive benefits pursuant to paragraph (f) of this subdivision
have a completion date on or before June fifteenth, two thousand twenty-five; or
(ii) not less than ten percent of the units in the covered project are affordable to
and occupied or available for occupancy by individuals or families whose incomes
at the time of initial occupancy do not exceed eighty percent of the area median
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incomes adjusted for family size and not less than an additional fifteen percent of
the units in the covered project are affordable to and occupied or available for
occupancy by individuals or families whose incomes at the time of initial
occupancy do not exceed one hundred twenty-five percent of the area median
incomes adjusted for family size, and at least one building in such covered project
that contains not less than twenty-five percent of its dwelling units meeting this
affordable housing requirement has a commencement date on or before
December thirty-first, two thousand fifteen and all of the buildings in such
covered project that receive benefits pursuant to paragraph (f) of this subdivision
have a completion date on or before June fifteenth, two thousand twenty-five.
(c) Unless affordable units are developed under a federal, state or city program
having contrary requirements, (i) all affordable units must have a comparable number
of bedrooms as market rate units and a unit mix proportional to the market rate
units, or (ii) at least fifty percent of the affordable units must have two or more
bedrooms and no more than fifty percent of the remaining units can be smaller than
one bedroom.
(d) Unless affordable units are developed under a federal or state program having
contrary requirements, residents of the local community shall have priority for the
purchase or rental of fifty percent of the affordable units.
(e) In order Yo ensure that affordable units created pursuant to this subdivision will
continue to be affordable for the life of the covered project, the local housing agency
shall employ mechanisms, including, but not limited to, regulatory agreements, deed
restrictions, resale restrictions, occupancy requirements, and such other instruments
or requirements as it may deem necessary, and shall establish legal remedies to
enforce such mechanisms.
(f) With respect to any covered project located entirely within the Greenpoint Williamsburg waterfront exclusion area, the period of tax benefits awarded to any
building in such covered project shall be the same as the period of tax benefits
awarded under clause (D) of subparagraph (iii) of paragraph (a) of subdivision two of
this section. With respect to any covered project which includes one or more buildings
located outside the Greenpoint -Williamsburg waterfront exclusion area, the period of
tax benefits awarded to any building in such covered project that is located within the
Greenpoint -Williamsburg waterfront exclusion area shall be the same as the period
of tax benefits awarded under clause (A) of subparagraph (ii) of paragraph (a) of
subdivision two of this section.
7.
(a) For the purposes of this subdivision:
(i) "affordable units" shall mean units which meet the affordability requirements
set forth in paragraph(c) of this subdivision.
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(ii) "geographic exclusion areas" shall mean:

(A) areas described in subdivision eleven of this section,
(B) in the borough of Manhattan tax lots now existing or hereafter created
south of or adjacent to either side of one hundred tenth street, and
(C) areas made ineligible for the benefits of this section:
(1) as set forth in section 11-245 of the administrative code of the city of
New York on the effective date of this subdivision, notwithstanding any
projects in such areas,
(2) as set forth in local law number fifty-eight of the city of New York for
the year two thousand six, notwithstanding any exceptions to ineligibility
contained in such local law for certain types of projects in such areas and
notwithstanding the effective date of such law, and
(3) by local law after the effective date of this subdivision
(b) Notwithstanding any provision of this section or any local law to the contrary, the
benefits of this section shall not be available for new multiple dwellings located in a
geographic exclusion area which commence construction after December twentyeighth, two thousand seven unless they comply with the provisions of this subdivision
for thirty-five years from completion of construction of the building receiving benefits
pursuant to this section.
(c) (i) Not less than twenty percent of the units in the multiple dwelling must, upon
the initial rental or sale of the units and upon all subsequent rentals of the units after
a vacancy, be affordable to and occupied or available for occupancy by individuals or
families whose incomes at the time of initial occupancy do not exceed sixty percent of
the area median incomes adjusted for family size or (ii) if the construction of such
building is carried out with substantial assistance of grants, loans or subsidies from
any federal, state or local agency or instrumentality and such assistance is provided
pursuant to a program far the development of affordable housing, not less than
twenty percent of the units in the multiple dwelling must, either (A) upon the initial
rental of the units and upon all subsequent rentals of the units after a vacancy, be
affordable to and occupied or available for occupancy by individuals or families whose
incomes at the time of initial occupancy do not exceed one hundred twenty percent of
the area median incomes adjusted for family size and, where the multiple dwelling
contains more than twenty-five units, do not exceed an average of ninety percent of
the area median incomes adjusted for family size, or (B) upon the initial sale of the
units, be affordable to and occupied or available for occupancy by individuals or
families whose incomes at the time of initial occupancy do not exceed one hundred
twenty-five percent of the area median incomes adjusted for family size.
(d) Unless preempted by federal requirements:
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(i) all affordable units must have a comparable number of bedrooms as market
rate units and a unit mix proportional to the market rate units, or at least fifty
percent of the affordable units must have two or more bedrooms and no more
than fifty percent of the remaining units can be smaller than one bedroom or in
addition to the requirements of paragraph (c) of this subdivision, the floor area of
afFordable units is no less than twenty percent of the total floor area of all
dwelling units;
(ii) affordable units shall share the same common entrances and common areas
as market rate units, and shall not be isolated to a specific floor or area of a
building. Common entrances shall mean any area regularly used by any resident
for ingress and egress from a multiple dwelling; and
(iii) residents of the community board where the multiple dwelling which
receives the benefits provided in this section is located shall, upon initial
occupancy, have priority for the purchase or rental of fifty percent of the
affordable units.
(e) Notwithstanding any provision of law to the contrary, affordable rental units must
remain as rent stabilized units for thirty-five years from completion of construction
provided that tenants holding a lease and in occupancy at the expiration of the rent
stabilization period shall have the right to remain as rent stabilized tenants for the
duration of their occupancy.
(f) All affordable units must be situated onsite. For the purposes of this section,
"onsite" shall mean that affordable units shall be situated within the building or
buildings for which benefits pursuant to this section are being granted.
(g) The limitations on eligibility for benefits contained in this subdivision shall be in
addition to those contained in this section and in any other law or regulation.
<3!
(a) As used in this subdivision, the following terms shall have the following
meanings:
(i) "Applicant" means an applicant for benefits pursuant to this section, any
successor to such applicant, or any employer of building service employees for
such applicant, including, but not limited to, a property management company or
contractor.
(ii) "Building service employee" means any person who is regularly employed at
a building who performs work in connection with the care or maintenance of such
building. "Building service employee" includes, but is not limited to, watchman,
guard, doorman, building cleaner, porter, handyman, janitor, gardener,
groundskeeper, elevator operator and starter, and window cleaner, but shall not
include persons regularly scheduled to work fewer than eight hours per week in
the building.
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(iii) "Fiscal officer' means the comptroller or other analogous officer in a city
having a population of one million or more.
(b) All building service employees employed by the applicant in a building whose
construction commenced on or after December twenty-eighth, two thousand seven
shall receive the applicable prevailing wage for the duration of benefits pursuant to
this section.
(c) The fiscal officer shall have the power to enforce the provisions of this
subdivision. In enforcing such provisions, the fiscal officer shall have the power:
(i) to investigate or cause an investigation to be made to determine the
prevailing wages for building service employees; in making such investigation, the
fiscal officer may utilize wage and fringe benefit data from various sources,
including, but not limited to, data and determinations of federal, state or other
governmental agencies;
(ii) to institute and conduct inspections at the site of the work or elsewhere;
(iii) to examine the books, documents and records pertaining to the wages paid
to, and the hours of work performed by, building service employees;
(iv) to hold hearings and, in connection therewith, to issue subpoenas,
administer oaths and examine witnesses; the enforcement of a subpoena issued
under this subdivision shall be regulated by the civil practice law and rules;
(v) to make a classification by craft, trade or other generally recognized
occupational category of the building service employees and to determine
whether such work has been performed by the building service employees in such
classification;
(vi) to require the applicant to file with the fiscal officer a record of the wages
actually paid by such applicant to the building service employees and of their
hours of work;
(vii) to delegate any of the foregoing powers to his or her deputy or other
authorized representative; and
(viii) to promulgate rules as he or she shall consider necessary for the proper
execution of the duties, responsibilities and powers conferred upon him or her by
the provisions of this paragraph.
(d) If the fiscal officer finds that the applicant has failed to comply with the
provisions of this subdivision, he or she shall present evidence of such noncompliance
to the local housing agency.
(e) Paragraph (b) of this subdivision shall not be applicable to:
(i) projects containing less than fifty dwelling units; or (ii) buildings where the local
housing agency certifies that at initial occupancy at least fifty percent of the dwelling
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units are affordable to individuals or families with a gross household income at or

below one hundred twenty-five percent of the area median income and that any such
units which are located in rental buildings will be subject to restrictions to insure that
they will remain affordable for the entire period during which they receive benefits
under this section.
(f) The local housing agency shall prescribe appropriate sanctions for failure to
comply with the provisions of this subdivision.
(g) Solely for purposes of paragraph (b) of this subdivision, construction shall be
deemed to have commenced when excavation or alteration has begun in good faith
on the basis of approved construction plans.
(h) The eligibility criteria for benefits contained in this subdivision shall be in addition
to those contained in any other law or regulation.
F~
(a) As used in this subdivision, the following terms shall have the following
meanings:
(i) "Residential tax lot" shall mean a tax lot that contains dwelling units.
(ii) "Non-residential tax lot" shall mean a tax lot that does not contain any
dwelling units.
(iii) "Annual limit" shall mean sixty-five thousand dollars, which amount shall be
increased by three percent, compounded annually, on each taxable status date
following the first anniversary of the effective date of this subdivision.
(iv) "Certificate of occupancy" shall mean the first certificate of occupancy
covering all residential areas of the building on or containing a tax lot.
(v) "UnitcounY'shallmean:
(A) in the case of a residential tax lot that does not contain any commercial,
community facility or accessory use space, the number of dwelling units in
such tax lot, and
(B) in the case of a residential tax lot that contains commercial, community
facility or accessory use space, the number of dwelling units in such tax lot
plus one.
(vi) "Exemption cap" shall mean the unit count multiplied by the annual limit.
(b) The provisions of this subdivision shall apply only to projects that commence
construction on or after December twenty-eighth, two thousand seven.
(c) The portion of the assessed valuation of any residential tax lot exempted from
real property taxation in any year pursuant to this section shall not exceed the
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exemption cap on or after the first taxable status date after the building on or
containing such tax lot receives its certificate of occupancy, unless, it complies with
the requirements of item a or b of clause (D) of subparagraph (iii) of paragraph (a) of
subdivision two of this section or the requirements of item a or b of clause (A) of
subparagraph (iv) of paragraph (a) of subdivision two of this section. The portion of
the assessed valuation of all non-residential tax lots in the building on or containing
such non-residential tax lots exempted from real property taxation in any year
pursuant to this section shall not exceed a cumulative total equal to the annual limit
on or after the first taxable status date after the building on or containing such nonresidentiai tax lots receives its certificate of occupancy. A dwelling unit that is located
in two or more tax lots shall be ineligible to receive any benefits under this section.
Qi~
(a) The local housing agency shall implement procedures to insure that affordable
units created pursuant to this section, or units which are required to be occupied by
persons or families who meet specified income limits pursuant to the provisions of a
local law enacted pursuant to this section, continue to be affordable as required by
the provisions of this section or such local law, and that units made subject to rent
stabilization remain subject thereto as required by the provisions of this section. Such
procedures shall include but shall not be limited to the following:
(i) all rent stabilization registrations required to be filed on or after January first,
two thousand eight shall contain a designation which identifies all units that are
subject to the provisions of this section as "421-a units" and specifically identifies
affordable units created pursuant to this section and units which are required to
be occupied by persons or families who meet specified income limits pursuant to
the provisions of a local law enacted pursuant to this section as "421-a affordable
units" and shall contain an explanation of the requirements that apply to all such
units. The owner of a unit that is subject to the provisions of this section shall, in
addition to complying with the requirements of section 26-517 of the rent
stabilization law, file a copy of the rent registration for each such unit with the
local housing agency;
(ii) the local housing agency with cooperation of the division of housing and
community renewal shall monitor and enforce compliance with the filing
requirements of this section;
(iii) the local housing agency shall create a report which, at a minimum, contains
the following information for every building which receives benefits pursuant to
this section: address, commencement and terminaFion date of the benefits, total
number of residential units, number of "421-a units" and number of "4Z1-a
affordable units", apartment number or other designation of such units and the
rent for each of such units. The local housing agency with the cooperation of the
division of housing and community renewal shall maintain, and update such
report no less than annually, with information secured from annual registrations.
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Such reports shall be available for public inspection in a form that assigns a
unique designation to each unit other than its actual apartment number to
maintain the privacy of such information; and
(iv) the local housing agency shall monitor any change in such information, shall
investigate any such changes which indicate a failure to comply with the
provisions of this section, and shall take appropriate action based on its findings.
(b) Failure to comply with the provisions of this section which require the creation
and maintenance of affordable units pursuant to this section, or units which are
required to be occupied by persons or families who meet specified income limits
pursuant to the provisions of a local law enacted pursuant to this section, at any time
during the duration of the building's tax exemption shall result in revocation of any
benefits under this section for the period of such non-compliance. If an on-going
pattern of non-compliance is found to exist, such benefits may be revoked from their
inception. Notwithstanding the revocation of benefits for a building pursuant to the
provisions of this subdivision, all units in such building shall continue to remain
subject to the provisions of the rent stabilization law for the entire intended period as
if the benefits had not been revoked.
(c) The provisions of this subdivision relating to enforcement of the provisions of this
section shall be in addition to any other provisions contained in this section or any
other law.
(d) The revocation of benefits for noncompliance with this section shall not exempt
any unit from continued compliance with the requirements of this section.
il. Additional geographic exclusion areas:
(a) Any tax lots now existing or hereafter created which are located entirely within
the geographic area in the borough of Brooklyn bounded and described as follows:
(i) In the County of Kings, Beginning at a point where Warwick Street meets
Belmont Avenue, thence westerly along said avenue to Jerome Street, thence
southerly along said street to Sutter Avenue, thence westerly on said avenue to
Barbey Street, thence northerly along said street to Belmont Avenue, thence
westerly on said avenue to New Jersey Avenue, thence southerly on said avenue
to Sutter Avenue, thence westerly on said avenue to Pennsylvania Avenue, thence
northerly on said avenue to Belmont Avenue, thence westerly on said avenue to
Sheffield Avenue, thence southerly on said avenue to Sutter Avenue, thence
westerly on said avenue to Snediker Avenue, thence northerly on said avenue to
William's Place, thence northerly on said place to Fulton Street, thence easterly on
said street to Jamaica Avenue, thence easterly on said avenue to Van Siclen
Avenue, thence southerly on said avenue to Arlington Avenue, thence easterly on
said avenue to Warwick Street, thence southerly on said street to Atlantic
Avenue, thence westerly on said avenue to Jerome Street, thence southerly on
said street to Liberty Avenue, thence easterly on said avenue to Warwick Street,
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thence southerly along said street to its intersection with Belmont Avenue, the
point of beginning.
(ii) In the County of Kings, Beginning at a point where Bushwick Avenue meets
with Stewart Street, thence southwesterly on said street to Broadway, thence
southeasterly on Broadway to Conway Street, thence southwesterly on said street
to Truxton Street, thence westerly on said street to Sackman Street, thence
southerly on said street to Atlantic Avenue, thence westerly on said avenue to
Howard Avenue, thence northerly on said avenue to MacDougai Street, thence
westerly on said street to Fulton Street, thence westerly on said street to Patchen
Avenue, thence northerly on said avenue to Hancock Street, thence easterly on
said street to Saratoga Avenue, thence northerly on said avenue to a point
midway between Hancock Street and Jefferson Avenue, thence easterly along the
line extended to the northern intersection of Broadway and Hancock Street,
thence northerly along Nancock Street to Bushwick Avenue, thence easterly along
said avenue to its intersection with Stewart Street, the point of beginning.
(iii) In the County of Kings, Beginning at a point where Prospect Place meets
Ralph Avenue, thence southerly along said avenue to Sutter Avenue, thence
westerly along said avenue to east 98th Street, thence southeasterly along said
street to Rutland Road, thence southwesterly along said road to East 92nd Street,
thence northwesterly along said street to East New York Avenue, thence southerly
along said avenue to Lefferts Avenue, thence westerly along said avenue to Utica
Avenue, thence northerly along said avenue to Lincoln Place, thence easterly on
said place to Rochester Avenue, thence northerly on said avenue to St. Mark's
Avenue thence easterly on St. Mark's Avenue to Buffalo Avenue, thence southerly
on said avenue to Prospect Place, thence westerly along said place towards
intersection with Ralph Avenue, the point of beginning.
(iv) In the County of Kings, Beginning at a point where Nostrand Avenue meets
Dean Street, thence westerly along said street to Rogers Avenue, thence
southerly along said avenue to Bergen Street, thence westerly along said street to
Bedford Avenue, thence southerly along said avenue to St. Mark's Avenue, thence
easterly along said avenue to Rogers Avenue, thence southerly along said avenue
to Crown Street, thence easterly along said street to Nostrand Avenue, thence
southerly along said avenue to Sterling Street, thence westerly along said street
to Bedford Avenue, thence southerly along said avenue to Lefferts Avenue, thence
westerly along said avenue to Washington Avenue, thence southerly along said
avenue to Flatbush Avenue, thence along said avenue to Parkside Avenue, thence
westerly along said avenue to Ocean Avenue, thence northerly along said avenue
to Flatbush Avenue, thence along said avenue to Plaza Street East, thence along
said street to St. John's Place, thence easterly along said place to Underhill
Avenue, thence northerly along said avenue to Prospect Place, thence westerly
along said place to Carlton Avenue, thence southerly along said avenue to
Flatbush Avenue, thence northerly along said avenue to Park Place, thence
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westerly along said place to 6th Avenue, thence northerly along said avenue to
Bergen Street, thence westerly along said street to 5th Avenue, thence southerly
along said avenue to Warren Street, thence westerly along said street to 4th
Avenue, thence northerly along said avenue to Bergen Street, thence westerly
along said street to 3rd Avenue, thence northerly along said avenue to Dean
Street, thence easterly along said street to 4th Avenue, thence northerly along
said avenue to Atlantic Avenue, thence easterly along said avenue to Flatbush
Avenue, thence northerly along said avenue to Fulton Street, thence westerly
along said street to Hanover Place, thence southerly along said place to Livingston
Street, thence westerly along said street to Bond Street, thence northerly along
said street to Fulton Street, thence westerly along said street to Bridge Street,
thence northerly along said street to Willoughby Street, thence westerly along
said street to Lawrence Street, thence southerly along said street to Fulton
Street, thence westerly along said street to ]ay Street, thence northerly along
said street to Prospect Street, thence easterly along said street to Bridge Street,
thence northerly along said street to York Street, thence easterly along said street
to Navy Street, thence southerly along said street to Ashland Place, thence along
said place to Dekaib Avenue, thence easterly along said avenue to Adelphi Street,
thence southerly along said street to Lafayette Avenue, thence easterly along said
avenue to Clermont Avenue, thence northerly along said avenue to Dekalb
Avenue, thence easterly along said avenue to Clinton Avenue, thence northerly
along said avenue to Willoughby Avenue, thence easterly along said avenue to
Hail Street, thence northerly along said street to Myrtle Avenue, thence easterly
along said avenue to Emerson Place, thence southerly along said place to
southern border of Pratt Institute parking lot, thence westerly along said border to
a line extended southerly from Grand Avenue, thence southerly along said avenue
to Dekalb Avenue, thence easterly along said avenue to Classon Avenue, thence
northerly along said avenue to Willoughby Avenue, thence easterly along said
avenue to Taaffe Place, thence southerly along said place to Dekalb Avenue,
thence easterly along said avenue to Kent Avenue, thence northerly along said
avenue to Willoughby Avenue, thence easterly along said avenue to Franklin
Avenue, thence southerly along said avenue to Lafayette Avenue, thence easterly
along said avenue to Nostrand Avenue, thence southerly along said avenue to its
intersection with Dean Street, the point of beginning.
(v) In the County of Kings, Beginning at a point where Ruby Street
(Kings/Queens county line) meets Pitkin Avenue, thence westerly along said
avenue to North Conduit Boulevard, thence northwesterly along said boulevard to
Autumn Avenue, thence northerly along said avenue to Gienmore Avenue, thence
westerly along said avenue to South Conduit Boulevard, thence easterly along
said boulevard to Hemlock Street, thence southerly along said street to Pitkin
Avenue, thence westerly along said avenue to Crystal Street, thence southerly
along said street to Belmont Avenue, thence westerly along said avenue to Milford
Street, thence southerly along said street to Sutter Avenue, thence westerly along
said avenue to Montauk Avenue, thence northerly along said avenue to Belmont
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Avenue, thence westerly along said avenue to Shepherd Avenue, thence northerly
along said avenue to Pitkin Avenue, thence westerly along said avenue to Essex
Street, thence southerly along said street to Belmont Avenue, thence westerly
along said avenue to Warwick Street, thence northerly along said street to Liberty
Avenue, thence westerly along said avenue to Jerome Street, thence northerly
along said street to Atlantic Avenue, thence easterly along said avenue to
Warwick Street, thence northerly along said street to Arlington Avenue, thence
westerly along said avenue to Van Siclen Avenue, thence northerly along said
avenue to Jamaica Avenue, thence westerly along said avenue to Broadway,
thence westerly along Broadway to Fulton Street, thence westerly along said
street to Sackman Street, thence northerly along said street to Truxton Street,
thence easterly along said street to Conway Street, thence northerly along said
street to Broadway, thence westerly along Broadway to Stewart Street, thence
northerly along said street to Bushwick Avenue, thence westerly along said
avenue to Kosciusko Street, thence westerly along said street to Stuyvesant
Avenue, thence northerly along said avenue to Dekalb Avenue, thence westerly
along said avenue to Marcy Avenue, thence northerly along said avenue to Park
Avenue, thence easterly along said avenue to Broadway, thence southerly along
Broadway to Lewis Avenue, thence southerly along said avenue to Stockton
Street, thence easterly along said street to Broadway, thence southerly along
Broadway to Melrose Street, thence northerly along said street to Stanwix Street,
thence southerly along said street to Jefferson Street, thence westerly along said
street to Bushwick Avenue, thence southerly along said avenue to Dekalb Avenue,
thence northerly along said avenue to Evergreen Avenue, thence easterly along
said avenue to Stockholm Street, thence northerly along said street to Central
Avenue, thence easterly along said avenue to Woodbine Street, thence northerly
along said street to Ridgewood Place, thence westerly along said place to
Palmetto Street, thence northerly along said street to Wyckoff Avenue
(Kings/Queens county line), thence following Kings/Queens county line to Ruby
Street (Kings/Queens county line), thence southerly along said street to its
intersection with Pitkin Avenue, the point of beginning.
(vi) In the County of Kings, Beginning at a point where St. Nichols Avenue
(Kings/Queens county line) meets Gates Avenue (Kings/Queens county line),
thence southerly along said avenue to Wykoff Avenue (Kings/Queens county line),
thence easterly along said avenue to Palmetto Street, thence southerly along said
street to Ridgewood Place, thence easterly along said place to Woodbine Street,
thence southerly along said street to Central Avenue, thence westerly along said
avenue to Stockholm Street, thence southerly along said street to Evergreen
Avenue, thence westerly along said avenue to Dekalb Avenue, thence southerly
along said avenue to Bushwick Avenue, thence westerly along said avenue to
Jefferson Street, thence easterly along said street to Stanwix Street, thence
northerly along said street to Melrose Street, thence westerly along said street to
Broadway, thence along Broadway to Stockton Street, thence along said street to
Lewis Avenue, thence northerly along said avenue to Broadway, thence westerly
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along Broadway to Park Avenue, thence along said avenue to Marcy Avenue,
thence northerly along said avenue to Hopkins Street, thence easterly along said
street to Tompkins Avenue, thence northerly along said avenue to Harrison
Avenue, thence westerly along said Avenue to Middleton Street, thence easterly
along said street to Broadway, thence westerly along Broadway to Boerum Street,
thence easterly along said street to Lorimer Street, thence northerly along said
street to Montrose Avenue, thence westerly along said avenue to Broadway,
thence along said road to I-278, thence northerly along said interstate to South
5th Street, thence westerly along said street to Bedford Avenue, thence southerly
along said avenue to South 6th Street, thence westerly along said street to Berry
Street, thence northerly along said street to North 1st Street, thence easterly
along said street to Driggs Avenue, thence northerly along said avenue to Fiilmore
Place, thence easterly along said place to Roebling Street, thence northerly along
said street to Hope Street, thence easterly along said street to Havemeyer Street,
thence northerly along said street to Metropolitan Avenue, thence easterly along
said avenue to Havemeyer Street, thence northerly along said street to North 6th
Street, thence easterly along said street to Meeker Avenue, thence westerly along
said avenue to Metropolitan Avenue, thence easterly along said avenue to Rodney
Street, thence southerly along said street to Ainslie Street, thence easterly along
said street to Union Avenue, thence northerly along said avenue to Conselyea
Street, thence easterly along said street to Manhattan Avenue, thence southerly
along said street to Metropolitan Avenue, thence easterly along said avenue to
Maspeth Avenue, thence northerly along said avenue to Woodpoint Road, thence
along said road to Conselyea Street, thence westerly along said street to Humbolt
Street, thence northerly along said street to Skillman Avenue, then easterly along
said avenue to Woodpoint Road, thence northerly along said road to Jackson
Street, thence easterly along said street to Kingsiand Avenue, thence northerly
along said avenue to Withers Street, thence westerly along said street to
Woodpoint Road, thence northerly along said road to Kingsland Avenue, thence
along said avenue to Division Place, thence easterly along said place to Debevoise
Avenue, thence northerly along said avenue to Beadel Street, thence westerly
along said street to Kingsland Avenue, thence northerly along said avenue to
I-278, thence easterly along said interstate to Sutton Street, thence northerly
along said street to Driggs Avenue, thence easterly along said avenue to Meeker
Avenue, thence along said avenue to Hausman Street, thence northerly along said
street to Nassau Avenue, thence easterly along said avenue to Vandam Street,
thence southerly along said street to Meeker Avenue, thence easterly along said
avenue to Kings/Queens county line, thence southeasterly along said line to
where St. Nichols Avenue meets Gates Avenue, the point of beginning.
(vii) In the County of Kings, Beginning at a point where Bedford Avenue meets
Bergen Street, thence easterly along said street to New York Avenue, thence
northerly along said avenue to Pacific Street, thence easterly along said street to
Brooklyn Avenue, thence southerly along said avenue to Dean Street, thence
easterly along said street to Kingston Avenue, thence southerly along said avenue
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to Sterling Place, thence easterly along said place to Hampton Place, thence
southerly along said place to St. John's Place, thence westerly along said place to
Kingston Avenue, thence southerly along said avenue to Lincoln Place, thence
easterly along said place to Albany Avenue, thence southerly along said avenue to
Eastern Parkway, thence easterly along said parkway to Schenectady Avenue,
thence southerly along said avenue to Union Street, thence easterly along said
street to Utica Avenue, thence southerly along said avenue to Empire Boulevard,
thence westerly along said boulevard to Nostrand Avenue, thence northerly along
said avenue to Crown Street, thence westerly along said street to Rogers Avenue,
thence northerly along said avenue to St. Mark's Avenue, thence westerly along
said avenue to Bedford Avenue, thence northerly along said avenue to Bergen
Street, the point of beginning.
(viii) In the County of Kings, Beginning at a point where Prospect Place meets
Underhill Avenue, thence southerly along said avenue to St. John's Place, thence
westerly along said place to Plaza Street East, thence southerly along said street
to Plaza Street West, thence westerly along said street to Parade Place, thence
along said place to Prospect Park West, thence southerly along said Part West to
4th Street, thence westerly along said street to 8th Avenue, thence northerly
along said avenue to 2nd Street, thence westerly along said street to 7th Avenue,
thence southerly along said avenue to 4th Street, thence westerly along said
street to 6th Avenue, thence southerly along said avenue to 5th Street, thence
westerly along said street to 5th Avenue, thence southerly along said avenue to
8th Street, thence easterly along said street to 6th Avenue, thence southerly
along said avenue to 9th Street, thence westerly along said street to 5th Avenue,
thence southerly along said avenue to 11th Street, thence easterly along said
street to 6th Avenue, thence southerly along said avenue to 14th Street, thence
easterly along said street to 7th Avenue, thence southerly along said avenue to
17th Street, thence westerly along said street to Calder Place, thence northerly
along said place to Prospect Avenue, thence westerly along said avenue to
Webster Place, thence northerly along said place to 16th Street, thence westerly
along said street to 6th Avenue, thence southerly along said avenue to Prospect
Expressway, thence westerly along said expressway to 5th Avenue, thence
southerly along said avenue to 17th Street, thence westerly along said street to
4th Avenue, thence northerly along said avenue to 16th Street, thence westerly
along said street to Hamilton Avenue, thence along said avenue to 15th Street,
thence easterly along said street to 2nd Avenue, thence northerly along said
avenue to 14th Street, thence westerly along said street to Hamilton Place,
thence northerly along said place to 12th Street, thence westerly along said street
to a line extended from 12th Street to the banks of the Gowanus Canal, thence
southerly along said canal to Hamilton Avenue, thence northerly along said
avenue to Smith Street, thence along said street to West 9th Street, thence
westerly along said street to I-278, thence northerly along said interstate to
Huntington Street, thence westerly along said street to Hamilton Avenue, thence
northerly along said avenue to Luquer Street, thence westerly along said street to
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Columbia Street, thence southerly along said street to Commerce Street, thence
westerly along said street to Richards Street, thence northerly along said street to
Hamilton Avenue, thence westerly along said avenue to Bowne Street, thence
along said street to Van Brunt Street, thence southerly along said street to
Verona Street, thence northerly along said street to Imlay Street, thence
southerly along said street to Pioneer Street, thence westerly along said street to
the East River (Kings/New York county line), thence northerly along said county
line to the western border of the U.S. Navy Yard Basin, thence southerly along
said border to a line extended from the eastern-most end of York Street, thence
westerly along said line extended to York Street, thence westerly along said street
to Bridge Street, thence southerly along said street to Prospect Street, thence
westerly along said street to Jay Street, thence southerly along said street to
Fulton Street, thence easterly along said street to Lawrence Street, thence
northerly along said street to Willoughby Street, thence easterly along said street
to Bridge Street, thence southerly along said street to Fulton Street, thence
easterly along said street to Bond Street, thence southerly along said street to
Livingston Street, thence easterly along said street to Hanover Place, thence
northerly along said place to Fulton Street, thence easterly along said street to
Flatbush Avenue, thence southerly along said avenue to Atlantic Avenue, thence
westerly along said avenue to 4th Avenue, thence southerly along said avenue to
Dean Street, thence westerly along said street to 3rd Avenue, thence southerly
along said avenue to Bergen Street, thence easterly along said street to 4th
Avenue, thence southerly along said avenue to Warren Street, thence easterly
along said street to 5th Avenue, thence northerly along said avenue to Bergen
Street, thence easterly along said street to Gth Avenue, thence southerly along
said avenue to Park Place, thence easterly along said place to Flatbush Avenue,
thence southerly along said avenue to Carlton Avenue, thence northerly along
said avenue to Prospect Place, thence easterly along said place to its intersection
with Underhill Avenue, the point of beginning.
(ix) In the County of Kings, Beginning at a point where 65th Street meets 2nd
Avenue, thence southerly along said avenue to Long Island Rail Road (Bay Ridge
Station), thence westerly along said railroad to Bay Ridge Channel, thence along
said channel to the Upper New York Bay, thence along said bay to
Kings/Hudson/New Jersey county/state line, thence along said county/state line to
Kings/New York county line, thence easterly along said county line to Pioneer
Street, thence southerly along said street to Imlay Street, thence northerly along
said street to Verona Street, thence southerly along said street to Van Brunt
Street, thence northerly along said street to Bowne Street, thence easterly along
said street to Hamilton Avenue, thence along said avenue to Richards Street,
thence southerly along said street to Commerce Street, thence easterly along said
street to Columbia Street, thence northerly along said street to Luquer Street,
thence easterly along said street to Hamilton Avenue, thence southerly along said
avenue to Huntington Street, thence easterly along said street to I-278, thence
southerly along said interstate to West 9th Street, thence along said street to
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Smith Street, thence southerly along said street to Hamilton Avenue, thence
along said avenue to Gowanus Canal, thence northerly along said canal to a line
extended westerly from 1Zth Street, thence easterly along said line extended to
12th Street, thence along said street to Hamilton Place, thence southerly along
said place to 14th Street, thence easterly along said street to 2nd Avenue, thence
southerly along said avenue to 15th Street, thence westerly along said street to
Hamilton Avenue, thence southerly along said avenue to 3rd Avenue, thence
southerly along said avenue to 65th Street, thence northerly along said street to
its intersection with 2nd Avenue, the point of beginning.
(b) Any tax lots now existing or hereafter created which are located entirely within
the geographic area in the borough of Manhattan bounded and described as follows:
(i) In the county of New York, Beginning at a point where extended West 202nd
Street intersects the New York/Bronx county line, thence westerly along said
extension to West 202nd Street, thence along said street to 9th Avenue, thence
southerly along said avenue to west 201st Street, thence westerly along said
street to Academy Street, thence northerly along said street to 10th Avenue,
thence southerly along said avenue to Dyckman Street, thence northerly along
said street to Nagle Avenue, thence westerly along said avenue to Fort George
Hill, thence southerly along said hill to the southwestern border of High Bridge
Park, thence easterly along said border to Fort George Avenue, thence southerly
along said avenue to Audubon Avenue, thence along said avenue to West 190th
Street, thence easterly along said street to Amsterdam Avenue, thence southerly
along said avenue to West 186th Street, thence westerly along said street to
Audubon Avenue, thence southerly along said avenue to West 184th Street,
thence easterly along said street to Amsterdam Avenue, thence southerly along
said avenue to West 183rd Street, thence westerly along said street to Audubon
Avenue, thence southerly along said avenue to West 182nd Street, thence
easterly along said street to Amsterdam Avenue, thence southerly along said
avenue to West 166th Street, thence westerly along said street to St. Nicholas
Avenue, thence southerly along said avenue to West 162nd Street, thence
westerly along said street to Broadway, thence northerly along Broadway to west
165th Street, thence westerly along said street to Fort Washington Avenue,
thence northerly along said avenue to West 168th Street, thence easterly along
said street to Broadway, thence northerly along Broadway to West 172nd Street,
thence westerly along said street to Fort Washington Avenue, thence northerly
along said avenue to West 173rd Street, thence easterly along said street to
Broadway, thence northerly along Broadway to West 174th Street, thence
easterly along said street to Wadsworth Avenue, thence northerly along said
avenue to West 175th Street, thence westerly along said street to Fort
Washington Avenue, thence northerly along said avenue to West 177th Street,
thence easterly along said street to Broadway, thence northerly along Broadway
to Cumming Street, thence along said street to Seaman Avenue, thence easterly
along said avenue Yo Academy Street, thence southerly along said street to
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Cooper Street, thence easterly along said street to West 204th Street, thence
southerly along said street to Broadway, thence easterly along Broadway to West
207th Street, thence southerly along said street to Vermilyea Avenue, thence
easterly along said avenue to Isham Street, thence northerly along said street to
Broadway, thence easterly along Broadway to West 215th Street, thence
northerly along said street to Seaman Avenue, thence westerly along said avenue
to West 207th Street, thence northerly along said street to where it meets a line
extended from Payson Avenue, thence westerly along said line extended to
Payson Avenue, thence along said avenue to Dyckman Street, thence northerly
along said street to Staff Street, thence southerly along said street to Riverside
Drive, thence westerly along said drive to the exit ramp of the Henry Hudson
Parkway Northbound, thence southerly along said ramp to the Henry Hudson
Parkway Northbound, thence northerly along said parkway to the on-ramp of the
Henry Hudson Parkway Southbound, thence southerly along said ramp to the
Henry Hudson Parkway Southbound, thence northerly along said parkway to Exit
17, thence southwesterly on a line extended from said exit to a point where it
meets a line extended from Dyckman Street, thence westerly along said line
extended to the New York state line, thence northerly along said state line to the
New York/Bronx county line, thence easterly along said county line, thence
southerly along said line to its intersection with extended West ZOZnd Street, the
point of beginning.
(ii) In the county of New York, Beginning at a point where West 215th Street
meets Broadway, thence westerly along Broadway to Isham Street, thence
southeasterly along said street to Vermilyea Avenue, thence westerly along said
avenue to West 207th Street, thence northerly along said street to Broadway,
thence westerly along Broadway to West 204th Street, thence northerly along
said street to Cooper Street, thence westerly along said street to Academy Street,
thence northerly along said street to Seaman Avenue, thence westerly along said
avenue to Cumming Street, thence southerly along said street to Broadway,
thence southerly along Broadway to West 177th Street, thence westerly along
said street to Fort Washington Avenue, thence southerly along said avenue to
West 175th Street, thence easterly along said street to Wadsworth Avenue,
thence southerly along said avenue to West 174th Street, thence westerly along
said street to Broadway, thence southerly along Broadway to West 173rd Street,
thence westerly along said street to Fort Washington Avenue, thence southerly
along said avenue to West 172nd Street, thence easterly along said street to
Broadway, thence southerly along Broadway to West 168th Street, thence
westerly along said street to Fort Washington Avenue, thence southerly along said
avenue to West 165th Street, thence easterly along said street to Broadway,
thence southerly along Broadway to West 162nd Street, thence easterly along
said street to St. Nicholas Avenue, thence northerly along said avenue to West
166th Street, thence easterly along said street to Amsterdam Avenue, thence
northerly along said avenue to West 182nd Street, thence westerly along said
street to Audubon Avenue, thence northerly along said avenue to West 183rd
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Street, thence easterly along said street to Amsterdam Avenue, thence northerly
Audubon Avenue, thence northerly along said avenue to West 186th Street,
thence easterly along said street to Amsterdam Avenue, thence northerly along
said avenue to West 190th Street, thence westerly along said street to Audubon
Avenue, thence northerly along said avenue to Fort George Avenue, thence along
said avenue to the southwestern border of High Bridge Park, thence westerly
along said border to Fort George Hill, Yhence northerly along said hill to Na91e
Avenue, thence easterly along said avenue to Dyckman Street, thence southerly
along said street to 10th Avenue, thence northerly along said avenue to Academy
Street, thence southerly along said street to West 201st Street, thence easterly
along said street to 9th Avenue, thence northerly along said avenue to West
202nd Street, thence easterly along said street to a line extending to the New
York/Bronx county line, thence southerly along said county line to the point where
the 145th Street Bridge intersects the New York/Bronx county line, thence
westerly along said bridge to West 145th Street, thence along said street to Lenox
Avenue (Malcolm X Boulevard), thence northerly along said avenue to West 146th
Street, thence westerly along said street to 7th Avenue (Adam Clayton Powell Jr.
Boulevard), thence southerly along said avenue to West 144th Street, thence
westerly along said street to 8th Avenue (Frederick Douglass Boulevard), thence
northerly along said avenue to West 145th Street, thence westerly along said
street to St. Nicholas Avenue, thence northerly along said avenue to West 149th
Street, thence westerly along said street to Convent Avenue, thence southerly
Amsterdam Avenue, thence northerly along said avenue to West 151st Street,
thence westerly along said street to Broadway, thence southerly along Broadway
to West 145th Street, thence westerly along said street to Henry Hudson
Parkway, thence southerly along said parkway to St. Clair Place, thence westerly
along said place to extended St. Clair Place, thence along said extension to the
New York/New Jersey state line, thence northerly along said state line to its
intersection with extended Dyckman Street, thence easterly along said extension
to the shoreline of the Hudson River, thence northeasterly to Exit 17 of the Henry
Hudson Parkway Southbound, thence southerly along said parkway to the onramp
from Riverside Drive, thence northerly along said ramp to the Henry Hudson
Parkway Northbound, thence southerly along said parkway to the exit ramp to
Riverside Drive, thence easterly along said ramp to Riverside Drive, thence along
said drive to Staff Street, thence northerly along said street to Dyckman Street,
thence southerly along said street to Payson Avenue, thence easterly along said
avenue to a point where extended Payson Avenue meets 207th Street, thence
southerly along said sTreet to Seaman Avenue, thence easterly along said avenue
to West 215th Street, thence southerly along said street to its intersection with
Broadway, the point of beginning.
(iii) In the county of New York, Beginning at a point where the 145th Street
Bridge meets the New York/Bronx county line, thence southerly along said county
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line to the CSX Railroad, thence westerly along said railroad to Park Avenue,
thence southerly along said avenue to East 132nd Street, thence westerly along
said street to 5th Avenue, thence southerly along said avenue to West 124th
Street, thence westerly along said street to Mount Morris Park West, thence
southerly along said park to West 121st Street, thence westerly along said street
to Lenox Avenue, thence southerly along said avenue to West 120th Street,
thence easterly along said street to 5th Avenue, thence southerly along said
avenue to East 118th Street, thence easterly along said street to Park Avenue,
thence southerly along said avenue to East 117th Street, thence westerly along
said street to 5th Avenue, thence southerly along said avenue to West 115th
Street, thence westerly along said street to Lenox Avenue, thence northerly along
said avenue to West 116th Street, thence westerly along said street to
Morningside Avenue, thence northerly along said avenue to West 121st Street,
thence easterly along said street to Manhattan Avenue, thence northerly along
said avenue to West 123rd Street, thence westerly along said street to
Morningside Avenue, thence northerly along said avenue to West 124th Street,
thence easterly along said street to Frederick Douglass Boulevard, thence
northerly along said boulevard to West 125th Street, thence westerly along said
street to Morningside Avenue, thence northerly along said avenue to West 126th
Street, thence westerly along said street to Amsterdam Avenue, thence along said
avenue to West 129th Street, thence westerly along said street to Broadway,
thence southerly along Broadway to Tiemann Place, thence westerly along said
place to Riverside Drive, thence northerly along said drive to Riverside Drive
West, thence along said drive to West 125th Street, thence along said street to
Henry Hudson Parkway, thence along said parkway to West 145th Street, thence
easterly along said street to Broadway, thence northerly along Broadway to West
151st Street, thence easterly along said street to Amsterdam Avenue, thence
southerly along said avenue to West 148th Street, thence easterly along said
street to Convent Avenue, thence northerly along said avenue to West 149th
Street, thence easterly along said street to St. Nicholas Avenue, thence southerly
along said avenue to West 145th Street, thence easterly along said street to
Frederick Douglass Boulevard, thence southerly along said boulevard to West
144th Street, thence easterly along said street to Adam Clayton Powell Jr.
Boulevard, thence northerly along said boulevard to West 146th Street, thence
easterly along said street to Lenox Avenue (Malcolm X Boulevard), thence
southerly along said avenue to West 145th Street, thence easterly along said
street to the 145th Street Bridge, thence along said bridge to its intersection with
the New York/Bronx county line, the point of beginning.
(iv) In the county of New York, Beginning at a point where the New York/Queens
county border meets the East River at East 96th Street Extended, thence westerly
along a line connecting to East 96th Street, excluding Mili Rock Park, thence
westerly along East 96th Street to Znd Avenue, thence northerly along said
avenue to East 97th Street, thence westerly along said street to 3rd Avenue,
thence southerly along said avenue to East 95th Street, thence westerly along
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said street to Madison Avenue, thence southerly along said avenue to East 92nd
Street, thence westerly along said street to 5th Avenue, thence northerly along
said avenue to Central Park North, thence westerly along said park to Adam
Clayton Powell lr. Boulevard, thence northerly along said boulevard to West 113th
Street, thence westerly along said street to 8th Avenue, thence northerly along
said avenue to West 116th Street, thence easterly along said street to Lenox
Avenue, thence southerly along said avenue to West 115th Street, thence
easterly along said street to 5th Avenue, thence northerly along said avenue to
East 117th Street, thence easterly along said street to Park Avenue, thence
northerly along said avenue to East 118th Street, thence westerly along said
street to 5th Avenue, thence northerly along said avenue to West 120th Street,
thence westerly along said street to Lenox Avenue, thence northerly along said
avenue to West 121st Street, thence easterly along said street to Mount Morris
Park West, thence northerly along said park to West 124th Street, thence easterly
along said street to 5th Avenue, thence northerly along said avenue to East
132nd Street, thence easterly along said street to Park Avenue, thence westerly
along said avenue to CSX Railroad, thence easterly along said railroad over the
Harlem River to the New York/Bronx county line, thence southerly along said
county line to the New York/Queens county line, thence southerly along said
county line to East 96th Street Extended, the point of beginning.
(c) Any tax lots now existing or hereafter created which are located entirely within
the geographic area in the borough of The Bronx bounded and described as follows:
(i) In the county of Bronx, Beginning at a point where Rodman Place meets West
Farms Road, thence southerly along said road to East 172nd Street, thence
westerly along said street to Boone Avenue, thence southerly along said avenue
to Jennings Street, thence westerly along said street to Vyse Avenue, thence
southerly along said avenue to Freeman Street, thence westerly along said street
to Intervale Avenue, thence southerly along said avenue to Fox Street, thence
along said street to Home Street, thence westerly along said street to East 169th
Street, thence westerly along said street to Prospect Avenue, thence southerly
along said avenue to East 168th, thence westerly along said street to Washington
Avenue, thence northerly along said avenue to East Tremont Avenue, thence
easterly along said avenue to Crotona Parkway, thence along said parkway to
Cross Bronx Expressway, thence easterly along said expressway to Longfellow
Avenue, thence northerly along said avenue to Rodman Place, thence easterly
along said place to its intersection with West Farms Road, the point of beginning.
(ii) In the county of Bronx, Beginning at a point where Belmont Street meets
Webster Avenue, thence southerly along Webster avenue to Claremont Parkway,
thence easterly along said parkway to Brook Avenue, thence southerly along said
avenue to East 171st Street, thence westerly along said street to Webster
Avenue, thence southerly along said avenue to Park Avenue, thence westerly
along said avenue to East 164th Street, thence westerly along said street to Teller
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Avenue, thence northerly along said avenue to East 165th Street, thence westerly
along said street to Grand Concourse, thence northerly along Grand concourse to
Mount Eden Parkway, thence easterly along said parkway to Clay Avenue, thence
southerly along said avenue to Belmont Street, thence easterly along said street
to Webster Avenue, the point of beginning.
(d) Any tax lots now existing or hereafter created which are located entirely within
the geographic area in the borough of Queens bounded and described as follows:
(i) In the county of Queens, Beginning at a point where 54th Street meets
Broadway, thence southeasterly along Broadway to 64th Street, thence southerly
along said Street to 39th Avenue, thence westerly along said avenue to 54th
Street, thence northerly along said street to its intersection with Broadway, the
point of beginning.
(ii) In the County of Queens, Beginning at a point where 131st Street meets
Fowler Avenue, thence easterly along Fowler Avenue to College Point Boulevard,
thence northerly on said Boulevard to Interstate 678, thence southerly along said
Interstate to its intersection with Fowler Avenue, the point of beginning.
(iii) In the County of Queens, Beginning at a point where 94 Street meets 52nd
Avenue, thence westerly along said avenue to 92nd Street, thence northerly along
said street to 50th Avenue, thence westerly along said avenue to 91st Street,
thence northerly along said street to 48th Avenue, thence westerly along said
avenue to 90th Street, thence northerly along said street to Corona Avenue,
thence westerly along said avenue to 88th Street, thence northerly along said
street to Long Island Rail Road, thence westerly along said railroad to Broadway,
thence northerly along Broadway to Whitney Avenue, thence easterly along said
avenue to Ketcham Place, thence westerly along said place to Elmhurst Avenue,
thence northerly along said avenue to Judge Street, thence westerly along said
street to Britton Avenue, thence southerly along said avenue to Broadway, thence
westerly along Broadway to 41st Avenue, thence westerly along said avenue to
75th Street, thence northerly along said street to Broadway, thence westerly
along Broadway to 74th Street, thence southerly along said street to 41st
Avenue, thence westerly along said avenue to 73rd Street, thence southerly along
said street to Woodside Avenue, thence westerly along said avenue to CSX
Railroad, thence northerly along said railroad to 41st Avenue, thence westerly
along said Avenue to 69th Street, thence northerly along said street to Roosevelt
Avenue, thence easterly along said avenue to CSX Railroad, thence along said
railroad to Broadway, thence easterly along Broadway to 69th Street, thence
northerly along said street to 70th Street, thence along said street to 69th Street,
thence along said street to 35th Avenue, thence easterly along said avenue to
73rd Street, thence southerly along said street to 37th Road, thence easterly
along said road to 75th Street, thence northerly along said street to 37th Avenue,
thence westerly along said avenue to 74th Street, thence northerly along said
street to 35th Avenue, thence easterly along said avenue to 81st Street, thence
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northerly along said street to 34th Avenue, thence easterly along said avenue to
82nd Street, thence southerly along said street to 35th Avenue, thence easterly
along said avenue to 84th Street, thence southerly along said street to 37th
Avenue, thence easterly along said avenue to 85th Street, thence southerly along
said street to Roosevelt Avenue, thence easterly along said avenue to 88th
Street, thence northerly along said street to 37th Avenue, thence easterly along
said avenue to 90th Street, thence southerly along said street to Roosevelt
Avenue, thence easterly along said avenue to Elmhurst Avenue, thence northerly
along said avenue to 93rd Street, thence southerly along said street to Roosevelt
Avenue, thence easterly along said avenue to 94th Street, thence southerly along
said street to 43rd Avenue, thence easterly along said avenue to 94th Street,
thence southerly along said street to Alstyne Avenue, thence westerly along said
avenue to Corona Avenue, thence easterly along said avenue to 94th Street,
thence southerly on said street to its intersection with 52nd Avenue, the point of
beginning.
(iv) In the county of queens, Beginning at a point where 26th Avenue meets
14th Street, thence southerly along said street to 34th Avenue, thence westerly
along said avenue to 12th Street, thence southerly along said street to 40th
Avenue, thence westerly along said avenue to 10th Street, thence southerly along
10th Street to 41st Road, to the point where a line extended from 11th Street
meets Queens Plaza South, thence southerly along 11th Street to 43rd Avenue,
thence easterly along said avenue to Jackson Avenue, thence westerly along said
avenue to Purves Street, thence southerly along said street to Thompson Avenue,
thence easterly along said avenue to Skillman Avenue, thence westerly along said
avenue to 49th Avenue, thence westerly along said avenue to 11th Street, thence
southerly along said street to the Queens/Kings county border, thence westerly
along said border to the New York/ Queens county border, thence northerly to
Z6th Avenue, thence easterly along said avenue to the point of beginning.
(e) Any tax lots now existing or hereafter created which are located entirely within
the geographic area in the borough of Staten Island bounded and described as
follows:
In the County of Richmond, Beginning at a point where Clifton Avenue intersects
Edgewater Street, thence northerly along said street to Lynhurst Avenue, thence
westerly along said avenue to Langere Place, thence northerly along said place to
Willow Avenue, thence westerly along said avenue to Staten Island Rapid Transit
Railroad, thence northerly along said railroad to Staten Island Rapid Transit
Railroad east/west, thence westerly along said railroad to Chestnut Avenue,
thence northerly along said avenue to Mosel Avenue, thence southerly along said
avenue to Manton Place, thence westerly along said place to Hanover Avenue,
thence northerly along said avenue to Palma Drive, thence westerly along said
drive to Targee Street, thence northerly along said street to Metcalfe Street,
thence westerly along said street to Van Duzer Street, thence southerly along said
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street to Hillside Avenue, thence westerly along said avenue to Howard Avenue,
thence southerly along said avenue to Highland Avenue, thence northerly along
said avenue to Arlo Road, thence easterly along said road to Howard Avenue,
thence northerly along said avenue to Greta Place, thence westerly along said
place to Duncan Road, thence northerly along said road to Theresa Place, thence
westerly along said place to Victory Boulevard, thence northerly along said
boulevard to Forest Avenue, thence westerly along said avenue to Brighton
Avenue, thence northeasterly along said avenue to Lafayette Avenue, thence
northerly along said avenue to Arnold street, thence westerly along said street to
Ellicott Place, thence northerly along said place to Prospect Avenue, thence
westerly along said avenue to Clinton Avenue, thence northerly along said avenue
to Henderson Avenue, thence westerly along said avenue to Tysen Street, thence
northerly along said street to Richmond Terrace, thence westerly along said
terrace to Jewett Avenue, thence southerly along said avenue to Forest Avenue,
thence westerly along said avenue to Morningstar Road, thence southerly along
said road to Monsey Place, thence westerly along said place to Sanders Street,
thence southerly along said street to Wilcox Street, thence westerly along said
street to Eunice Place, Yhence northerly along said place to Forest Avenue, thence
westerly along said avenue to Heaney Avenue, thence southerly along said
avenue to Wilcox Street, thence westerly along said street to Amity Place, thence
northerly along said place to Wemple Street, thence westerly along said street to
South Avenue, thence northerly along said avenue to Forest Avenue, thence
westerly along said avenue to Goethals Road North, thence along said road to
Western Avenue, thence northerly along said avenue to the Staten Island Rapid
Transit Railroad, thence easterly along said railroad to a line extended south from
Holland Avenue, thence northerly along said line extended to Holland Avenue,
thence along said avenue to Benjamin Place, thence easterly along said place to
Arlington Avenue, thence southerly along said avenue to Arlington Place, thence
easterly along said place to Grandview Avenue, thence southerly along said
avenue to Davidson Street, thence easterly along said street to Andros Avenue,
thence southerly along said avenue to a line extended to the Staten Island Rapid
Transit Railroad, thence easterly along said railroad to Van Name Avenue, thence
northerly along said avenue to Richmond Terrace, thence easterly along said
terrace to Wright Avenue, thence northerly along said avenue to a line extended
to the northern shore of Staten Island, thence easterly along said shoreline to
Bayonne Bridge, thence northerly along said bridge to the New York/New Jersey
state line, thence easterly along said state line to the Kings/Richmond county line,
thence southerly along said county line to a point where it meets a line extended
from Clifton Avenue, thence westerly along said line extended to The point where
Clifton Avenue intersects Edgewater Street, the point of beginning.
12. An agreement with the local housing agency to create or subsTantially rehabilitate
offsite housing units affordable to households of low and moderate income, shall remain
in full force and effect. The housing units developed pursuant to such agreement shall
continue to make a building or buildings located in geographic exclusion areas as defined
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in this subdivision eligible to receive benefits pursuant to this section notwithstanding the
provisions of subdivision seven or nine of this section or any exemption cap provided in
local law provided that the agreement with the local housing agency was entered into
prior to December twenty-eighth, two thousand six and construction of the building
receiving benefits pursuant to this section is commenced on or before Tune thirtieth, two
thousand nine.
13.
(a) As used in this subdivision,"UDC Large Scale Project" shall mean amulti-phase
project that (i) includes the development of at least twenty-five hundred new dwelling
units, (ii) is being implemented pursuant to a General Project Pian adopted by the
New York State Urban Development Corporation and approved by Public Authorities
Control Board or is otherwise set forth in agreements with the New York State Urban
Development Corporation, (iii) includes a development over a single area containing a
number of contiguous city blocks, and (iv) the units in which, in the aggregate for
each successive fifteen hundred units of the project rather than for each multiple
dwelling containing such fifteen hundred units and in the aggregate for the entire
project rather than for each multiple dwelling in the project, meet the requirements of
paragraph (c) of subdivision seven of this section.
(b) Except as otherwise provided in subparagraph (iv) of paragraph (a) of this
subdivision, no portion of a UDC Large Scale Project shall be subject to the
requirements of paragraph (c) of subdivision seven of this section.
(c) With respect to any multiple dwelling in a UDC Large Scale Project that meets the
requirements of paragraph (c) of subdivision seven of this section, the period of tax
benefits awarded to such multiple dwelling shall be the same as the period of tax
benefits awarded under clause (A) of subparagraph (iii) of paragraph (a) of
subdivision two of this section. With respect to any multiple dwelling in a UDC Large
Scale Project that does not meet the requirements of paragraph (c) of subdivision
seven of this section, the period of tax benefits awarded to such multiple dwelling
shall be the same as the period of tax benefits awarded under clause (A) of
subparagraph (ii) of paragraph (a) of subdivision two of this section. The tax benefits
awarded to any multiple dwelling in a UDC Large Scale Project shall commence upon
the commencement of construction of such multiple dwelling, provided, however, that
such multiple dwelling meets all of the requirements for tax benefits pursuant to this
section. For each successive fifteen hundred units of a UDC Large Scale Project, the
local housing agency must certify the completion of any affordable units, as defined in
subparagraph (i) of paragraph (a) of subdivision seven of this section, required to
qualify any multiple dwelling or multiple dwellings comprising such fifteen hundred
units for any tax benefits awarded pursuant to this paragraph. The existence of such
special certification requirement and its financial impact upon all units, including, but
not limited to, revocation of tax benefits awarded pursuant to this paragraph if such
special certification requirement is not met, shall be disclosed as a special risk in any
offering plan for any units in a UDC Large Scale Project.
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(d) With respect to any UDC Large Scale Project located in whole or in part within
community district number eight in the borough of Brooklyn in the city of New York,
notwithstanding the provisions of subparagraph (ii) of paragraph (d) of subdivision
seven of this section, the priority specified in such subparagraph shall be granted to
the residents of community districts two, three, six and eight of such borough.
14. The provisions of subdivisions seven and nine of this section shall not apply to (1)
multiple dwellings which commence construction prior to July first, two thousand eight; or
(2) where commencement of construction is delayed as a result of litigation relating to a
contract for the purchase of real property entered into prior to December twenty-eight,
two thousand six and in which a judgment was entered prior to the effective date of this
subdivision provided that construction commences within a reasonable time after final
resolution of the litigation; or (3) where benefits pursuant to this section are sought for a
building located on a site requiring environmental remediation construction and a
certificate of completion pursuant to section 27-1419 of the environmental conservation
law has been issued prior to July first, two thousand eight, provided that construction is
completed without undue delay; or (4) a project which (i) on or before December thirtyfirst, two thousand six, such project receives special permits pursuant to the New York
city zoning resolution with respect to all buildings to be constructed on the development
site, and (ii) on December thirty-first, two thousand six, a portion of such development
site was owned by the state of New York and contained a New York power authority
temporary generating facility, and (iii) such project commenced construction before the
later of three years from the effective date of local law number fifty-eight of the city of
New Yorkfor the year two thousand six or eighteen months from the removal of all such
temporary generating facilities.
15. Paragraphs two through four of subdivision (a) of section 11-245 of the
administrative code of the city of New York and subdivisions (b-1) and (b-2) of section
11-245 of the administrative code of the city of New York, as added by local law number
fifty-eight of the city of New York for the year two thousand six shall not apply to (1)
multiple dwellings which commence construction prior to July first, two thousand eight; or
(2) where commencement of construction is delayed as a result of litigation relating to a
contract for the purchase of real property entered into prior to December twenty-eighth,
two thousand six and in which a judgment was entered prior to the effective date of this
subdivision provided that construction commences within a reasonable time after final
resolution of the litigation; or (3) where benefits pursuant to this section are sought for a
building located on a site requiring environmental remediation construction and a
certificate of completion pursuant to section 27-1419 of the environmental conservation
law has been issued prior to July first, two thousand eight, provided that construction is
completed without undue delay; or (4) a project which (i) on or before December thirtyfirst, two thousand six, such project receives special permits pursuant to the New York
city zoning resolution with respect to all buildings to be constructed on the development
site, and (ii) on December thirty-first, two thousand six, a portion of such development
site was owned by the state of New York and contained a New York power authority
temporary generating facility, and (iii) such project commenced construction before the
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later of three years from the effective date of local law number fifty-eight of the city of
New York for the year two thousand six or eighteen months from the removal of all such
temporary generating facilities.
16.
(a) Definitions. For the purposes of this subdivision:
(i) "421-a benefits" shall mean exemption from real property taxation pursuant
to this subdivision.
(ii) "Affordability option A" shall mean that, within any eligible site: (A) not less
than ten percent of the dwelling units are affordable housing forty percent units;
(B) not less than an additional ten percent of the dwelling units are affordable
housing sixty percent units; (C) not less than an additional five percent of the
dwelling units are affordable housing one hundred thirty percent units; and (D)
such eligible site is developed without the substantial assistance of grants, loans
or subsidies provided by a federal, state or local governmental agency or
instrumentality pursuant to a program for the development of affordable housing,
except that such eligible site may receive tax exempt bond proceeds and four
percent tax credits.
(iii) "Affordability option 8" shall mean that, within any eligible site, (A) not less
than ten percent of the dwelling units are affordable housing seventy percent
units, and (8) not less than an additional twenty percent of the dwelling units are
affordable housing one hundred thirty percent units.
(iv) "Affordability option C" shall mean that, within any eligible site excluding the
geographic area south of ninety-sixth street in the borough of Manhattan, and all
other geographic areas in the city of New York excluded pursuant to local law,(A)
not less than thirty percent of the dwelling units are affordable housing one
hundred thirty percent units, and (B) such eligible site is developed without the
substantial assistance of grants, loans or subsidies provided by a federal, state or
local governmental agency or instrumentality pursuant to a program for the
development of affordable housing.
(v) "Affordability option D" shall only apply to a homeownership project, of which
one hundred percent of the units shall have an average assessed value not to
exceed sixty-five thousand dollars upon the first assessment following the
completion date and where each owner of any such unit shall agree, in writing, to
maintain such unit as their primary residence for no less than five years from the
acquisition of such unit.
(vi) "Affordability percentage" shall mean a fraction, the numerator of which is
the number of affordable housing units in an eligible site and the denominator of
which is the total number of dwelling units in such eligible site.
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(vii) "Affordable housing forty percent unit" shall mean a dwelling unit that: (A)
is situated within the eligible site for which 421-a benefits are granted; and (B)
upon initial rental and upon each subsequent rental following a vacancy during
the restriction period, is affordable to and restricted to occupancy by individuals
or families whose household income does not exceed forty percent of the area
median income, adjusted for family size, at the time that such household initially
occupies such dwelling unit.
(viii) "Affordable housing sixty percent unit" shall mean a dwelling unit that: (A)
is situated within the eligible site for which 421-a benefits are granted; and (B)
the restriction period, is affordable to and restricted to occupancy by individuals
or families whose household income does not exceed sixty percent of the area
(ix) "Affordable housing seventy percent unit' shall mean a dwelling unit that:
(A) is situated within the eligible site for which 421-a benefits are granted; and
(B) upon initial rental and upon each subsequent rental following a vacancy
during the restriction period, is affordable to and restricted to occupancy by
individuals or families whose household income does not exceed seventy percent
of the area median income, adjusted for family size, at the time that such
household initially occupies such dwelling unit.
(x) "Affordable housing one hundred thirty percent unit" shall mean a dwelling
unit that: (A) is situated within the eligible site for which 421-a benefits are
granted; and (B) upon initial rental and upon each subsequent rental following a
vacancy during the restriction period, is affordable to and restricted to occupancy
by individuals or families whose household income does not exceed one hundred
thirty percent of the area median income, adjusted for family size, at the time
that such household initially occupies such dwelling unit.
(xi) "Affordable housing unit" shall mean, collectively and individually, affordable
housing forty percent units, affordable housing sixty percent units, affordable
housing seventy percent units, and affordable housing one hundred thirty percent
units.
(xii) "Agency" shall mean the department of housing preservation and
development.
(xiii) "Application" shall mean an application for 421-a benefits.
(xiv) "Building service employee" shall mean any person who is regularly
employed at, and performs work in connection with the care or maintenance of,
an eligible site, including, but not limited to, a watchman, guard, doorman,
building cleaner, porter, handyman, janitor, gardener, groundskeeper, elevator
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operator and starter, and window cleaner, but not including persons regularly
scheduled to work fewer than eight hours per week at the eligible site.
(xv) "Commencement date" shall mean, with respect to any eligible multiple
dwelling, the date upon which excavation and construction of initial footings and
foundations lawfully begins in good faith or, for an eligible conversion, the date
upon which the actual construction of the conversion, alteration or improvement
of the pre-existing building or structure lawfully begins in good faith.
(xvi) "Completion date" shall mean the date upon which the local department of
buildings issues the first temporary or permanent certificate of occupancy
covering all residential areas of an eligible multiple dwelling.
(xvii) "Construction period" shall mean, with respect to any eligible multiple
dwelling, a period: (A) beginning on the later of the commencement date of such
eligible multiple dwelling or three years before the completion date of such eligible
multiple dwelling; and (B) ending on the day preceding the completion date of
such eligible multiple dwelling.
(xviii) "Eligible conversion" shall mean the conversion, alteration or
improvement of apre-existing building or structure resulting in a multiple
dwelling in which no more than forty-nine percent of the floor area consists of
such pre-existing building or structure.
(xix) "Eligible multiple dwelling" shall mean a multiple dwelling or
homeownership project containing six or more dwelling units created through new
construction or eligible conversion for which the commencement date is after
December thirty-first, two thousand fifteen and on or before June fifteenth, two
thousand nineteen, and for which the completion date is on or before June
fifteenth, two thousand twenty-three.
(xx) "Eligible site" shall mean either: (A) a tax lot containing an eligible multiple
dwelling; or (B) a zoning lot containing two or more eligible multiple dwellings
that are part of a single application.
(xxi) "Fiscal officer' shall mean the comptroller or other analogous officer in a
city having a population of one million or more.
(xxii) "Floor area" shall mean the horizontal areas of the several floors, or any
portion thereof, of a dwelling or dwellings, and accessory structures on a lot
measured from the exterior faces of exterior wails, or from the center line of party
walls.
(xxiii) "Four percent tax credits" shall mean federal low income housing tax
credits computed in accordance with clause (ii) of subparagraph (B) of paragraph
(1) of subsection (b) of section forty-two of the internal revenue code of nineteen
hundred eighty-six, as amended.
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(xxiv) "Homeownership project" shall mean a multiple dwelling or portion

thereof operated as condominium or cooperative housing, however, it shall not
include a multiple dwelling or portion thereof operated as cooperative or
condominium housing located within the borough of Manhattan, and shall not
include a multiple dwelling that contains more than thirty-five units.
(xxv) "Market uniY'shall mean a dwelling unit in an eligible multiple dwelling
other than an affordable housing unit.
(xxvi) "Multiple dwelling" shall have the meaning set forth in the multiple
dwelling law.
(xxvii) "Non-residential tax IoY' shall mean a tax lot that does not contain any
dwelling units.
(xxviii) "Rent stabilization" shall mean, collectively, the rent stabilization law of
nineteen hundred sixty-nine, the rent stabilization code, and the emergency
tenant protection act of nineteen seventy-four, all as in effect as of the effective
date of the chapter of the laws of two thousand fifteen that added this subdivision
or as amended thereafter, together with any successor statutes or regulations
addressing substantially the same subject matter.
(xxix) "Rental project" shall mean an eligible site in which all dwelling units
included in any application are operated as rental housing.
(xxx) "Residential tax lot" shall mean a tax lot that contains dwelling units.
(xxxi) "Restriction period" shall mean a period commencing on the completion
date and expiring on the thirty-fifth anniversary of the completion date,
notwithstanding any earlier termination or revocation of 421-a benefits.
(xxxii) "Tax exempt bond proceeds" shall mean the proceeds of an exempt
facility bond, as defined in paragraph (7) of subsection (a) of section one hundred
forty-two of the internal revenue code of nineteen hundred eighty-six, as
amended, the interest upon which is exempt from taxation under section one
hundred three of the internal revenue code of nineteen hundred eighty-six, as
amended.
(xxxiii) "Thirty-five year benefit" shall mean: (A) for the construction period, a
one hundred percent exemption from real property taxation, other than
assessments for local improvements; (8) for the first twenty-five years of the
restriction period, a one hundred percent exemption from real property taxation,
other than assessments for local improvements; and (C) for the final ten years of
the restriction period, an exemption from real property taxation, other than
assessments for local improvements, equal to the affordability percentage.
(xxxiv) "Twenty year benefit" shall mean: (A) for the construction period, a one
hundred percent exemption from real property taxation, other than assessments
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for local improvements; (B) for the first fourteen years of the restriction period, a
one hundred percent exemption from real property taxation, other than
assessments for local improvements, provided, however, that no exemption shall
be given for any portion of a units assessed value that exceeds $65,000; and (C)
for the final six years of the restriction period, atwenty-five percent exemption
from real property taxation, other than assessments for local improvements,
provided, however, that no exemption shall be given for any portion of a unit's
assessed value that exceeds $65,000.
(b) Benefit. In cities having a population of one million or more, notwithstanding the
provisions of any other subdivision of this section or of any general, special or local
law to the contrary, new eligible sites, except hotels, that comply with the provisions
of this subdivision shall be exempt from real property taxation, other than
assessments for local improvements, in the amounts and for the periods specified in
this paragraph. A rental project that meets all of the requirements of this subdivision
shall receive athirty-five year benefit and a homeownership project that meets all of
the requirements of this subdivision shall receive a twenty year benefit.
(c) Tax payments. In addition to any other amounts payable pursuant to this
subdivision, the owner of any eligible site receiving 421-a benefits shall pay, in each
tax year in which such 421-a benefits are in effect, real property taxes and
assessments as follows:
(i) with respect to each eligible multiple dwelling constructed on such eligible
site, real property taxes on the assessed valuation of such land and any
improvements thereon in effect during the tax year prior to the commencement
date of such eligible multiple dwelling, without regard to any exemption from or
abatement of real property taxation in effect during such tax year, which real
property taxes shall be calculated using the tax rate in effect at the time such
taxes are due; and
(ii) all assessments for local improvements.
(d) Limitation on benefits for non-residential space. If the aggregate floor area of
commercial, community facility and accessory use space in an eligible site, other than
parking which is located not more than twenty-three feet above the curb level,
exceeds twelve percent of the aggregate floor area in such eligible site, any 4Z1-a
benefits shall be reduced by a percentage equal to such excess. If an eligible site
contains multiple tax lots, the tax arising out of such reduction in 421-a benefits shall
first be apportioned pro rata among any non-residential tax lots. After any such nonresidential tax lots are fully taxable, the remainder of the tax arising out of such
reduction in 421-a benefits, if any, shall be apportioned pro rata among the remaining
residential tax lots.
(e) Calculation of benefit. Based on the certification of the agency certifying the
applicants eligibility for 4Z1-a benefits, the assessors shall certify to the collecting
officer the amount of taxes to be exempted.
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(f) Affordability requirements. During the restriction period, a rental project shall
comply with either affordability option A, affordability option B, or affordability option
C or for purposes of a homeownership project, such project shall comply with
affordability option D. Such election shall be made in the application and shall not
thereafter be changed. The rental project shall also comply with all provisions of this
paragraph during the restriction period and with subparagraph (iii) of this paragraph
both during and after the restriction period to the extent provided in such
subparagraph.
(i) Affordable units shall share the same common entrances and common areas
as market rate units, and shall not be isolated to a specific floor or area of a
building. Common entrances shall mean any area regularly used by any resident
for ingress and egress from a multiple dwelling; and
(ii) Unless preempted by the requirements of a federal, state or local housing
program, either (A) the affordable housing units in an eligible site shall have a
unit mix proportional to the market units, or (B) at least fifty percent of the
affordable housing units in an eligible site shall have two or more bedrooms and
no more than twenty-five percent of the affordable housing units shall have less
than one bedroom.
(iii) Notwithstanding any provision of rent stabilization to the contrary, all
affordable housing units shall be fully subject to rent stabilization during the
restriction period, provided that tenants holding a lease and in occupancy of such
affordable housing units at the expiration of the restriction period shall have the
right to remain as rent stabilized tenants for the duration of their occupancy.
(iv) All rent stabilization registrations required to be filed pursuant to
subparagraph (iii) of this paragraph shall contain a designation that specifically
identifies affordable housing units created pursuant to this subdivision as "421-a
affordable housing units" and shall contain an explanation of the requirements
that apply to all such affordable housing units.
(v) Failure to comply with the provisions of this paragraph that require the
creation, maintenance, rent stabilization compliance and occupancy of affordable
housing units or for purposes of a homeownership project the failure to comply
with affordability option D shall result in revocation of any 421-a benefits for the
period of such non-compliance.
(vi) Nothing in this subdivision shall (A) prohibit the occupancy of an affordable
housing unit by individuals or families whose income at any time is less than the
maximum percentage of the area median income, adjusted for family size,
specified for such affordable housing unit pursuant to this subdivision, or (B)
prohibit the owner of an eligible site from requiring, upon initial rental or upon
any rental following a vacancy, the occupancy of any affordable housing unit by
such lower income individuals or families.
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(vii) Following issuance of a temporary certificate of occupancy and upon each

vacancy thereafter, an affordable housing unit shall promptly be offered for rental
by individuals or families whose income does not exceed the maximum
percentage of the area median income, adjusted for family size, specified for such
affordable housing unit pursuant to this subdivision and who intend to occupy
such affordable housing unit as their primary residence. An affordable housing
unit shall not be (A) rented to a corporation, partnership or other entity, or (B)
held off the market for a period longer than is reasonably necessary to perform
repairs needed to make such affordable housing unit available for occupancy.
(viii) An affordable housing unit shall not be rented on a temporary, transient or
short-term basis. Every lease and renewal thereof for an affordable housing unit
shall be for a term of one or two years, at the option of the tenant.
(ix) An affordable housing unit shall not be converted to cooperative or
condominium ownership.
(x) The agency may establish by rule such requirements as the agency deems
necessary or appropriate for (A) the marketing of affordable housing units, both
upon initial occupancy and upon any vacancy,(B) monitoring compliance with the
provisions of this paragraph and (C) the marketing and monitoring of any
homeownership project that is granted an exemption pursuant to this subdivision.
Such requirements may include, but need not be limited to, retaining a monitor
approved by the agency and paid for by the owner.
(xi) Notwithstanding any provision of this subdivision to the contrary, a market
unit shall be subject to rent stabilization unless, in the absence of 421-a benefits,
the owner would be entitled to remove such market unit from rent stabilization
upon vacancy by reason of the monthly rent exceeding any limit established
thereunder.
(g) Building service employees. (i) For the purposes of this paragraph, "applicant"
shall mean an applicant for 421-a benefits, any successor to such applicant, or any
employer of building service employees for such applicant, including, but not limited
to, a property management company or contractor.
(ii) All building service employees employed by the applicant at the eligible site
shall receive the applicable prevailing wage for the entire restriction period.
(iii) The fiscal officer shall have the power to enforce the provisions of this
paragraph. In enforcing such provisions, the fiscal officer shall have the power:
(A) to investigate or cause an investigation to be made to determine the
prevailing wages for building service employees; in making such investigation,
the fiscal officer may utilize wage and fringe benefit data from various
sources, including, but not limited to, data and determinations of federal,
state or other governmental agencies;
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(B) to institute and conduct inspections at the site of the work or elsewhere;
(C) to examine the books, documents and records pertaining to the wages
paid to, and the hours of work performed by, building service employees;
(D) to hold hearings and, in connection therewith, to issue subpoenas,
administer oaths and examine witnesses; the enforcement of a subpoena
issued under this paragraph shall be regulated by the civil practice law and
rules;
(E) to make a classification by craft, trade or other generally recognized
whether such work has been performed by the building service employees in
such classification;
(F) to require the applicant to file with the fiscal officer a record of the wages
hours of work;
(G) to delegate any of the foregoing powers to his or her deputy or other
(H) to promulgate rules as he or she shall consider necessary for the proper
execution of the duties, responsibilities and powers conferred upon him or her
by the provisions of this subparagraph.
(iv) If the fiscal officer finds that the applicant has failed to comply with the
provisions of this paragraph, he or she shall present evidence of such
noncompliance to the agency.
(v) Subparagraph (ii) of this paragraph shall not be applicable to:
(A) an eligible multiple dwelling containing less than thirty dwelling units; or
(B) an eligible multiple dwelling in which all of the dwelling units are
affordable housing units and not less than fifty percent of such affordable
housing units, upon initial rental and upon each subsequent rental following a
vacancy during the restriction period, are affordable to and restricted to
occupancy by individuals or families whose household income does not exceed
one hundred twenty-five percent of the area median income, adjusted for
family size, at the time that such household initially occupies such dwelling
unit.
(h) Replacement ratio. If the land on which an eligible site is located contained any
dwelling units three years prior to the commencement date of the first eligible
multiple dwelling thereon, then such eligible site shall contain at least one affordable
housing unit for each dwelling unit that existed on such date and was thereafter
demolished, removed or reconfigured.
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(i) Concurrent exemptions or abatements. An eligible multiple dwelling receiving

421-a benefits shall not receive any exemption from or abatement of real property
taxation under any other law.
(j) Voluntary renunciation or termination. Notwithstanding the provisions of any
voluntarily renounce or terminate any 421-a benefits unless the agency authorizes
such renunciation or termination in connection with the commencement of a new tax
exemption pursuant to either the private housing finance law or section four hundred
twenty-c of this title.
(k) Termination or revocation. The agency may terminate or revoke 421-a benefits
for noncompliance with this subdivision. If 421-a benefits are terminated or revoked
for noncompliance with this subdivision, ail of the affordable housing units shall
remain subject to rent stabilization or for a homeownership project such project shall
continue to comply with affordability option D of this subdivision and all other
requirements of this subdivision for the restriction period and any additional period
expressly provided in this subdivision, as if the 421-a benefits had not been
terminated or revoked.
(I) Powers cumulative. The enforcement provisions of this subdivision shall not be
exclusive, and are in addition to any other rights, remedies, or enforcement powers
set forth in any other law or available at law or in equity.
(m) Multiple tax lots. If an eligible site contains multiple tax lots, an application may
be submitted with respect to one or more of such tax lots. The agency shall determine
eligibility for 421-a benefits based upon the tax lots included in such application.
(n) Applications. (i) The application with respect to any eligible multiple dwelling
shall be filed with the agency not later than one year after the completion date of
such eligible multiple dwelling.
(ii) Notwithstanding the provisions of any general, special or local law to the
contrary, the agency may require by rule that applications be filed electronically.
(iii) The agency may rely on certification by an architect or engineer submitted
by an applicant in connection with the filing of an application. A false certification
by such architect or engineer shall be deemed to be professional misconduct
pursuant to section sixty-five hundred nine of the education law. Any licensee
found guilty of such misconduct under the procedures prescribed in section sixtyfive hundred ten of the education law shall be subject to the penalties prescribed
in section sixty-five hundred eleven of the education law, and shall thereafter be
ineligible to submit a certification pursuant to this subdivision.
(o) Filing fee. The agency may require a filing fee of three thousand dollars per
dwelling unit in connection with any application. However, the agency may
promulgate rules imposing a lesser fee for eligible sites containing eligible multiple
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dwellings constructed with the substantial assistance of grants, loans or subsidies

provided by a federal, state or local governmental agency or instrumentality pursuant
to a program for the development of affordable housing.
(p) Rules. The agency may promulgate rules to carry out the provisions of this
subdivision.
(q) Authority of city to enact local law. Except as otherwise specified in this
subdivision, a city to which this subdivision is applicable may enact a local law to
restrict, limit or condition the eligibility for or the scope or amount of 421-a benefits
in any manner, provided that such local law may not grant 421-a benefits beyond
those provided in this subdivision and provided further that such local law shall not
take effect sooner than one year after it is enacted. The provisions of sections 11-245
and i1-245.1 of the administrative code of the city of New York or of any other local
law of the city of New York that were enacted on or before the effective date of the
chapter of the laws of two thousand fifteen which added this paragraph shall not
restrict, limit or condition the eligibility for or the scope or amount of 4Z1-a benefits
pursuant to this subdivision
(r) Election. Notwithstanding anything in this subdivision to the contrary, if a
memorandum of understanding pursuant to subdivision sixteen-a of this section has
been executed and noticed, a rental project or homeownership project with a
commencement date on or before December thirty-first, two thousand fifteen that has
not received benefits pursuant to this section prior to the effective date of the chapter
of the laws of two thousand fifteen Yhat added this subdivision may elect to comply
with this subdivision and receive 421-a benefits pursuant to this subdivision.
The provisions of subdivision sixteen of this section shall take effect only upon the
condition that on or before January fifteenth, two thousand sixteen, a memorandum of
understanding is executed by one, or mare, representative of the largest trade
association of residential real estate developers, either for profit or not-for-profit, in New
York city as well as one, or more, representative of the largest trade labor association
representing building and construction workers, with membership in New York city.
Such memorandum of understanding shall include provisions regarding wages or wage
supplements for construction workers on buildings over fifteen units where such buildings
enjoy the benefits of subdivision sixteen of this section; provided, however that such
memorandum may also address issues including those related to the (i) number of units,
(ii) application of a wage schedule to different size projects and (iii) wage schedules for
various geographic locations in New York city. The terms and conditions of the
memorandum of understanding shall apply to ail projects with more than fifteen units that
receive benefits under this*So in original. ["this" inadvertently included] subdivision
sixteen of**So in original. ["this" inadvertently omitted] section after the memorandum
of understanding is executed.
Notwithstanding the foregoing, if on or before January fifteenth, two thousand sixteen,
the memorandum of understanding has not been fully executed, the provisions of
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subdivision sixteen of this section shall be suspended such that no new applications shall
be accepted under subdivision sixteen of this section. Absent such full execution of such
memorandum and notice to the legislative bill drafting commission, the benefits of
subdivision sixteen of this section shall remain suspended that no new applications shall
be accepted under subdivision sixteen of this section, until such memorandum is
executed.
17.
(a) Definitions. For purposes of this subdivision
(i) "Affordable housing eighty percent units" shall mean dwelling units that: (A)
are situated within the extended affordability property; (B) upon initial rental and
upon each subsequent rental following a vacancy during the extended affordability
period, are each affordable and restricted to occupancy by individuals or families
whose household income does not exceed one hundred percent of the area
occupies such dwelling unit; and (C) upon initial rental and upon each subsequent
rental following a vacancy during the extended affordability period, are
collectively affordable and restricted to occupancy by individuals or families whose
household income does not exceed an average of eighty percent of the area
(ii) "Affordable housing one hundred thirty percent units" shall mean dwelling
units that: (A) are situated within an extended affordability property; and (B)
the extended affordability period, are each affordable and restricted to occupancy
by individuals or families whose household income does not exceed one hundred
thirty percent of the area median income, adjusted for family size, at the time
that such household initially occupies such dwelling unit.
(iii) "Affordable housing unit" shall mean, collectively and individually, affordable
housing eighty percent units and affordable housing one hundred thirty percent
units.
(iv) "Agency" shall mean the department of housing preservation and
development.
(v) "Application" shall mean an application for extended benefits pursuant to this
subdivision.
(vi) "Building service employee" shall mean any person who is regularly
employed at, and performs work in connection with the care or maintenance of,
an extended affordability property, including, but not limited to, a watchman,
guard, doorman, building cleaner, porter, handyman, janitor, gardener,
groundskeeper, elevator operator and starter, and window cleaner, but not
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including persons regularly scheduled to work fewer than eight hours per week in
the extended affordability property.
(vii) "Commencement date" shall mean the later of: (A) the expiration date; or
(e) the restrictive declaration date.
(viii) "Expiration date" shall mean the date upon which benefits granted to a
twenty year benefit property or twenty-five year benefit property pursuant to this
section prior to the effective date of the chapter of the laws of two thousand
fifteen that added this subdivision would expire.
(ix) "Extended affordability period" shall mean, notwithstanding any earlier
termination or revocation of the extended benefit, the period commencing upon
the commencement date and ending: (A)fifteen years thereafter for a twenty
year benefit property; and (B) ten years thereafter for atwenty-five year benefit
property.
(x) "Extended affordability property" shall mean a twenty year benefit property
or a twenty-five year benefit property that complies with the provisions of this
subdivision.
(xi) "Extended affordability requirement" shall mean that, within any extended
affordability property: (A) not less than twenty percent of the dwelling units are
affordable housing eighty percent units; and (B) not less than an additional five
percent of the dwelling units are affordable housing one hundred thirty percent
units.
(xii) "Extended benefit' shall mean, for any extended affordability property, a
fifty percent exemption from real property taxation, other than assessments for
local improvements, for the extended affordability period.
(xiii) "Fiscal officer" shall mean the comptroller or other analogous officer in a
city having a population of one million or more.
(xiv) "Floor area" shall mean the horizontal areas of the several floors, or any
portion thereof, of a dwelling or dwellings, and accessory structures on a lot
measured from the exterior faces of exterior wails, or from the center line of party
walls.
(xv) "Multiple dwelling" shall have the meaning set forth in the multiple dwelling
law.
(xvi) "Residential tax lot" shall mean a tax lot that contains dwelling units.
(xvii) "Restrictive declaration" shall mean a document executed by all parties in
interest to the extended affordability property which provides that, during the
extended affordability period, the extended affordability property shall comply
with the extended affordability requirement.
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(xviii) "Restrictive declaration date" shall mean the date upon which the
restrictive declaration is recorded against the extended affordability property.
(xix) "Twenty year benefit property" shall mean a multiple dwelling that
commenced construction prior to July first, two thousand eight and that was
granted benefits pursuant to this section prior to the effective date of the chapter
of the laws of two thousand fifteen that added this subdivision due to its
compliance with the requirements of item b of clause (A) of subparagraph (iv) of
paragraph (a) of subdivision two of this section.
(xx) "Twenty-five year benefit property" shall mean a multiple dwelling that
commenced construction prior to July first, two thousand eight and that was
granted benefits pursuant to this section prior to the effective date of the chapter
of the laws of two thousand fifteen that added this subdivision due to its
compliance with the requirements of item b of clause (D) of subparagraph (iii) of
paragraph (a) of subdivision two of this section.
(b) Benefit. In cities having a population of one million or more, notwithstanding the
provisions of any other subdivision of this section or of any general, special or local
law to the contrary, an extended affordability property shall be granted an extended
benefit, provided, however, that such extended benefit shall be available only if all
residential tax lots in such extended affordability property operate as rental housing.
(c) Tax payments. In addition to any other amounts payable pursuant to this
subdivision, the owner of an extended affordability property receiving an extended
benefit shall pay, in each tax year in which such extended benefit is in effect, real
property taxes and assessments as follows
(i) real property taxes on the assessed valuation of such land and any
improvements thereon in effect during the tax year preceding the commencement
of the construction of such extended affordability property without regard to any
exemption or abatement from real property taxation in effect prior to such
construction which real property taxes shall be calculated on the tax rate in effect
at the time such taxes are due; and
(ii) all assessments for local improvements
(d) Limitation on benefits for non-residential space. Any extended benefit shall be
reduced 6y the percentage of aggregate floor area of the extended affordability
property occupied by commercial, community facility, parking, and accessory uses as
provided in paragraph (d) of subdivision two of this section.
(e) Calculation of benefit. Based on the certification of the agency certifying the
applicant's eligibility for the extended benefit, the assessors shall certify to the
collecting officer the amount of taxes to be exempted.
(f) Affordability requirement. During the extended affordability period, an extended
affordability property must comply with the extended affordability requirement and
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the restrictive declaration. The extended affordability property shall also comply with
all provisions of this paragraph during the extended affordability period and with
subparagraph (i) of this paragraph both during and after the extended affordability
period to the extent provided in such subparagraph.
(i) Notwithstanding the provisions of any local law for the stabilization of rents or
the emergency tenant protection act of nineteen seventy-four, all affordable
housing units in an extended affordability property shall be fully subject to control
under such local law or such act during the extended affordability period, provided
that tenants holding a lease and in occupancy of such affordable housing units in
an extended affordability property at the expiration of the extended affordability
period shall have the right to remain as rent stabilized tenants for the duration of
their occupancy. Upon any vacancy of an affordable housing unit after the
extended affordability period, such affordable housing unit shall remain fully
subject to rent stabilization unless the owner is entitled to remove such affordable
housing unit from rent stabilization upon such vacancy by reason of the monthly
rent exceeding any limit established thereunder.
(ii) Ali rent stabilization registrations required to be filed pursuant to
subparagraph (i) of this paragraph shall contain a designation that specifically
identifies affordable housing units complying with the extended affordability
requirement as "421-a affordable housing units" and shall contain an explanation
of the requirements that apply to all such affordable housing units.
(iii) Failure to comply with the provisions of this paragraph that require the
maintenance, rent stabilization and occupancy of affordable housing units in an
extended affordability property shall result in revocation of the extended benefit
for the period of such non-compliance.
(iv) Nothing in this subdivision shall: (A) prohibit the occupancy of an affordable
housing unit by individuals or families whose income at any time is less than the
maximum percentage of the area median income, adjusted for family size,
specified for such affordable housing unit pursuant to this subdivision; or (B)
prohibit the owner of an extended affordability property from requiring, upon
initial rental or upon any rental following a vacancy, the occupancy of any
affordable housing unit by such lower income individuals or families.
(v) Upon each vacancy, an affordable housing unit shall promptly be offered for
rental by individuals or families whose income does not exceed the maximum
percentage of the area median income, adjusted for family size, specified for such
affordable housing unit pursuant to this subdivision and who intend to occupy
such affordable housing unit as their primary residence. An affordable housing
unit shall not be: (A) rented to a corporation, partnership or other entity; or (B)
held off the market for a period longer than is reasonably necessary to perform
repairs needed to make such affordable housing unit available for occupancy.
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(vi) An affordable housing unit shall not be rented on a temporary, transient or

short-term basis. Every lease and renewal thereof for an affordable housing unit
shall be for a term of one or two years, at the option of the tenant.
(vii) An affordable housing unit shall not be converted to cooperative or
condominium ownership.
(viii) The agency may establish by rule such requirements as the agency deems
necessary or appropriate for: (A) the marketing of affordable housing units; and
(B) monitoring compliance with the provisions of this paragraph. Such
requirements may include, but need not be limited to, retaining a monitor
approved by the agency and paid for by the owner.
(g) Building service employees. (i) For the purposes of this paragraph, "applicant'
shall mean an applicant for extended benefits, any successor to such applicant, or any
employer of building service employees for such applicant, including, but not limited
to, a property management company or contractor.
(ii) All building service employees employed by the applicant at the extended
affordability property shall receive the applicable prevailing wage for the entire
extended affordability period.
(iii) The fiscal officer shall have the power to enforce the provisions of this
paragraph. In enforcing such provisions, the fiscal officer shall have the power:
(A) to investigate or cause an investigation to be made to determine the
prevailing wages for building service employees; in making such investigation,
the fiscal officer may utilize wage and fringe benefit data from various
sources, including, but not limited to, data and determinations of federal,
state or other governmental agencies;
(B) to institute and conduct inspections at the site of the work or elsewhere;
(C) to examine the books, documents and records pertaining to the wages
paid to, and the hours of work performed by, building service employees;
(D) to hold hearings and, in connection therewith, to issue subpoenas,
administer oaths and examine witnesses; the enforcement of a subpoena
issued under this paragraph shall be regulated by the civil practice law and
rules;
(E) to make a classification by craft, trade or other generally recognized
whether such work has been performed by the building service employees in
such classification;
(F) to require the applicant to file with the fiscal officer a record of the wages
hours of work;
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(G) to delegate any of the foregoing powers to his or her deputy or other
(H) to promulgate rules as he or she shall consider necessary for the proper
execution of the duties, responsibilities and powers conferred upon him or her
by the provisions of this subparagraph.
(iv) If the fiscal officer finds that the applicant has failed to comply with the
provisions of this paragraph, he or she shall present evidence of such
noncompliance to the agency.
(v) Subparagraph (ii) of this paragraph shall not be applicable to:
(A) an extended affordability property containing less than thirty dwelling
units; or
(B) an extended affordability property in which all of the dwelling units are
affordable housing units and not less than fifty percent of such affordable
housing units, upon initial rental and upon each subsequent rental following a
vacancy during the extended affordability period, are affordable to and
restricted to occupancy by individuals or families whose household income
does not exceed one hundred twenty-five percent of the area median income,
adjusted for family size, at the time that such household initially occupies
such dwelling unit.
(h) Concurrent exemptions or abatements. An extended affordability property
receiving an extended benefit shall not receive any exemption from or abatement of
real property taxation under any other law.
(i) Voluntary renunciation or termination. Notwithstanding the provisions of any
voluntarily renounce or terminate an extended benefit unless the agency authorizes
such renunciation or termination in connection with the commencement of a new tax
exemption pursuant to either the private housing finance law or section four hundred
twenty-c of this title.
(j) Termination or revocation. The agency may terminate or revoke the extended
benefit for noncompliance with this subdivision. If the extended benefit is terminated
or revoked for noncompliance with this subdivision, all of the affordable housing units
shall remain subject to the provisions of any local law for the stabilization of rents or
the emergency tenant protection act of nineteen seventy-four and ail other
requirements of this subdivision for the entire extended affordability period and any
additional period expressly provided in this subdivision, as if the extended benefit had
not been terminated or revoked.
(k) Powers cumulative. The enforcement provisions of this subdivision shall not be
exclusive, and are in addition to any other rights, remedies, or enforcement powers
set forth in any other law or available at law or in equity.
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(/) Multiple tax lots. If an extended affordability property contains multiple tax lots,
an application may be submitted with respect to one or more of such tax lots. The
agency shall determine eligibility for an extended benefit based upon the tax lots
included in such application.
(m) Applications. (i) The application with respect to any extended affordability
property shall include a certification that: (A) the restrictive declaration has been
recorded against the extended affordability property; and (B) the extended
affordability property is in compliance with such restrictive declaration and this
subdivision.
(ii) The application with respect to any extended affordability property shall be filed
with the agency on or before the later of: (A) December thirty-first, two thousand
sixteen; or (B) eighteen months after the expiration date.
(iii) Notwithstanding the provisions of any general, special or local law to the
contrary, the agency may require by rule that applications be filed electronically.
(iv) The agency may rely on certification by an architect or engineer submitted by an
applicant in connection with the filing of an application. A false certification by such
architect or engineer shall be deemed to be professional misconduct pursuant to
section sixty-five hundred nine of the education law. Any licensee found guilty of such
misconduct under the procedures prescribed in section sixty-five hundred ten of the
education law shall be subject to the penalties prescribed in section sixty-five hundred
eleven of the education law, and shall thereafter be ineligible to submit a certification
pursuant to this subdivision.
(n) Filing fee. The agency may require a filing fee of three thousand dollars per
dwelling unit in connection with any application.
(o) Rules. The agency may promulgate rules to carry out the provisions of this
subdivision.
(p) Authority of city to enact local law. Except as otherwise specified in this
subdivision, a city to which this subdivision is applicable may enact a local law to
restrict, limit or condition the eligibility for or the scope or amount of extended
benefits in any manner, provided that such local law may not grant extended
benefits beyond those provided in this subdivision and provided further that such
local law shall not take effect sooner than one year after it is enacted. The
provisions of sections 11-Z45 and i1-245.1 of the administrative code of the city
of New York or of any other local law of the city of New York that were enacted on
or before the effective date of the chapter of the laws of two thousand fifteen that
added this paragraph shall not restrict, limit or condition the eligibility for or the
scope or amount of extended benefits pursuant to this subdivision.
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History
Formerly 421, add, L 1971, ch 1207, ~ 1; renumbered 421-a, L 1977, ch 110, 1, eff
May 10, 1977; L 1973, ch 480, 1; L 1975, ch 857, 1, eff Aug 9, 1975; L 1976, ch 703,
1-3, eff July 24, 1976; L 1977, ch 560, 1; L 1978, ch 506, 1; L 1978, ch 655, 111, eff
July 25, 1978; L 1981, ch 995, 1, eff July 31, 1981 (see 1981 note below); L 1983, ch 401,
7, 8, eff )une 30, 1983, and deemed to have been in full force and effect since June i,
1982, and only applicable to conversions, alterations and improvements commenced on or
after September 15, 1983; L 1984, ch 346, 1, 2, eff July 3, 1984 (see 1984 note below); L
1985, ch 288, 1-4, eff June 30, 1985 and deemed effective June 19, 1985 (see 1985 note
below); L 1985, ch 289, 1, eff June 30, 1985 and deemed eff June 19, 1985 (see 1985 note
below); L 1989, ch 502, 1; L 1990, ch 929, i, eff Aug 22, 1990; L 1992, ch 702, 7, eff
]an 27, 1993; L 1992, ch 832, 1, eff Aug 7, 1992,2, 3, eff Aug 7, 1992; L 1993, ch 253,
11, eff July 7, 1993 (see 1993 note below); L 1993, ch 488, 1, eff July 26, 1993 (see 1993
note below),2, eff July 26, 1993 (see 1993 note below); L 1994, ch 715, 1, eff Aug 2, 1994;
L 1995, ch 692, 1, eff Nov 3, 1995 (see 1995 note below); L 1997, ch 534, 1, eff Sept 3,
1997; L 1998, ch 432, 1, 2, eff July 22, 1998; L 2001, ch 427, 1, eff Oct 31, 2001; L
2002, ch 349, 1, 2, eff Aug 6, 2002; L 2003, ch 447, 1, eff Aug 26, 2003; L 2004, ch
744, 3 1, eff Dec 15, 2004; L 2005, ch 110, i, eff )une 21, 2005 (see 2005 note below); L
2007, ch 15, Z, eff Feb 19, 2008, deemed eff on and after Aug 17, 2007; L 2007, ch 618,
1-5, eff Aug 17, 2007 (see 2007 note below); L 2007, ch 619, ~ 1-7, eff Aug 17, 2007
(see 2007 note below); L 2007, ch 620, 1, eff Aug 17, 2007; L 2008, ch S5, i, 3-8, eff
Feb 19, 2008, deemed eff on and after Aug 17, 2007; L 2011, ch 97, 38-42 (Part B), eff
June 24, 2011, deemed eff Dec 28, 2010 (see 2011 note below); L 2013, ch 4, 15-17, eff
Jan 30, 2013, deemed eff on and after Dec 28, 2010; amd, L 2015, ch 19, 7, 8, eff June
18, 2015; amd, L 2015, ch Z0, 63-a, 63-b, 63-c, 63-f, 63-g, 63-h, 63-i, 63-j, 63-k, 63
-I, 63-m (Part A), eff June 26, 2015.
~ Annotations

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Terms: NY CLS Rptl 421-a

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DOCUMENT 2
TITLE 28 RCNY,CHAPTER 6
-2-
Section 6-01: Scope; Construction; Dei9nitions.
Page 1 of4
Published on NYC Rules (http://rules.citvofnewvork.us)

Home > Section 6-Ot: Scope; Construction; Defnitions.
Codified Rules: Closed to Comments

Title 28: Department of Housinq Preservation and Development ~,> > Chapter 6: Tax
Exemption Pursuant To Section 421-a of the Real Property Tax Law and Section 11245 Of The Administrative Code Of The Citv Of New York i,~
(a) Scope of rules. This chapter governs the grant of tax exemption pursuant to 421-a
of the Real Property Tax Law of the State of New York, including the procedure for filing
an application for tax exemption and the issuance of Preliminary and Final Certificates of
Eligibility by the Office of Development of the Department of Housing Preservation and
Development. Upon issuance of the Certificate of Eligibility, the calculation and
implementation of the tax exemption are under the jurisdiction of the Department of
Finance.
(b) Construction. This chapter is to be construed to secure the effectuation of the
purposes of 421-a of the Real Property Tax Law and 11-245 of the Administrative Code
and in accordance with the general principle of law that exemption statutes are to be
strictly construed against the taxpayer applying for the exemption.
(c) Definitions. As used in this chapter, the following terms shall have the following
meanings:
Act. "AcY' shall mean 421-a of the Reai Property Tax Law, as amended.
Adjusted monthly rent. "Adjusted monthly rent' shall mean the rent payable per month
as provided in the first effective lease upon initial occupancy of a rental dwelling unit of a
multiple dwelling after completion of construction assisted by exemption under the Act, not
inclusive of charges for parking or electricity, gas, cooking fuel and other utilities other
than heat and hot water.
Administrative Code."Administrative Code" shall mean the Administrative Code of the
City of New York.
Affordable units. "Affordable units" shall mean units created and rented in accordance
with 6-08 of this chapter.
Aggregate floor area. "Aggregate floor area" shall mean the sum of the gross
horizontal areas of all of the floors of a dwelling or dwellings and accessory structures on
a Iot measured from the exterior faces of exterior walls or from the center line of party
walIs.
Annual schedule of reasonable costs. "Annual schedule of reasonable costs" shall
mean the amounts determined by the Department to be reasonable for the maintenance
and operation of a multiple dwelling in such categories and classifications attached to
these rules as Appendix A.
Certificate of Eviction. "Certificate of Eviction" shall mean a certificate of eviction
granted by the city rent agency pursuant to 26-408 of the Administrative Code.
Commencement of construction. "Commencement of construction" shall mean the
date upon which excavation and the construction of initial footings and foundations
commences in good faith. An architect or professional engineer licensed in the State of
New York shall certify that such construction commenced on such date and that such
construction was thereafter completed without undue delay. Notwithstanding the
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Section 6-Ol: Scope; ConsCruction; Defnitions.
Page 2 of4
foregoing, construction shall not commence prior to issuance by the Department of

Buildings of either (i) a building or alteration permit for the construction of an entirely new
multiple dwelling, the footprint of which consisted entirely of vacant and unimproved land
upon such date, or (ii) an alteration permit for the construction of a new multiple dwelling
above, and on an entirely separate tax lot from, one or more existing structures which are
to be retained, provided that only the floor area attributable to the new multiple dwelling,
and any
eligible commercial, community facility or accessory use space within such new structure
shall be eligible for benefits under the Act. Any such new multiple dwelling shall comply
with all other applicable statutory and regulatory requirements.
Commissioner. "Commissioner" shall mean the Commissioner of the Department of
Housing Preservation and Development, or his or her designee, or the chief executive
officer of any successor agency thereto authorized to administer these rules.
Completion of construction. "Completion of construction" shall mean the date upon
which either a Temporary Certificate of Occupancy is issued for all residential areas in the
multiple dwelling or a Permanent Certificate of Occupancy is issued for the entire building.
Construction. "Construction" shall mean the construction of a new building which is a
Class A multiple dwelling.
Demolished. "Demolished" shall mean the total destruction of a building or structure by
razing or otherwise.
Department. "Department' shall mean the Department of Housing Preservation and
Development of the City of New York or any successor agency or department thereto.
Department of Buildings. "Department of Buildings" shall mean the Department of
Buildings of the City of New York or any successor agency or department thereto.
Eligible debt-financed project. "Eligible debt-financed project' shall mean a project
that may be encumbered by a lien or mortgage, where (A) such project is not obtaining
low income housing tax credits pursuant to 42(b)(1)(A) of the Internal Revenue Code of
1986, as amended (nine percent(9%) reservation),(B) any lien or mortgage encumbering
such project provides that it is expressly subject and subordinate to the Written Agreement
entered into with the Department, and (C) the average household income of the units in
such project does not exceed eighty percent(80%) of median income.
Floor area of commercial, community facilities, and accessory use space. "Floor
area of commercial, community facilities, and accessory use space" shall mean the gross
horizontal areas of all the floors or any portion thereof of a multiple dwelling or dwellings
and accessory structures or spaces on a lot measured from the exterior faces of exterior
walls of commercial or community facilities or accessory uses as such uses are defined in
the Zoning Resolution; (See Article 1, Chapter 2). Notwithstanding the foregoing, parking
areas which are not part of the building such as uncovered outdoor parking areas and
open space beneath a building (including access roads) shall not be considered
accessory use space. Provided that, for properties for which a final certificate of eligibility
is issued on or after November 3, 1995 accessory use space shall not include accessory
parking space located not more than twenty-three feet above the curb
level.
Geographic exclusion area. "Geographic exclusion area" shall mean that area of
Manhattan described in 6-02(c)(10) of this chapter.
Hotel. "Hotel" shall mean (i) any Class B multiple dwelling, as such term is defined in
the Multiple Dwelling Law, (ii) any structure or part thereof containing living or sleeping
accommodations which is used or intended to be used for transient occupancy, (iii) any
apartment hotel or transient hotel as defined in the Zoning Resolution, or (iv) any structure
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Section 6-Ol: Scope; Construction; Definitions.
Page 3 of4
or part thereof which is used to provide short term rentals or owned or leased by an entity
engaged in the business of providing short term rentals. For purposes of this definition, a
lease, sublease, license or any other form of rental agreement for a period of less than six
months shall be deemed to be a short term rental. Notwithstanding the foregoing, a
structure or part thereof owned or leased by anot-for-profit corporation for the purpose of
providing governmentally funded emergency housing shall not be considered a hotel for
purposes of this chapter.
Low and moderate income. "Low and moderate income" shall mean a household
income not exceeding 100 percent of median income. For purposes of this chapter, low
income households shall be deemed to be those at 60 percent or less of median income
and moderate income households shall be those between 60 and 100 percent of median
income, provided, however, that the average household income in any group of affordable
units shall not exceed 80 percent of median income.
Median income. "Median income" shall be calculated in accordance with the
regulations of the United States Department of Housing and Urban Development
governing eligibility for occupancy as a lower income family, by size of family, in the
metropolitan statistical area, which includes the City of New York, for purposes of 8 of
the United States Housing Act of 1937, as amended.
Multiple dwelling or building. "Multiple dwelling" or "building" shall mean a dwelling
which is, or is to be, lawfully occupied as the residence or home of three or more families
living independently of one another, whether individual dwelling units herein are rented or
owned as a cooperative or condominium.
Negotiable Certificate. "Negotiable Certificate" shall mean a document issued by the
Department which certifies that the bearer is entitled to the benefits of the Act for a
specified number of units within the geographic exclusion area, provided that all program
requirements have been met.
Office. "Office" shall mean the Office of Tax Incentive Programs of the New York City
Department of Housing Preservation and Development or any successor thereto.
Prior assessed valuation. "Prior assessed valuation" shall mean the taxable assessed
valuation in effect pursuant to 1805-(3) of the Real Property Tax Law, exclusive of any
exemption, of a tax lot (land and improvements) during the tax year preceding the tax year
of Commencement of Construction.
Program for the development of affordable housing. "Program for the development
of affordable housing" shall mean housing which complies with the requirements of a
grant, loan or subsidy from any federal, state or Iocal agency or instrumentality to provide
no less than twenty percent of its units as units affordable to and occupied by or affordable
to and available for occupancy by individuals or families whose incomes do not exceed a
specified Iimit and which has been approved by the commissioner pursuant to this
chapter.
Public project. "Public project' shall mean a building developed with substantial
governmental assistance or a building developed pursuant to a regulatory agreement with
a Federal, state or local agency or instrumentality requiring the development of affordable
housing.
Residential building. "Residential building" shall mean a structure or part thereof
lawfully occupied in whole or part as the home, residence or sleeping place of one or more
persons.
Room Count."Room Count' shall be calculated in the following manner: Each dwelling
unit with at least one room which either (i) contains no cooking facilities and measures at
least one hundred and fifty (150) square feet, or (ii) contains cooking facilities and
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Section 6-01: Scope; Construction; Defnitions.
Page 4 of4
measures at least two hundred and thirty (230) square feet, shall count as two and onehalf rooms. Every other room in the dwelling unit separated by either walls or doors,
including bedrooms, shall count as an additional room, plus one-half room for a balcony,
provided, however, that kitchens, cooking facilities, bathrooms or corridors shall not count
as an additional room. To be included in the calculation of "room count," a room must
meet the requirements of habitability as provided in Administrative Code 27-746 and
27-751.
Single room occupancy. "Single room occupancy" shall mean occupancy in a multiple
dwelling by one or more persons of a room or rooms either without a lawful kitchen or
kitchenette or without a lawful bathroom or without separate means of egress for
occupants thereof to the public areas of the multiple dwelling.
Substantial governmental assistance. "Substantial governmental assistance" shall
mean grants, loans or subsidies provided to any building or buildings on the same zoning
lot or, if only a portion of such zoning lot is being granted benefits pursuant to the Act, to
any building or buildings on such portion of such zoning lot, by any federal, state or Iocal
agency or instrumentality pursuant to a program for the development of affordable
housing, provided that (1) as determined by the commissioner, each of the buildings on
such zoning lot or portion thereof is part of the same project, (2) each of the buildings on
such zoning lot or portion thereof is part of the same application for benefits pursuant to
the Act, (3) the periods of construction and final real property tax exemption benefits
granted pursuant to the Act for alI of the buildings on such zoning lot or portion thereof
being granted benefits pursuant to the Act shall commence
simultaneously, and (4) no final real property tax exemption benefits shall be granted
pursuant to the Act for any buildings on such zoning Iot or any portion thereof being
granted benefits pursuant to the Act until receipt of a certificate of occupancy or a
temporary certificate of occupancy for the residential portions of the building or buildings
on such zoning lot containing the units affordable to and occupied by or affordable to and
available for occupancy by individuals or families whose incomes do not exceed a
specified amount. Such subsidies may include allocations of low income housing tax
credits and, in the discretion of the Department, below market sales or sales subject to
evaporating purchase money mortgages by a federal, state or local agency or
instrumentality, but shall not include permanent financing provided through the State of
New York Mortgage Agency, purchase money mortgages, or mortgage insurance.
Written Agreement. "Written Agreement" shall mean a document issued by the
Department pursuant to 6-08(I) of the Rules.
Zoning lot. "Zoning lot" shall mean a "zoning lot" as defined in 12-10 of the Zoning
Resolution.
Zoning Resolution. "Zoning Resolution" shall mean the Zoning Resolution of the City
of New York, as amended.
Source URL: http://rules.citvofnewvork.us/contenUsection-6-01-scope-construction-definitions
Links:
[1] http://rules.cityofnewyork.us/codified-rules?agency=HPD
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Section 6-02: Eligibility.
Page 1 of 10
Published on NYC Rules (ham://rules.cityofnewyork.us)

Home > Section 6-02: Eligibility.

Titie 28: Department of Housing Preservation and Development ~,> > Chapter 6: Tax
Exemption Pursuant To Section 421-a of the Real Property Tax Law and Section 11245 Of The Administrative Code Of The Citv Of New York rn
(a) Eligibility. Partial tax exemption will only be granted to multiple dwellings which are
eligible projects and which meet alI the eligibility requirements of this section.
(b) Eligible projects. The tax benefits of the Act are available to:
(1) new multiple dwellings located outside the geographic exclusion area containing not
less than three (3) dwelling units provided construction is commenced before December
31, 2007;
(2) new multiple dwellings located in the geographic exclusion area if the
commencement of construction occurred on or before November 29, 1985 and if such
building is completed no later than December 31, 2000 and only to the extent the building
receives a permanent Certificate of Occupancy indicating that it was built pursuant to
architectural, structural, and mechanical plans approved by the Department of Buildings
on or before November 29, 1985; and
(3) new multiple dwellings located in the geographic exclusion area if the
commencement of construction occurred after November 29, 1985 and before December
28, 2010, only if construction is carried out with substantial governmental assistance or if
affordable units are created in accordance with the requirements of 6-08 of this chapter.
(c) Ineligible projects. The tax benefits of the Act are not available to:
(1) Any building or structure which is receiving tax exemption and/or tax abatement
under any other provision of state or local Iaw for new construction, conversion or
rehabilitation, including but not limited to, 488-a and 489 of the Real Property Tax Law
and 11-243 and 11-244 of the Administrative Code, and Article 16 of the General
Municipal Law; provided however, that if a building or structure is divided into
condominium units, and a condominium unit within the building is entitled to receive
permanent tax exemption under any statute under which exemption is granted based on
the exempt status of the owner, the granting of such an exemption shall not prevent the
remaining condominium unit or units from receiving 421-a exemption.
(2) Any multiple dwelling which results from the conversion or rehabilitation of any
building or structure;
(3) Any building or portion thereof which after the completion of construction is used as
a hotel, as that term is defined herein;
(4) Any building or portion thereof which after the completion of construction is used for
single room occupancy, as that term is defined herein;
(5) Any multiple dwelling situated on land which is mapped as a public park provided,
however, that this exclusion from eligibility for exemption shall not apply to any land which
has been mapped as a public park but which, for a period of ten years or more after the
date of such mapping, has not been acquired by the state or the city in which such land is
located and with respect to which land the Department of Parks and Recreation has
determined that such land is not required for public park purposes, and that such
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department has no intention of acquiring such land and that no funds have been allocated
for such purpose;
(6) Any multiple dwelling situated on land which was utilized for ten or more consecutive
years immediately prior to October first, nineteen hundred seventy-one as a "private park"
as hereinafter defined. A private park is a privately owned zoning lot in a densely
developed area having a minimum size of four thousand square feet, free of all
developments and containing only trees, grass, benches, walkways and passive
recreational facilities including structures incidental thereto which has been used and
maintained during said period for such passive recreational activity by the general public
without charge with the consent and participation of the owner thereof;
(7) Any multiple dwelling, or portion thereof, the construction of which commenced on
or after November twenty-ninth, nineteen hundred eighty-five and which is located within
any district in the county of New York where a maximum base floor area ratio, as that term
is defined in the Zoning Resolution, of fifteen or greater was permitted as of right by
provisions of such resolution in effect on April fourteenth, nineteen hundred eighty-two;
provided, however, that this rule shall no longer be applicable to the extent to which such
local law restriction is modified or repealed.
(8) Any multiple dwelling the footprint of which is located in whole or in part within any
area in the county of New York designated by the Zoning Resolution in effect on the date
of commencement of construction as either a manufacturing district or a mixed-use district
except to the extent that such multiple dwellings in a mixed-use district could be
constructed for residential purposes, as of right, pursuant to the Zoning Resolution, unless
construction actually commenced prior to January first, nineteen hundred eighty-two; this
restriction is in accordance with City policy of preservation of these districts for mainly
non-residential purposes: provided, however, that this restriction shall not apply to multiple
dwellings for which construction commenced after the effective date of these rules.
(9) For purposes of paragraphs (7) and (8) above, the obtaining of a variance or special
permit to allow residential construction in a manufacturing or mixed-used district shall not
render the newly constructed Class A multiple dwelling eligible for tax benefits under the
Act. in addition, to the extent the zoning lot of a project includes any building or structure
located in such non-eligible district that is not to be demolished, the partial tax exemption
shall be reduced by an amount equal to the area of the portion of the zoning lot which is
located in such ineligible area.
(10) Except for multiple dwellings qualifying for the benefits of the Act pursuant to
6-08 of this chapter:
(i) any project commenced, as that term is defined herein, after November 29, 1985
and before March 7, 2006 within the geographic exclusion area, bounded and described
as follows: Beginning at the intersection of the bulkhead line in the Hudson River and 96th
Street extended; thence easterly to 96th Street and continuing along 96th Street to its
easterly terminus; thence easterly to the intersection of 96th Street extended and the
bulkhead line in the East River; thence southerly along said bulkhead line to the
intersection of said bulkhead line and 14th Street extended; thence westerly to 14th Street
and continuing along 14th Street to Broadway; thence southerly along Broadway to
Houston Street; thence westerly along Houston Street to Thompson Street; thence
southerly along Thompson Street to Spring Street; thence westerly along Spring Street to
Avenue of the Americas; thence northerly along Avenue of the Americas to Vandam
Street; thence westerly along
Vandam Street to Varick Street; thence northerly along Varick Street to Houston Street;
thence westerly along Houston Street and continuing to its westerly terminus; thence
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westerly to the intersection of Houston Street extended and the bulkhead line in the
Hudson River; thence northerly along said bulkhead line to the intersection of said
bulkhead line and 11th Avenue extended; thence northerly to 11th Avenue and continuing
along 11th Avenue to 14th Street; thence easterly along 14th Street to 10th Avenue;
thence northerly along 10th Avenue to 28th Street; thence easterly along 28th Street to
9th Avenue; thence northerly along 9th Avenue to 33rd Street; thence easterly along 33rd
Street to 8th Avenue; thence northerly along 8th Avenue to 34th Street; thence easterly
along 34th Street to 7th Avenue; thence northerly along 7th Avenue to 41st Street; thence
westerly along 41st Street and continuing to its westerly terminus; thence westerly to the
intersection of 41st Street extended and the bulkhead line in
the Hudson River; thence northerly along said bulkhead line to the place of beginning;
(ii) any project commenced, as that term is defined herein, on or after March 7, 2006
and before May 11, 2007 within the geographic exclusion area, bounded and described as
follows: Beginning at the intersection of the bulkhead line in the Hudson River and 96th
bulkhead line in the East River; thence southerly along said bulkhead line to the
intersection of said bulkhead line and 14th Street extended; thence westerly to 14th Street
Street; thence westerly
along Vandam Street to Varick Street; thence northerly along Varick Street to Houston
Street; thence westerly along Houston Street and continuing to its westerly terminus;
thence westerly to the intersection of Houston Street extended and the bulkhead line in
the Hudson River; thence northerly along said bulkhead line to the intersection of said
bulkhead line and 11th Avenue extended; thence northerly to 11th Avenue and continuing
along 11th Avenue to 14th Street; thence easterly along 14th Street to 10th Avenue;
thence northerly along 10th Avenue to 30th Street; thence westerly along 30th Street to
11th Avenue; thence northerly along 11th Avenue to 41st Street; thence westerly along
41st Street and continuing to its westerly terminus; thence westerly to the intersection of
41st Street extended and the bulkhead line in the Hudson River; thence northerly along
said bulkhead line to the place of beginning; or
(iii) any project commenced, as that term is defined herein, on or after May 11, 2007
and before July 1, 2008 within the geographic exclusion area, bounded and described as
follows: Beginning at the intersection of the bulkhead line in the Hudson River and 96th
bulkhead Iine in the East River; thence southerly along said bulkhead line to the
intersection of said bulkhead Tine and 14th Street extended; thence westerly to 14th Street
Street; thence westerly
along Vandam Street to Varick Street; thence northerly along Varick Street to Houston
Street; thence westerly along Houston Street and continuing to its westerly terminus;
thence westerly to the intersection of Houston Street extended and the bulkhead line in
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the Hudson River; thence northerly along said bulkhead line to the intersection of said
bulkhead line and 30th Street extended; thence easterly along 30th Street to 11th Avenue;
thence northerly along 11th Avenue to 41st Street; thence westerly along 41st Street and
continuing to its westerly terminus; thence westerly to the intersection of 41st Street
extended and the bulkhead line in the Hudson River; thence northerly along said bulkhead
line to the place of beginning; or
(iv) any project commenced on or after July 1, 2008 within the geographic exclusion
area as defined pursuant to 6-09 of this chapter except as otherwise provided in such
6-09.
(d) Duration of exemption. Eligible buildings may receive a ten, fifteen, twenty or twentyfive year tax exemption, as described herein. In order to qualify for such benefits, the
multiple dwelling must meet the eligibility requirements described below for each level of
exemption.
(1) Only the ten year exemption is available to buildings located within the geographic
exclusion area described in 6-02(c)(10), above, and such buildings shall be eligible to
receive such benefits only if each building meets one of the following conditions: (i)
construction is carried out with substantial governmental assistance, or
(ii) the Department has imposed a requirement or has certified pursuant to 6-08 herein
that 20 percent (20%) of the units are affordable to persons of low and moderate income,
or
(iii) pursuant to an agreement with the Department, in conformity with the requirements
of 6-08 herein, housing units affordable to persons of low and moderate income are
either newly constructed or substantially rehabilitated off-site.
(2) The ten year exemption is available to buildings located outside the geographic
exclusion area but in Manhattan on tax lots south of or adjacent to either side of 110th
Street, the construction of which commenced on or after July 1, 1985, except that the
fifteen year exemption shall be available to such buildings if:
(i) construction is carried out with substantial governmental assistance; or
(ii) the Department has imposed a requirement or has certified pursuant to herein that
20 percent(20%)of the units are affordable to persons of low and moderate income.
(3) The fifteen year exemption is available to buildings located in the boroughs of the
Bronx, Brooklyn, Queens, Staten Island and in Manhattan north of 110th Street, the
construction of which commenced on or after July 1, 1985, unless such multiple dwellings
are eligible for the twenty-five year exemption described in (5) below.
(4) The twenty year exemption is available in the borough of Manhattan for buildings on
tax lots now existing or hereafter created south of or adjacent to either side of one
hundred tenth street which commenced construction after July 1, 1992 and before
December 28, 2010, only if:
(i) construction is carried out with substantial governmental assistance; or
(ii) the Department has imposed a requirement or has certified pursuant to 6-08 herein
that 20 percent(20%)of the units are affordable to families of low and moderate income.
(5) The twenty-five year exemption is available to buildings located in the boroughs of
the Bronx, Brooklyn, Queens, Staten Island or Manhattan north of 110th Street, the
construction of which commenced on or after July 1, 1985, if the multiple dwelling:
(i) is located in one of the following areas:
(A) Neighborhood Preservation Program Areas as determined by the Department as of
June 1, 1985, or
(B) Neighborhood Preservation Areas as determined by the New York City Planning
Commission as of June 1, 1985, or
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(C) an area eligible for mortgage insurance provided by the Rehabilitation Mortgage
Insurance Corporation (REMIC) as of May 1, 1992, or
(D) an area receiving funding for a neighborhood preservation project pursuant to the
Neighborhood Reinvestment Corporation Act (42 U.S.C. 180 et seq.) as of June 1, 1985,
or
(ii) meets one of the following conditions:
(A) is constructed with substantial governmental assistance, or
(B) is a building where the Department has imposed a requirement or has certified that
20 percent(20%) of the units contained in that multiple dwelling are affordable to persons
of low and moderate income, exclusive of those units created pursuant to 6-08 herein.
(e) Construction requirements. To be eligible for partial tax exemption, a multiple
dwelling must meet the following requirements:
(1) it shall contain at all times not less than the number of dwelling units specified in
6-02(b)(1). A multiple dwelling containing the requisite number of dwelling units may
include: garden type maisonette dwelling projects containing a series of attached dwelling
units which are provided as a group collectively with all essential services such as, but not
limited to, water supply and house sewers, and which units are located on a site or plot
under common ownership, including ownership as a condominium; and buildings erected
at the same time with common exterior walls, provided that in each case such buildings
are operated as a unit under a single ownership, notwithstanding that Certificates of
Occupancy were issued by the Department of Buildings for separate portions thereof
covering less than the requisite number of units.
(2) If a multiple dwelling contains more than one hundred dwelling units, not less than
ten percent of the dwelling units in such multiple dwelling shall contain at least four and
one-half rooms and, in addition, not less than fifteen percent shall contain at (east three
and one-half rooms. The number of rooms in a dwelling unit shall be computed in
accordance with the definition of "room count' contained in subdivision (c) of 6-01 of this
chapter. Those units consisting of four and one-half rooms or more, to the extent that they
comprise ten percent of ail units in the multiple dwelling, shall not be included as part of
the units which must contain three and one-half rooms, comprising a total of fifteen
percent of all the units in the multiple dwelling. This room count requirement may be
waived in writing at the discretion of the Department:
(i) where the multiple dwelling is to provide housing for the elderly; or
(ii) upon the filing of adequate documentation from which the Department determines
that compliance with the room count requirement would impose an undue and
unreasonable economic hardship. The necessity of alteration of existing construction shall
not in itself be deemed such a hardship.
(3) If construction of a new multiple dwelling commences on or after August 1, 1981
and such construction takes place on land which, immediately prior to the commencement
of construction, was improved with a residential building or buildings that have since been
substantially demolished, and the new building or buildings contain more than twenty
dwelling units, then such new building or buildings shall contain at least five dwelling units
for each Class A dwelling unit in existence immediately prior to the demolition preceding
construction. The calculation of the ratio of new to old units shall be made based on the
entire site included in the 421-a application. For purposes of this paragraph, "immediately
prior to the commencement of construction" shall be deemed to be a date which is one
month prior to the commencement of construction.
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Sectio~z 6-02: Eligibility.
Paee 6 of 10
(fl Site requirements.(1) To be eligible for partial tax exemption, the land upon which an
eligible project is located must have been vacant, predominantly vacant, under-utilized, or
improved with anon-conforming use on the operative date. The operative date shall be:
(i) thirty-six months prior to the commencement of construction, if construction
commences on or after August 1, 1981; or
(ii) October 1, 1971, if construction commenced before August, 1981.
(2) If only part of the land upon which an otherwise eligible project is located satisfies
the requirement set forth in paragraph (1), above, or if only part of a building or structure
on said land would satisfy that requirement, partial tax exemption shall be available in
accordance with the following formula:
(i) If fifty-one percent (51%)or more of the area of the land satisfies the requirement set
forth above, then the partial tax exemption shall be reduced by an amount equal to the
percent of the area of the site which does not satisfy that requirement;
(ii) If less than fifty-one percent (51%) of the area of the land satisfies the requirement
set forth above, then the entire site is ineligible for partial tax exemption hereunder.
(3) Definitions. For the purpose of this subdivision (fl, the following definitions are
applicable:
Actual Assessed Valuation. "Actual assessed valuation" shall mean the assessed
valuation of a tax lot without reference to1805(3) of the Real Property Tax Law.
Land improved with anon-conforming use. "Land improved with a nonconforming
use" is defined in the same manner as that term was defined in the Zoning Resolution in
effect on the operative date.
Predominantly vacant. "Predominantly vacant' land is a plot of land on which not more
than fifteen percent (15%) of the lot area contained enclosed, permanent, improvements.
Fences, sheds, garage attendants booths, pier bulkheads, lighting fixtures and similar
items, or any improvement having an Actual Assessed Value of less than $2,000 shall not
constitute an enclosed, permanent improvement.
Under-utilized. "Under-utilized" land is land or space which was under-utilized by virtue
of the fact that:
(A) It was improved with a residential building or buildings
(a) whose room count in occupied dwelling units numbered not more than seventy
percent of the room count in dwelling units in the new building or buildings; or
(b) whose aggregate floor area was no greater than seventy percent of the aggregate
floor area of the new building or buildings.
(c) provided, however, that buildings commenced prior to the effective date of these
rules shall be governed by the rules in effect at the time of commencement.
(B) It consisted of air rights above a public roadway, waterway, railroad right of way,
public buildings, or other similar property used by the general public, provided that the
public building was used by the general public on the operative date and continues to be
so used and classified after the completion of the eligible construction, and provided
further that "public building" shall mean structures or parts of structures in which persons
congregate for civic, political, educational, religious or recreational purposes, or in which
persons are harbored to receive medical, charitable or other care or treatment, or in which
persons are held or detained by reason of public or civic duty, or for correctional purposes,
including among others, court houses, schools, colleges, libraries, museums, exhibition
buildings, lecture halls, churches, assembly halls, lodge rooms, club houses with more
than five sleeping rooms, dance halls, theatres, bath houses,
hospitals, asylums, armories, fire houses, police stations, jails and passenger depots; or
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(C) Construction commenced on or after November 29, 1985 and before May 12, 2000
on land that was improved with anon-residential building or buildings
(a) each of which contained:
(1) no more than the permissible floor area ratio for non-residential buildings in the
zoning district in question, and
(2) a floor area ratio which was twenty percent(20%) or less of the maximum floor area
ratio for residential buildings for such zoning district, or
(b) each of which had an actual assessed valuation equal to or Tess than twenty
percent (20%) of the actual assessed valuation of the land on which the building or
buildings were situated, or
(c) which, by reason of the building's configuration or substantial structural defects not
brought about by deferred maintenance practices or intentional conduct, could no longer
be functionally or economically utilized, on the operative date, in the capacity in which it
was formerly utilized.
(D) Except as provided in subparagraph (E) of this paragraph, commencement of
construction occurred on or after May 12, 2000 and before October 30, 2002 on land that
was improved with anon-residential building or buildings
(2) a floor area ratio which was seventy-five percent (75%) or Tess of the maximum
floor area ratio for residential buildings for such zoning district, or
(b) each of which had an actual assessed valuation equal to or less than seventy-five
percent (75%) of the actual assessed valuation of the land on which the building or
(c) which, by reason of the building's configuration, or substantial structural defects not
(E) Commencement of construction occurred on or after May 12, 2000 and before
October 30, 2002 on a tax lot now existing or hereafter created which is located south of
or adjacent to either side of 110th Street in the borough of Manhattan and on land that
was improved with anon-residential building or buildings
(2) a floor area ratio which was fifty percent (50%) or less of the maximum floor area
ratio for residential buildings in such zoning district, or
(b) each of which had an actual assessed valuation equal to or less than fifty percent
(50%) of the actual assessed valuation of the land on which the building or buildings were
situated, or
(F) Except as provided in subparagraph (G) of this paragraph, commencement of
construction occurred on or after October 30, 2002 on land that was improved with a
nonresidential building or buildings
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(2) (i) a floor area ratio which was seventy-five percent (75%) or less of the maximum
floor area ratio for residential buildings in such zoning district, or (ii) if the land was not
zoned to permit residential use on the operative date, had a floor area ratio which was
seventy-five percent (75%) or less of the floor area ratio of the residential building which
replaces such non-residential building; or
(b) each of which had an actual assessed valuation equal to or less than seventy-five
percent (75/o) of the actual assessed valuation of the land on which the building or
(G) Commencement of construction occurred on or after October 30, 2002 on a tax lot
now existing or hereafter created which is located south of or adjacent to either side of
110th Street in the borough of Manhattan and on land that was improved with a nonresidential building or buildings
(2) (i) a floor area ratio which was fifty percent(50%) or less of the maximum floor area
ratio for residential buildings in such zoning district, or (ii) if the land was not zoned to
permit residential use on the operative date, had a floor area ratio which was fifty percent
(50%) or less of the floor area ratio of the residential building which replaces such nonresidential building; or
(b) each of which had an actual assessed valuation equal to or less than fifty percent
(50%) of the actual assessed valuation of the land on which the building or buildings were
situated, or
brought about by deferred maintenance practices or intentional conduct, could not longer
Vacant. "Vacant' land is land, including land under water, which contains no enclosed,
permanent improvement. Fences, sheds, garage attendants booths, piers, bulkheads,
lighting fixtures, and similar items, or any improvement having an Actual Assessed Value
of less than $2,000 shall not constitute an enclosed, permanent improvement.
(g) Rent regulatory requirements. To be eligible for partial tax exemption the land upon
which the eligible project is located must meet the following letting, rental and occupancy
requirements:
(1) If a building which, on December 31, 1974, contained more than twenty-five
occupied dwelling units administered under the City Rent and Rehabilitation Law, the Rent
Stabilization Law of nineteen hundred sixty-nine, or the Emergency Tenant Protection Act
of nineteen hundred seventy-four, is displaced, or any unit therein is displaced, the new
multiple dwelling will be eligible for partial tax exemption only if a Certificate of Eviction
was issued for at least one dwelling unit in the displaced building. if only one unit is
displaced as the result of eligible construction, the Certificate of Eviction must pertain to
that displaced unit. Notwithstanding the foregoing, the sale, transfer or utilization of air
http://eules.ciryofnewyork.us/print/content/section-6-02-eligibility
2/I 6/2016
P1ge 9 of 10
rights over residential buildings which were not demolished shall not be construed as a
displacement within the purview of this subdivision (g).
(2) Notwithstanding the provisions of any local law for the stabilization of rents in
multiple dwellings or the Emergency Tenant Protection Act of 1974, the rents of a unit
shall be fully subject to regulation under such local law or such Act, unless exempt under
such local law or such act from regulation by reason of the cooperative or condominium
status of the unit, for the entire period during which the property is receiving tax benefits
pursuant to the Act, or for the period any such applicable Iocai law or such Act is in effect,
whichever is shorter. Thereafter, such rents shall continue to be subject to such regulation
to the same extent and in the same manner as if this subdivision (g) had never applied
thereto, except that for dwelling units in buildings completed, as that term is defined
herein, on or after January 1, 1974, such rents shall be deregulated if:
(i) with respect to dwelling units located in multiple dwellings completed after January 1,
1974 such unit becomes vacant after the expiration of the lease for the unit in effect when
such benefit period or applicable law or Act expires, provided, however, such unit shall not
be deregulated if the Commissioner of the New York State Division of Housing and
Community Renewal or a court of competent jurisdiction finds the unit became vacant
because the owner thereof or any person acting on his or her behalf engaged in any
course of conduct, including but not limited to, interruption or discontinuance of essential
services which interfered with or disturbed or was intended to interfere with or disturb the
comfort, repose, peace or quiet of the tenant in his use or occupancy of such unit, and that
upon such finding in addition to being subject to any other penalties or remedies permitted
by law, the owner of such unit shall be barred from collecting rent for such unit in
excess of that charged to the tenant, if the tenant so desires, in which case the rent of
such tenant shall be established as if such tenant had not vacated such unit, or
compliance with such other remedy, including, but not limited to, all remedies provided for
by the emergency tenant protection act of nineteen seventy-four for rent overcharge or
failure to comply with any order of the Commissioner of the New York State Division of
Housing and Community Renewal, as shall be determined by said Commissioner to be
appropriate; provided, however, that if a tenant fails to accept any such offer of restoration
of possession, such unit shall return to rent stabilization at the previously regulated rent.
(ii) with respect to dwelling units located in multiple dwellings with became subject to
the rent stabilization provisions of the Act on or after July 1, 1984, the lease for the unit
expires after such tax benefit period expires, provided that each lease and renewal thereof
for such unit for the tenant entitled to a lease at the time of such deregulation contained a
notice in at least twelve (12) point type informing such tenant that the unit shall be subject
to deregulation upon the expiration of such benefit period and stated the approximate date
on which such benefit period was expected to expire. If each lease and renewal thereof
has not contained such notice, a unit covered by such lease shall be subject to subdivision
(i) above even though it became subject to the rent stabilization provisions of the Act on or
after July 1, 1984. This subdivision (ii) shall not apply to any unit in any multiple dwelling
which was subject to the rent stabilization provisions of
the Act prior to July 1, 1984, notwithstanding any contrary provision in any lease or
renewal thereof.
(3) Notwithstanding paragraph (2) above, dwelling units in multiple dwellings owned as
cooperatives or condominiums which are exempt from such provisions of law shall not be
required to be subject to the provisions of law set forth in that paragraph (2) during the
time period specified therein. Newly created dwelling units in a building for which a
prospectus for condominium or cooperative formation has been submitted to the Attorney
2/16/2016
Page 10 of 10
General at the time of application for benefits to the Office, shall not be required to be
registered with the New York State Division of Housing and Community Renewal,
provided that an affidavit has been filed with the Office stating that the sponsor will register
the building and all units as they become occupied, with the New York State Division of
Housing and Community Renewal within fifteen months from the date of issuance of a
Final Certificate of Eligibility if a cooperative or condominium plan has not been declared
effective by
that time.
(4) The offering by the owner to all tenants in rental dwelling units in the multiple
dwelling, of an initial lease of at least two years; unless the dwelling unit's rent is regulated
by local laws, such as 26-401 of the Administrative Code, which do not provide for the
offering of leases for fixed terms. This requirement shall not preclude a shorter lease
where requested by the tenant, or where a lease of at least two years is specifically
prohibited by the terms of a Department of Housing and Urban Development regulatory
agreement for an insured subsidized project, or where, through foreclosure, title to a
building eligible for partial tax exemption pursuant to the Act is held subsequently by the
Department of Housing and Urban Development.
(5) No lease for dwelling units subject to the Rent Stabilization Law or Emergency
Tenant Protection Act which are registered with the New York State Division of Housing
and Community Renewal shall contain escalation clauses for real estate taxes or any
other provisions for increasing the rent set forth in the (ease other than permitting an
increase in rent pursuant to an order of the New York State Division of Housing and
Community Renewal or the Rent Guidelines Board; or an increase of 2.2 percent pursuant
to 6-04(b) of this chapter.
Source URL: http://rules.citvofnewvork.us/content/section-6-02-eligibility
Links:
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Section 6-03: Local Commimiry Planning Board Review.
Page 1 of 1
Published on NYC Rules (http://rules.cityofnewVork.us)

Home > Section 6-03: local Community Planning Board Review.

Title 28: Department of Housing Preservation and Development ~,> > Chapter 6: Tax
Exemption Pursuant To Section 421-a of the Real Property Tax Law and Section 11245 Of The Administrative Code Of The Citv Of New York ~,~
(a) Submission of application to local community board. An applicant for partial tax
exemption pursuant to the Act whose project contains more than twenty dwelling units
shall send a complete copy of the application for a Preliminary Certificate of Eligibility and
supporting papers by certified mail or hand delivery to the local Community Planing
Board for the area in which such project is located within ten days of submission of the
application to the Department. A copy of the receipt shall be hand delivered or mailed to
the Department for annexation to the application no later than ten days after the date
appearing on such receipt.
(b) Standards for review. The local Community Board shall have aforty-five day period
after receipt of such application and supporting papers to file objections with the
Department as to the applicants eligibility for partial tax exemption hereunder. Such
objections, if any, may only be based upon an applicants eligibility under subdivision two
of 421-a of the Real Property Tax Law or the applicant's failure to comply with the
eligibility requirements in 6-02 of these regulations. The Iocal Community Board may, in
its own discretion and within the forty-five day period, hold a public hearing to determine
whether any objections as to eligibility should be filed. Nothing contained in this section
shall preclude a final determination of ineligibility of an applicant by the Department prior
to the expiration of the forty-five day period.
(c) Notification to community board. In the event the local Community Board files
objections, the Department shall make a determination thereon and notify such
Community Board within forty-five days after receipt of the objections.
(d) Review of projects containing more than one hundred fifty dwelling units. Where a
project contains more than one hundred fifty dwelling units, the local Community Board
may, within thirty days of the receipt of a copy of an applicants notification, request the
Department to hold a public hearing solely on the question of the applicant's eligibility
under subdivision two of 421-a of the Real Property Tax Law or the applicants failure to
comply with the eligibility requirements in 6-02 of this chapter. If such request is made,
the Department shall hold a hearing before the Commissioner or other person or persons
whom he or she may designate, make a determination, and notify the Community Board
within forty-five days after such hearing.
Source URL: http://rules.citvofnewyork.us/contenUsection-6-03-local-community-Planning-board-review
Links:
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Section 6-04: Determination of Initial Rent; Rent Increases.
Page 1 of3
Published on NYC Rules (http://rules.cityofnewvork.us)

Home > Section 6-04: Determination of Initial Rent; Rent Increases.

Exemption Pursuant To Section 421-a of the Real Property Tax Law and Section 11245 Of The Administrative Code Of The City Of New York ~,~
(a) Determining the initial adjusted monthly rent and the comparative adjusted monthly
rent for rental dwelling units. No certification of eligibility shall be issued by the Department
until the Department determines the initial adjusted monthly rent to be paid by tenants
residing in rental dwelling units contained within the multiple dwelling. Except for
affordable units, the initial adjusted monthly rent is determined in accordance with the
provisions of paragraph (3) below.
(1) The total expenses of the multiple dwelling shall be determined by the Department
in order to calculate the initial adjusted monthly rent. Total expenses shall mean the
annual total of the following:
(i) An amount for the annual cost of operation and maintenance, as established
pursuant to the Annual Schedule of Reasonable Costs; plus,
(ii) An amount for vacancies, contingency reserves and management fees as
established pursuant to the Annual Schedule of Reasonable Costs; plus,
(iii) Projected real property taxes to be levied on the multiple dwelling and the land on
which it is situated at the time of estimated initial occupancy; plus,
(iv) Fourteen percent of the total project cost, as determined pursuant to 6-05(b)(1)(i)
and the Annual Schedule of Reasonable Costs, which amount will include debt service;
less,
(v) The estimated annual income to be derived from any Floor Area of Commercial,
Community Facilities, and Accessory Use Space in the multiple dwelling.
(2) The adjusted monthly rent per room shall be determined by the Department by
dividing the total expenses as determined pursuant to paragraph (1) above by twelve (12)
and then dividing that amount by the Room Count as defined in subdivision (c) of 6-01 of
this chapter; i.e.,
Total
Expenses
12
Total
Monthly
Expenses
Total Monthly
Expenses
Room Count
Adjusted
Monthly
Rent Per
Room
(3) The The initial adjusted monthly rent for each dwelling unit shall be
determined by the Department by multiplying the adjusted monthly rent per
room to be determined pursuant to paragraph (2) above by the Room Count, as
defined in subdivision (c) of 6-01 of this chapter, of each rental dwelling unit.
Adjustments to the initial adjusted monthly rent per room to be determined
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Page 2 of 3
pursuant to paragraph (2) above by the Room Count, as defined in subdivision

(c) of 6-01 of this chapter, of each rental dwelling unit. Adjustments to the
initial adjusted monthly rent for any dwelling unit may be allowed by the
Department provided that the total of the rentals charged in the multiple dwelling
do not exceed the total expenses of such multiple dwelling, as determined
pursuant to paragraph (1) above; i.e.,
Adjusted Monthly
Rent
Per Room x Room
Count
Initial Adjusted
Monthly
Rent for Such Dwelling
Unit
Per Dwelling Unit
(b) Rent increases. The owner of a multiple dwelling receiving partial tax
exemption may insert in each lease to be effective during the period of gradual
diminution of tax exemption, as defined in 6-06(e) of this chapter, a provision
for an annual rent increase over the initial adjusted monthly rental at a rate not
to exceed 2.2 percent per annum on the anniversary date of the first lease for
the unit provided, however, that no increase shall be permitted pursuant to this
subdivision (b) unless specifically provided for in each affected lease, and
provided further that no more than one such increase per unit may be charged
or collected in each given year regardless of the number of lease renewals or
new leases which may pertain to that unit. The initial 2.2 percent escalation and
ail subsequent escalations shall be based solely on the actual rental amount in
effect (regardless
of whether the legal regulated rent may be greater) at the commencement of
the period during which the increase may be charged and shall not be
compounded from year to year but rather shall remain constant based on said
rent. In addition, the increase shall be independent of any other escalation
authorized by the Rent Guidelines Board and shall not be considered or
included when a Rent Guidelines Board increase is effected, making the latter
increase effective upon the base rent, excluding the 2.2 percent escalation. The
maximum increase permitted by this subdivision (b) is 19.8 percent over the
actual rental amount in effect at the commencement of the period during which
the increase may be charged. The maximum increase permitted by this
subdivision (b) may be charged in each year following the expiration of the tax
benefit period, but shall not exceed 19.8 percent, or that amount charged in the
last year of the exemption period, and shall not become part of the base rent.
(c) Annual rent schedule. Each year the owner shall make available to the Office a
schedule of rents for each unit in the building.
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Section 6-05: ApplicaCion Procedure; Documentation.
Page 1 of 7
Published on NYC Rules (http://rules.cityofnewyork.us)

Home > Section 6-05: Application Procedure; Documentation.

Title 28: Department of Housing Preservation and Development ~,> > Chapter 6: Tax
Exemption Pursuant To Section 421-a of the Real Property Tax Law and Section 11245 Of The Administrative Code Of The Citv Of New York ni
(a) Application forms. All prescribed forms and applications must be obtained from the
Department of Housing Preservation and Development, Office of Tax Incentive Programs,
3rd Floor, 150 William Street, New York, New York 10038. All applications shall be
submitted to the Department on such form or forms as shall be prescribed by the
Department. Only applications complete in all detail shall be considered for a Certificate of
Eligibility. All forms must be filled out fully and legibly by the applicant and shall be
typewritten or inscribed in permanent ink.
(b) Preliminary Certificate of Eligibility; documentation. An application for a Preliminary
Certificate of Eligibility must be made to the Office after the commencement of
construction but prior to the issuance of either a Temporary Certificate of Occupancy for
all residential areas or a Permanent Certificate of Occupancy. For a public project, the
Department may grant an extension of up to four years for filing the application for a
Preliminary Certificate of Eligibility. The application fora Preliminary Certificate of
Eligibility shall consist of an affidavit in the form required by the Office and shall include
the following:
(1) A sworn statement by the owner (if the owner is other than an individual, the
statement must be certified by the chief executive officer or managing partner of the
owner), together with certifications by certified public accountants, appraisers, engineers
and architects where required by this chapter, attesting to the accuracy of information
provided to the Department concerning the eligibility of a project under 6-02 of this
chapter and the initial adjusted monthly rent required by the Act for each rental dwelling
unit contained within the multiple dwelling. This sworn statement shall include, as a
minimum, a statement of the following:
(i) Total project cost of the newly constructed building and a breakdown of the costs:
(A) Land acquisition cost or purchase price shall be certified to by an independent
certified public accountant or by an appraisal of value of the land and any improvements
thereon prepared by an independent appraiser found to be qualified by the Department if
the land was purchased more than two years prior to the date of the commencement of
construction or in the event that the land was obtained by other than purchase; provided
further that in the event the land is leased and not purchased, rent attributable to the
development period shall be included in total project cost.
(B) Site preparation costs not covered by an appraisal in subparagraph (A) above shall
be certified to by an affidavit from a licensed architect or engineer on a date not more than
ninety days prior to the filing of an application for a Preliminary Certificate of Eligibility, and
an estimate of the balance of such costs to be incurred prepared by such a licensed
engineer or architect. The application for a Final Certificate of Eligibility shall contain a
statement of ail site preparation costs incurred, which shall be certified to by an
independent certified public accountant. Site preparation costs may include, but are not
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Section 6-05: Application Procedure; Documentation.
Page 2 of 7
limited to, costs expended to demolish structures. Site preparation costs may also include
relocation expenses, which may be independently certified to by the owner or applicant;
(C) A good faith estimate of construction costs as well as an estimate prepared by a
licensed engineer of any abnormal, unique or special foundation costs which may be
incurred;
(D) An allowance for off-site costs, including but not limited to legal, engineering, and
architectural fees, insurance, interest and taxes during construction, title and mortgage
fees;
(E) Specific other amounts which would ordinarily and customarily be incurred in
connection with the construction of an eligible project.
(ii) Compliance with eligibility requirements including:
(A) Statement of the conditions of the site as of thirty-six months prior to the
commencement of construction, or as of October 1, 1971, as required by this chapter,
along with sufficient documentation to demonstrate the conditions of the site to the
satisfaction of the Department;
(B) A statement of the number of occupied dwelling units in existence on the site on
December 31, 1974;
(C) A statement, if the construction is to include more than twenty dwelling units, that
the building will provide no less than five Class A dwelling units for each Class A dwelling
unit in existence on the site immediately prior to the commencement of new construction;
as required by this chapter;
(D) A statement that the new multiple dwelling will contain not less than three dwelling
units;
(E) A statement that not less than ten percent of the dwelling units in the new multiple
dwelling will contain at least four and one-half rooms and that no less than fifteen percent
of such dwelling units will contain at least three and one-half rooms, as determined
pursuant to 6-02(d) hereof, if the multiple dwelling is to contain more than one hundred
dwelling units, unless such requirements are waived in writing by the Department;
(F) The submission to the Department of one set of plans approved by the Department
of Buildings, as evidenced by a seal of the Department of Buildings thereon or an
architects affidavit that such plans are so approved.
(G) If construction commenced on or before November 29, 1985, sufficient
documentation to demonstrate to the satisfaction of the Department the condition of the
site on November 29, 1985.
(H) If construction commenced after November 29, 1985 and is located within the
geographic exclusion area,
(a) written certification by the Department in accordance with 6-08 herein, that 20
percent (20%) of the units contained in that building will be affordable to persons of low
and moderate income; or
(b) written certification by the Department, in accordance with 6-08 herein, that
construction is being carried out with substantial governmental assistance; or
(c) a copy of a written agreement with the Department for the construction or substantial
rehabilitation of housing units affordable to persons of low and moderate income on
another site, such agreement expressly providing that the creation of said units is intended
to meet the requirements of 6-08 herein; or,
(d) Negotiable Certificates issued pursuant to 6-08, herein, evidencing the bearer's
entitlement to the benefits of the Act for the units for which the applicant is seeking tax
benefits.
(iii) The date upon which it is estimated that initial occupancy will commence.
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Section 6-05: Application Proceci~ue; DocLmzenCaCion.
Page 3 of 7
(2) A statement of intention that the owner will register all rental units with the New York
State Department of Housing and Community Renewal prior to initial occupancy and will
offer initial leases of not less than two years to tenants of such stabilized units, or such
shorter term as the tenant requests, or a statement that the multiple dwelling is to be
owned as a cooperative or condominium.
(3) A certified copy of a Certificate of Eviction, if required by 6-02(fl herein.
(4) A schedule of proposed initial rents for each rental dwelling unit in the building. No
requests for revision of this schedule will be considered once a Final Certificate of
Eligibility has been issued for the building in question.
(c) Filing fees. Anon-refundable deposit toward anon-refundable filing fee for each
multiple dwelling for which application is made for benefits hereunder shall be paid at the
time of the filing of the application for a Preliminary Certificate of Eligibility. The deposit
shall be in the amount of one hundred ($100) dollars and shall form part of the nonrefundable filing fee of four-tenths (4/10) of one percent (.4%) of the total project cost as
determined pursuant to 6-05(b) herein, or four-tenths (4/10) of one percent (.4%) of the
total project sell-out price, if the building will be owned as a cooperative or condominium,
as stated in the last amendment to the offering plan accepted for filing by the New York
State Attorney General, at the option of the applicant, less any fees paid to the
Department pursuant to 6-08(k)(3), herein, which resulted in the issuance of a written
agreement. Payment of the balance of this fee shall be made no
later than ninety days after approval of the application for a Preliminary Certificate of
Eligibility. If payment is not made within such time, a late fee of an additional one-tenth
(1/10) of one percent (.1%) of the total project cost, as determined pursuant to 6-05(b)
herein shall be charged. In no event shall any Preliminary Certificate of Eligibility be
issued prior to full payment of all filing fees deemed by the Department to be outstanding.
These fees shall apply to all applications where the first Certificate of Eligibility, for such
application, whether Preliminary or Final, is issued after the effective date of these rules.
All other applications shall be subject to the fees defined by the rules in effect immediately
prior to promulgation of these rules.
Payment shall be made by a certified or cashier's check payable to the Commissioner
of the Department of Finance of the City of New York. If the application for a Final
Certificate of Eligibility includes an increase in the amount of the total project cost, an
additional filing fee shall be paid based upon such increase in the total project cost as is
approved by the Department.
(d) Final Certificate of Eligibility: documentation. (1) The owner must file an application
for a Final Certificate of Eligibility which shall consist of an affidavit in the form required by
the Commissioner and shall include the following:
(i) A sworn statement of the actual total project cost of the newly constructed building.
Such actual project cost may be approved by the Department as the total project cost of
such building provided all of the items comprising such actual total project cost are
certified to by a certified public accountant licensed by the State of New York, and further
provided that such actual total project cost does not exceed the specific costs determined
by the Department pursuant to its promulgated Annual Schedule, plus any allowable
abnormal, unique or special foundation costs which may be incurred. In the event that
costs relating to commercial portions of the building are incomplete, an estimate of such
costs may be accepted tentatively by the Office, provided a supplemental accountants
certification is provided after such costs have been determined. If additional fees are owed
on the basis of such supplemental certification, benefits are subject to revocation
pursuant to chapter thirty-nine of this title if the fees are not paid. Where such costs differ
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Section 6-05: Application Procedtiue; Documentation.
Page 4 of 7
from the original cost certification filed with the application for a Preliminary Certificate of
Eligibility, such sworn statement shall include
(A) the difference in costs, and
(B) the reason or basis for such difference in costs;
(ii) A revised schedule of proposed initial rents, if any, containing any modification of
the original schedule filed with the application for a Preliminary Certificate, for each rental
dwelling unit in the building. No requests for revision to this schedule will be considered
once a Final Certificate of Eligibility has been issued for the building in question;
(iii) (A) Evidence satisfactory to the Office in a form approved by the Department that
the owner of rental dwelling units has registered the building and any occupied units with
the New York State Division of Housing and Community Renewal, and, if the building is
not fully occupied, an affidavit stating that the owner shall register all remaining units as
they become occupied and shall submit proof of such registration of all remaining units in
a form approved by the Department upon the earlier to occur of (1) the occupancy of the
last remaining unit, or (2) one year from the date of Completion of Construction; or (B) if
the project is to be owned and operated as a cooperative or a condominium, a statement
by the owner that if the prospective cooperative or condominium plan has not been
declared effective for filing at a time fifteen months after the issuance of a Final Certificate
of Eligibility, such owner will register these rental units
with the New York State Division of Housing and Community Renewal no later than fifteen
calendar days after such fifteen month period.
(iv) A statement of the date of completion of the building.
(v) If construction commenced after November 29, 1985 within the geographic
exclusion area, and construction was not carried out with substantial governmental
assistance, a copy of the Written Agreement and proof of compliance with the
requirements of 6-08 herein, including a Permanent Certificate of Occupancy for ail new
or substantially rehabilitated units or a Temporary Certificate of Occupancy for the entire
residential portion of a building or buildings located outside the geographic exclusion area
which was constructed or rehabilitated pursuant to an agreement with the Department to
qualify the building located within the geographic exclusion area for the benefits of the Act.
Proof of compliance shall include the requisite number of Negotiable Certificates in
accordance with the ratios set forth in 6-08(b).
(vi) In the event that through no fault of the applicant, and due to unforeseen
circumstances which are beyond the control of the applicant, construction of the off-site
units which was promptly commenced and has been diligently proceeding has not been
completed before the completion of the building applying for benefits pursuant to the Act,
the Department, in its sole discretion, may permit the applicant to submit a Letter of Credit
equal to 150 percent of the Department approved estimate of the cost of completing the
off-site units. The written agreement with the Department will be amended to provide a
new completion date, after which the Department shall have the authority to use the
proceeds of the Letter of Credit to complete the construction.
(vii) Proof that the multiple dwelling has been registered with the Department in
accordance with the provisions of article two of subchapter four of the Housing
Maintenance Code.
(viii)(A) For applications received on or after December 19, 2006, an affidavit from the
owner certifying that whenever any household appliance in any dwelling unit, or any
household appliance that provides heat or hot water for any dwelling unit in the multiple
dwelling, is installed or replaced with a new household appliance on or after December 19,
2006, such new appliance shall be certified as Energy Star. If applicable, such affidavit
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Section 6-05: Application Procedure; Docwnentation.
Page 5 of 7
may instead certify (a) that an appropriately-sized Energy Star certified household
appliance is not manufactured, such that movement of walls or fixtures would be
necessary to create sufficient space for such appliance, and/or (b) that an Energy Star
certified boiler or furnace of sufficient capacity is not manufactured.
(B) For purposes of this subparagraph (viii), (a) "household appliance" shall mean any
refrigerator, room air conditioner, dishwasher or clothes washer, within a dwelling unit in
the multiple dwelling that is provided by the owner, and any boiler or furnace that provides
heat or hot water for any dwelling unit in the multiple dwelling, and (b)"Energy Star" shall
mean a designation from the United States Environmental Protection Agency or
Department of Energy indicating that a product meets the energy efficiency standards set
forth by the agency for compliance with the Energy Star program.
(ix) For applications received for any projects that commence construction on or after
December 28, 2007, an affidavit from the owner certifying that either (A) all building
service employees employed or to be employed at the building shall receive the applicable
prevailing wage for the duration of such building's tax exemption pursuant to the Act, or
(B) such project contains Tess than fifty dwelling units, or (C) at initial occupancy, at least
fifty percent (50%) of the dwelling units in the multiple dwelling will be affordable to
individuals or families with a gross household income at or below one hundred twenty-five
percent (125%) of the area median income and that any such rental units will remain
affordable for the entire period during which they receive benefits pursuant to this Act.
(2) The application for a Final Certificate of Eligibility must be filed as follows:
(i) for a multiple dwelling to be owned as a rental, the application must be filed prior to
occupancy of the building, but no earlier than the date of the application for a Preliminary
Certificate of Eligibility.
(ii) for a multiple dwelling to be owned as a condominium or a cooperative, the
application must be filed prior to the first taxable status date following the completion of
construction. in the event such application is not timely filed, benefits of the Act shall be
revoked pursuant to 6-07(e)(5) herein only where the failure to file such application has
resulted in the extension of the construction benefit period beyond the actual period of
construction.
(iii) (A) For a public project, the Department may grant an extension of up to four years
for filing the application for a Final Certificate of Eligibility, provided that to the extent to
which the failure to file such application has resulted in the extension of the construction
benefit period beyond the actual period of construction for such public project, the
construction benefit period shall be retroactively adjusted so that it is coterminous with the
actual construction period.
(B) For a building which is not a public project, the Department may grant an extension
of up to two years for filing the application for a Final Certificate of Eligibility where the
applicant has established that it reasonably relied upon the representations of third parties
that the benefits of the Act would be available, provided that to the extent to which the
failure to file such application has resulted in the extension of the construction benefit
period beyond the actual period of construction for such building, the construction benefit
period shall be retroactively adjusted so that it is coterminous with the actual construction
period.
(3) The applications for a Final Certificate of Eligibility must be completed by the
applicant as follows:
(i) for a multiple dwelling containing one hundred units or less, within ninety days
following the issuance of a permanent certificate of occupancy or a temporary certificate of
occupancy covering all residential space.
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Section 6-05: Application Procedure; Documentation.
Page 6 oF7
(ii) for a multiple dwelling containing more than one hundred units, within one hundred
and eighty days following the issuance of a permanent certificate of occupancy or a
temporary certificate of occupancy covering all residential space.
(iii) where an extension has been granted under paragraph (2)(iii) of this subdivision,
the application must be completed (A) within ninety days of the filing thereof for a multiple
dwelling containing one hundred units or less, or (B) within one hundred and eighty days
of the filing thereof for a multiple dwelling containing more than one hundred units.
(4) Reserved.
(5) In the event that ali the required documents are not timely filed, benefits of the Act
may be revoked in accordance with the procedures established pursuant to chapter thirtynine of this title. An application shall be deemed complete when all items delineated in
6-05 have been submitted, as well as any other documents which the Office may
request.
(6) Notwithstanding the provisions contained in paragraph (3) of this subdivision, the
Office may grant an extension to complete an application for a Final Certificate of Eligibility
for good cause shown.
(e) Issuance of a Certificate of Eligibility. (1) Upon receipt of the application for a
Preliminary Certificate of Eligibility the Department shall determine the initial adjusted
monthly rent and the comparative adjusted monthly rent with respect to rental dwelling
units contained within the multiple dwelling pursuant to 6-04(a) herein. Upon the
Commissioner's determination that a multiple dwelling is entitled to partial tax exemption
hereunder the Department shall issue a Preliminary Certificate of Eligibility to be delivered
by the applicant to the appropriate borough officer of the Property Division of the
Department of Finance together with his, her or its application to the Department of
Finance for partial tax exemption. Such certification shall be conditioned upon the filing
and approval of an application for a Final Certificate of Eligibility as herein provided.
(2) Upon receipt of the application for a Final Certificate of Eligibility and either a
Temporary Certificate of Occupancy for all residential areas in the multiple dwelling or a
Permanent Certificate of Occupancy, and upon the Commissioner's determination that a
multiple dwelling is entitled to partial tax exemption hereunder, the Department shall issue
a Final Certificate of Eligibility to be delivered by the owner to the appropriate borough
officer of the Property Division of the Department of Finance between February 1st and
March 15th, together with his, her or its application to the Department of Finance for
partial tax exemption.
(fl Voluntary withdrawal. Once an application for a Preliminary Certificate of Eligibility or
a Final Certificate of Eligibility has been approved, an owner may withdraw the application
only if (i) all taxes which would have been owed absent the exemption are paid to the City,
with all interest accrued thereon, and (ii) the building for which the application was made is
substantially incomplete or unoccupied by residential tenants.
(g) Declaratory rulings. A declaratory ruling with respect to an analysis of a specific or
hypothetical site, project, fact pattern or document or an interpretation of the applicability
of a specific provision of the 421-a statute or Rules to an actual or hypothetical site,
project, fact pattern or document or any other issue related to eligibility may be given in
the discretion of the Office upon payment of anon-refundable fee in the amount of $1,500
payable at the time such declaratory ruling is requested in writing. In no event shall a
declaratory ruling bind the Office as to the overall eligibility of a project for 421-a benefits.
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SecCion 6-05: Application Procedure; Doc~mlentltioii.
Page 7 of 7
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Section 6-06: The Tax Exemption.
Page I of4
Published on NYC Rules (http://rules.citvofnewVork.us)

Home > Section 6-06: The Tax Exemption.

Titie 28: Department of Housinq Preservation and Development ~,i > Chapter 6: Tax
(a) Taxes on prior assessed valuation not subject to exemption. Taxes on the assessed
value of land receiving benefits under this section, and any improvements thereon, during
the tax year preceding the commencement of construction are not eligible for exemption
under the Act. Tax exemption under the Act is not available until the tax year following the
first year taxable status date following commencement of construction. The Prior
Assessed Valuation remains subject to taxation at the prevailing rate from year to year.
(b) Diminution of tax exemption for excess commercial space. As of July 1, 1975, in the
event the multiple dwelling contains Floor Area of Commercial, Community Facility and/or
Accessory Use Space which exceeds twelve percent (12/o) of the Aggregate Floor Area,
there shall be a diminution of the tax exemption in an amount equal to the ratio of Floor
Area of Commercial, Community Facility and/or Accessory Use Space in excess of twelve
percent (12%) of the Aggregate Floor Area to the Aggregate Area. Where a project
contains a separately assessed parcel such as a residential condominium located above a
separately owned commercial space, the proportionate reduction of tax exemption
resulting from Commercial, Community Facility and Accessory Use Space in excess of
twelve percent(12%) shall be allocated entirely to the non-residential parcel or parcels up
to the point that no exemption exists for any such parcel before applying the reduction in
exemption to the
residential space, provided, however, that such allocation shall only be made with respect
to properties for which a preliminary application for benefits is received after July 26, 1993
or for which a final application is received after such date if no preliminary application was
received.
(c) Exemption during construction. Multiple Dwellings which satisfy all of the
requirements set forth herein and have received a Preliminary Certificate of Eligibility shall
be exempt from real property taxes, other than assessments for local improvements, upon
any increase in assessed valuation over the Prior Assessed Valuation during the
statutorily defined period of construction, or for a period of three years, whichever is less,
provided that taxes shall be paid in each tax year in which full or partial exemption is in
effect on the Prior Assessed Valuation, as defined in 6-01(c) herein.
(d) Exemption after construction. After the first taxable status date immediately following
the completion of construction any increase in assessed valuation over the Prior Assessed
Valuation of eligible multiple dwellings which have received a Final Certificate of Eligibility
shall be exempt from real property taxes, other than assessments for local improvements,
for either ten, fifteen, twenty or twenty-five consecutive tax years, as provided in 6-02(d)
herein, pursuant to the following schedules. In addition, owners must pay full taxes on the
Prior Assessed Valuation, as defined in 6-01)(c) herein.
TEN YEAR EXEMPTION
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First
100%
Second
100%
Third
80%
Fourth
8p%
Fifth
60%
Sixth
60%
Seventh
40%
Eighth
40%
Ninth
20%
Tenth
2p%
Eleventh
po/a
First through Eleventh
100%
Twelfth
80%
Thirteenth
60%
Fourteenth
40%
Fifteenth
20%
Sixteenth
0%
TWENTY YEAR EXEMPTION
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First through Twelfth
100%
Thirteenth and Fourteenth
80%
Fifteenth and Sixteenth
60%
Seventeenth and Eighteenth
40%
Nineteenth and Twentieth
20%
Twenty-first
0%
TWENTY-FIVE YEAR EXEMPTION

Year
First through twenty-first
Percent of Increased
Assessed
Valuation Which is Exempt
100%
Twenty-second
80/a
Twenty-third
60%
Twenty-fourth
40%
Twenty-fifth
20%
Twenty-sixth
0%
(e) Period of gradual diminution of tax exemption. Solely for purposes of

6-04(b) of this chapter, the period of gradual diminution of tax exemption shall
be the following:
(1) For the ten year benefit period, the ten years beginning in the first year of exemption
after completion of construction.
(2) For the fifteen year benefit period, the five years beginning in the eleventh year of
exemption after completion of construction.
(3) For the twenty year benefit period, the eight years beginning in the thirteenth year
after completion of construction.
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Section 6-06: The Tax Exemption.
Page 4 oF4
(4) For the twenty-five year benefit period, the five years beginning in the twenty-first
year of exemption after completion of construction.
1) Then %>
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Section 6-07: Record Keeping; Revocation ofTaY Exemption; Discrimination Prohibited.... Page 1 of 1

Home > Section 6-07: Record Keeping; Revocation of Tax Exemption; Discrimination Prohibited.(Repealed]

Title 28: Department of Housing Preservation and Development m > Chapter 6: Tax
6-07 Record Keeping; Revocation
Prohibited.[Repealed]
of Tax
Exemption; Discrimination
Source URL: http://rules.citvofnewvork.us/content/section-6-07-record-keeping-revocation-tax-exemptiond iscriurination-proh i bited-repealed-0

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Section 6-08: Affordable Housing Construction Requirements.
Page 1 of 13

Home > Section 6-08: Affordable Housing Construction Requirements.

Exemption Pursuant To Section 421-a of the Reai Property Tax Law and Section 11245 Of The Administrative Code Of The City Of New York ~,~
(a) Multiple dwellings affected. Within the geographic exclusion area described in 6-02
(c)(10) herein, the benefits of the Act are available only to multiple dwellings which would
otherwise be eligible for benefits of the Act pursuant to the provisions of these rules and
where construction commenced on or before November 29, 1985, unless such
construction is carried out with substantial governmental assistance, or the owner thereof
complies with the requirements of this section.
(b) Number of affordable units required to be created. A multiple dwelling located in the
geographic exclusion area which would otherwise be eligible pursuant to the provisions of
these rules and not constructed with substantial government assistance may qualify for
benefits under the Act by the method described in either paragraph (1), (2), (3), (4), (5), or
(6) of this 6-08(b). The ratio of the number of affordable units to be created to the number
of units in a multiple dwelling located within the geographic exclusion area seeking the
benefits of the Act are listed below.
Paragraph
Ratio
6-08~b)~3)~i)
1:4
6-08(b)(3)(ii)
1:3.3
6-08~b)~4)~i)
1:5
6-08~b)~5)~i)
1:2.3
6-08~b)~5)~i)
1:2
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Section 6-08: Affordable Housing ConstrucCion Requirements.
Page 2 of 13
(1) Obtaining the certification of the Department that twenty percent(20%) of

the units contained in the multiple dwelling applying for benefits pursuant to the
Act shall be rented to persons of low and moderate income as defined by this
chapter at rents to be determined by the Department pursuant to this section.
(2) Entering into a written agreement with the Department on or before December 31,
1990 to create through new construction on a site or sites meeting the requirements of
6-02(fl, herein, Class A dwelling units to be rented to persons of low and moderate
income as defined by this chapter at rents to be determined by the Department pursuant
to this section numbering at least twenty percent(20%) of the units in the multiple dwelling
located within the geographic exclusion area seeking benefits pursuant to the Act.
(3) Entering into a written agreement with the Department on or before December 31,
1990 to substantially rehabilitate an existing Class A multiple dwelling, the residential
portion of which is vacant, to be rented to persons of low and moderate income as defined
by this chapter at rents to be determined by this section. The number of units to be
substantially rehabilitated shall be in accordance with the following ratios:
(i) twenty-five percent(25%) of the number of units contained in the multiple dwelling or
dwellings located within the geographic exclusion area which will be owned as a rental; or
(ii) thirty percent (30%) of the number of units contained in the multiple dwelling or
dwellings located within the geographic exclusion area which will be owned as a
cooperative or condominium.
(4) Entering into a Written Agreement with the Department on or after January 1, 1991
to create Class A dwelling units through new construction on a site or sites meeting the
requirements of 6-02(fl herein, to convert an existing non-residential building to a Class
A multiple dwelling, or to substantially rehabilitate an existing Class A multiple dwelling
building, the residential portion of which is vacant and has been entirely vacant for not less
than three years, to be rented to:
(i) persons of low income as defined by this chapter at the rents to be determined by the
Department pursuant to this chapter numbering at least twenty percent(20%) of the units
in the multiple dwelling located within the geographic exclusion area seeking benefits
pursuant to the Act.
(ii) persons of moderate income as defined by this chapter at rents to be determined by
this section numbering at least tweny-five percent (25%) of the units in the multiple
dwelling located within the geographic exclusion area seeking benefits pursuant to the
Act.
(iii) homeless persons are referred by the Department or by the Human Resources
Administration, numbering at least sixteen and six-tenths percent (16.6/o) of the units in
the multiple dwelling located within the geographic exclusion area seeking benefits
pursuant to the Act.
(5) Entering into a written agreement with the Department to create through new
construction or substantial rehabilitation Single Room Occupancy units to be rented to
persons of low and moderate income as defined by these rules at rents to be determined
by the Department pursuant to this section. The number of units to be created shall be in
accordance with the following ratios:
(i) forty-two percent (42%) of the number of units contained in the multiple dwelling or
dwellings located within the geographic exclusion area which will be owned as a rental; or
(ii) fifty-one percent (51%) of the number of units contained in the multiple dwelling or
dwellings located within the geographic exclusion area which will be owned as a
cooperative or condominium.
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Section 6-08: Affordable Housing Constriction Requireizients.
Page 3 of 13
(6) if the average size of the residential units contained in the multiple dwelling or
dwellings located within the geographic exclusion area seeking benefits pursuant to the
Act exceeds 1,200 square feet, the Department shall increase the number of affordable
units which must be created pursuant to paragraphs (2), (3), (4) or (5) of 6-08(b) by
multiplying that number of units by the ratio of the average square footage to 1200 square
feet unless the average square footage per unit of the low and moderate income units is
equal to those of the multiple dwelling in the geographic exclusion area and the developer
is the same for the geographic exclusion area units and the affordable units.
(7) If the number of low and moderate income units to be created exceeds 130, two out
of every three units in excess of 130 must be rented to moderate income households as
defined in this chapter, and must number twenty-five percent (25%) of the number of the
units in the multiple dwelling located within the geographic exclusion area seeking the
benefits of the Act; and one out of every three units in excess of 130 must be rented to low
income households as defined in this section, and must number twenty percent (20%) of
the number of units in the multiple dwelling located within the geographic exclusion area
seeking the benefits of this Act.
(c) Location of affordable units. Dwelling units created to satisfy the requirements of this
section must be contained in a multiple dwelling located on a site or sites outside of the
geographic exclusion area, except those affordable units contained in the multiple
dwelling, located within the geographic exclusion area, seeking benefits of the Act. In
addition, where a written agreement was executed on or after January 1, 1991, dwelling
units created to satisfy the requirements of this chapter may also be located on a site or
sites within the geographic exclusion area. Sites outside of the geographic exclusion area
may be either privately owned or owned by the City of New York. The development of City
owned sites must be carried out pursuant to the provisions of 6-08(d).
(d) Development of City-owned sites. (1) An applicant for benefits pursuant to this Act
who wishes to create the required number of low and moderate income units on a vacant
City-owned site may be offered a site or sites pursuant to a method to be established by
the Department. Such method shall make available parcels which will yield the necessary
number of low and moderate income units.
(2) The following procedures apply to the substantial rehabilitation or conversion of Cityowned sites or to new construction on vacant City-owned parcels:
(i) All construction shall be performed by the developer under a license agreement with
the City. At no time will title to the multiple dwelling be conveyed to the developer. All hard
and soft development costs will be borne by the developer.
(ii) After a permanent Certificate of Occupancy has been issued for the multiple dwelling
or dwellings, the Department shall convey title to the multiple dwelling or dwellings to a
qualified not-for-profit organization in whose catchment area the project is located.
Disposition will be for $1 per multiple dwelling through ULURP or UDAAP. If the building is
located in the catchment area for more than one local and/or city-wide qualified not-forprofitgroup, the Department will select the group to whom the building will be sold.
(iii) one hundred percent (100%) of the units in the multiple dwelling or dwellings must
be affordable units.
(iv) ten percent(10%) of the units must be provided for homeless families. Referrals will
be made by HPD/HRA by agreement with the not-for-profit organization, which shall
provide the not-for-profit organization with the ability to screen prospective tenants.
(e) Ownership of affordable units. (1) All affordable units created pursuant to this
section must be owned as rentals, for either 20 years or as long as the building containing
the affordable units receives real estate tax benefits, whichever is longer.
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Section 6-08: Affordable Housing Constr~icCion RequiremenCs.
Page 4 of 13
(2) Buildings containing affordable units created on privately owned sites may be owned
by either afor-profit or a qualified not-for-profit organization.
(i) In the event ownership of the affordable units is retained by afor-profit owner, the
owner of the building receiving the benefits of the Act as a result of satisfaction of the
requirements of this section shall have the ongoing responsibility for insuring the
continuing maintenance and operation of the affordable units in a habitable condition.
Should an owner fail to maintain such units as affordable or in a habitable condition,
benefits of the Act received by the multiple dwelling located in the geographic exclusion
area shall be revoked retroactive to the start of construction. Such revocation shall be
conducted in accordance with the procedures established pursuant to chapter thirty-nine
of this title.
(ii) The developer of the affordable units on privately owned sites may elect to transfer
ownership of the off-site units to a qualified not-for-profit organization is a New York State
corporation experienced in the management of low income housing and approved in
writing by the Department in accordance with the purpose of this section. In that event, the
developer must convey title to a qualified not-for-profit for $1.00 per multiple dwelling. The
not-for-profit owner shall assume the ongoing responsibility for insuring the continuing
maintenance and operation of the affordable units in a habitable condition. Failure of the
not-for-profit to maintain such units as affordable or in a habitable condition shall not result
in a revocation of the tax benefits received by the multiple dwellings located in the
geographic exclusion area.
(iii) A developer creating affordable units on a privately-owned site with the assistance
of the Federal Low Income Housing Credit under 42 of the Internal Revenue Code of
1986 may retain ownership of such units if the developer enters into a management
contract with a qualified managing agent approved in writing by the Department and
conforms to the requirements of this section. Failure of the managing agent to maintain
such units as affordable or in a habitable condition shall not result in a revocation of the
tax benefits received by the multiple dwelling located in the geographic exclusion area.
(A) The management contract must be approved by the Department and shall be for
twenty years or for the length of the real estate tax benefits on the affordable units,
whichever is longer. The developer must obtain the prior written approval of the
Department to substitute another qualified managing agent if, during the term of the
contract, the relationship with the original manager is severed for any reason.
(B) The affordable units must remain as rent stabilized units for twenty years or the
length of the real estate tax benefits on such affordable units, whichever is longer.
Thereafter, upon each vacancy the affordable units may be deregulated according to the
following schedule:
Year After Expiration of

Lower
Maximum % of
Units
Income Housing Plan
that can be at
Market
One
0%
Two
0%
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Section 6-08: Affordable Housing GonsYruction Requirements.
Page 5 of 13
Three
20%
Four
20%
Five
40%
Six
40%
Seven
60%
Eight
60%
Nine
80%
Ten
80%
Eleven
100%
(C) The developer shall enter into an agreement with the Department to fund two
reserve funds. The first shall create sufficient funds for maintenance and operation of the
affordable housing units to the extent to which maintenance and operating expenses
exceed income available from the rent roll, and shall be created in accordance with 6-08
(~of this section. The second covers capital improvement costs and will require the
developer to deposit with the City a Capital Improvement Escrow Fund equal to 1 percent
(1%) of total development costs. The developer will be required to replenish the fund
within sixty (60) days of any drawing down. Interest will accrue to such Fund, which will be
held by the Department. The not-for-profit can draw on this escrow fund upon
authorization by the Department if the developer fails to make necessary capital repairs.
Neither the Department nor the City shall have any liability as Escrow Agent; the
Department's
determination of withdrawal of funds shall be binding on all parties.
(D) If HPD approves anot-for-profit manager, the developer must enter into a purchase
option contract with the not-for-profit for the period of the affordable housing plan. This
option contract shall state that the not-for-profit manager may purchase the affordable
units for $1 if the owner abandons the project. Evidence of abandonment shall include
failure by the developer to meet the maintenance and operating expenses, failure to
replenish the Capital Improvement Escrow Fund, or failure to make necessary repairs.
Further, if during the time of the Federal Low Income Housing Credit, such credit is
revoked and recaptured due to failure by the developer to comply with the applicable
provisions of the Internal Revenue Code and any applicable regulations, then the not-forprofit may exercise the purchase option listed above. If the developer retains ownership
through the end of the affordable housing plan, then the Capital Improvement Escrow
Fund is paid to the
developer upon expiration of the affordable housing plan. If the developer abandons the
development before the end of the expiration of the affordable housing plan, then the
Capital Improvement Escrow Fund is transferred to the not-for-profit. The purchase option
contract may provide for an automatic termination of the contract if HPD approves
termination of the not-for-profit as managing agent. In the absence of anot-for-profit
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Section G08: Affordable Housing Construction Requirements.
Page 6 of 13
manager, HPD may require the owner to enter into a purchase option contract with a notfor-profit acceptable to HPD which would take effect in the event of abandonment.
(fl Special reserve account. The developer of affordable units necessary to qualify a
multiple dwelling within the geographic exclusion area for benefits of the Act, which shall
not be owned by the for-profit developer of such multiple dwelling, must create a special
operating reserve fund. The fund shall be in the amount of $2.25 for each square foot of
affordable housing contained in such new, newly converted or substantially rehabilitated
multiple dwelling or dwellings, including a pro rata share of common space of buildings not
entirely lower income. The fund shall be placed in a blocked account which will be
administered by the Department. This reserve fund is separate from the normal building
reserve fund built into the rent roll that will be accumulated over time and will be available
only on a program-wide basis to cover unanticipated increases in the costs of operating
and maintaining units in general. Once an expenditure from the fund
has been authorized on a programmatic basis, the dollars can be drawn down on a
project-by-project basis. There will be a separate account for each project.
Notwithstanding the above, the reserve fund may also be drawn down, with the approval
of the Department, in the event of unusual occurrences not normally covered by the
normal building reserves.
(g) Construction requirements. (1) Affordable Class A dwelling units created through
new construction must meet the standards set forth in the Departments "Design
Guidelines For HousingNew Construction" and "Standard Specifications" ("Design
Guidelines") (applicant should obtain the most recent edition of the Design Guidelines
from the Department). In addition, such dwelling units must satisfy one of the following
requirements:
(i) Unless the affordable units are created under 6-08(b)(3) or 6-08(b)(5), 50 percent
(50%) of the units must contain two or more bedrooms, and in all cases average square
footage and bedroom mix must be equally distributed with respect to all income levels; or
(ii) For multiple dwellings that commence construction before December 28, 2007,
such affordable units must be located in the same building and must contain the same
average square footage and bedroom mix of all residential units contained in such multiple
dwelling. For multiple dwellings that commence construction on or after December 28,
2007, if the affordable units are created in accordance with 6-08(b)(1) and unless
preempted by federal requirements, (A) all affordable units must have a comparable
number of bedrooms and a unit mix proportional to the market rate units contained in such
multiple dwelling, or (B) at least fifty percent (50%) of the affordable units must have two
or more bedrooms and not more than fifty percent(50%) of the remaining affordable units
can be smaller than one bedroom, or (C) the floor area of the affordable units must be no
less than twenty percent of the total floor area of all dwelling units in such multiple
dwelling.
(2) Affordable Class A dwelling units created through substantial rehabilitation or
conversion must meet the standards set forth in the Department's "Design Guidelines For
HousingSubstantial Rehabilitation" and "Standard Specifications." ("Design Guidelines")
(applicant should obtain the most recent edition of the Design Guidelines from the
Department).
(i) In order for the rehabilitation of a vacant multiple dwelling or the conversion of a
non-residential building to qualify under 6-08(b)(4) of these rules, the scope of work must
include but is not limited to the following:
(A) Beam replacement, to the extent required by the Department
(B) New subflooring
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Section 6-08: Affordable I-Iousing Construction Requirements.
Page 7 of 13
(C) New partition framing

(D) New sheetrock walls and ceilings
(E) New windows
(F) New finish flooring, roofing and insulation
(G) New kitchen cabinets
(H) New baths with ceramic the finishes
(I) New interior and exterior doors (wood and metal)
(J) New finish carpentry
(K) New plumbing
(L) New heating
(M) New electrical
(N) New elevators (where applicable)
(0) Masonry repairs, to the extent required by the Department
(P) New fire escapes, to the extent required by the Department
(Q) Concrete site work, to the extent required by the Department
(ii) At least fifty percent(50%)of the affordable units created pursuant to this paragraph
shall contain two or more bedrooms each, except that the Department may reduce the
bedrooms requirements when, in the sole opinion of the Department, existing structural
elements preclude compliance. if the Department approves a reduction in the number of
bedrooms, the developer will be required to rehabilitate or create through conversion
additional units in a room and bedroom configuration which is acceptable to the
Department, to compensate for the number of bedrooms and square footage which would
have been obtained had the bedroom requirement been met. For the purposes of
computation, the Department will require three studios or two one-bedroom units to be
built for every two-bedroom unit lost. The Department will seek the solution which results
in creating apartments with the highest bedroom count possible, consistent with the
Departments policy of creating
housing which meets the needs of families.
(3) Single Room Occupancy Units created to conform to 6-08(b)(5) must conform to
the Departments Single Room Occupancy Guidelines (applicant should obtain the most
recent edition of the Guidelines from the Department).
(h) Income and occupancy requirements. All units created pursuant to this section must,
at initial occupancy, be affordable to low and moderate income households, as defined in
this chapter. Such units must be rented to households earning no more than four times the
annual rent for the dwelling unit established pursuant to 6-08(i), herein, and must be
rented to households that consist of the minimum number of people as specified below:
Bedroom Size
Minimum Number of People
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Section 6-08: Affordable Housing Construction RequiremenCs.
(i) Initial rents; re-rentals. (1) For projects permitted to assume debt pursuant to 6-08
(0)(2), the Department shall establish initial rents for individual units as provided in
subparagraph (i). For all other projects, initial rents shall be established as provided in
subparagraph (ii).
(i) Units rented to persons of low income are not to exceed 30% of 55% of median
income. Units rented to persons of moderate income are not to exceed the average of
30% of 75/o of median income, provided that no initial annual rent will be established for
any unit in a moderate or mixed income project which exceeds 30% of 95% of annual
median income. The Department shall establish a total rent roll for units created pursuant
to this section based upon program-wide standards for the amount necessary for
maintenance, operation, administration, creation of normal reserve accounts, debt service,
and in consideration of the income level to be served. For the purpose of determining
median income, the following family sizes shall be imputed:
Number of
Bedrooms
Imputed Family
Size
1.0
1.5
3.0
4.5
6.0
(ii) The Department shall establish a total rent roll for units created pursuant to this
section based upon program-wide standards for the amount necessary for maintenance,
operation, administration and the creation of normal reserve accounts, and in
consideration of the income level to be served. For affordable units being constructed
under any of the options in this section, the managing agent may set rents higher than the
allowable rent roll only with the prior written approval of the Department and only as long
as no household is charged more than thirty percent(30%) of their annual income for rent.
Such rents shall be the higher of the rents in effect when the Written Agreement for
Creation of Affordable Housing is entered into or when construction of the affordable
housing units commences. The initial rents for individual units will be determined by the
managing entity, and must be affordable to low and moderate income families, as
defined in this chapter. in no case shall the initial rent of any affordable unit exceed 30%
of 100% of median income.
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(2) Upon initial occupancy, all units created pursuant to this section must be registered
with the New York State Division of Housing and Community Renewal. Such units must
remain rent stabilized for the entire period during which such units receive real estate tax
benefits under any New York State or New York City tax abatement and/or exemption
programs, or for 20 years, whichever is longer.
(3) Future rent increases may not exceed the increases established by the Rent
Guidelines Board.
(4) Upon vacancy, units must be re-rented at no more than the legal stabilized rent. All
units must be rented to families earning no more than four times such annual rent.
(5) Tenants holding a (ease and in occupancy of any unit created pursuant to this
section at the expiration of the rent stabilization period pursuant to paragraph (2) of this
subdivision (i) shall have the right to remain as rent stabilized tenants for the duration of
their occupancy. Once units become vacant after termination of benefits, the owner of
such units shall have the option to de-stabilize such rents.
(6) Tenant incomes and rents must be certified to the Department by the owner of the
multiple dwelling containing the affordable units following initial rent up. Thereafter, the
owner of such multiple dwelling must certify to the Department tenant incomes and rents
for all re-rentals after vacancies on an annual basis, but no later than January 31 for each
calendar year ending December 31.
(7) For the purposes of this subsection (i), "rent" shall mean gross rent, as defined for
the purposes of the federal low income housing tax credit program, and shall include
utilities. In the event that utilities are charged separately, gross rent shall be reduced
accordingly.
Q) Second tier rents. As an additional protection against future insolvency of units
created pursuant to this section and owned by a qualified not-for-profit organization, the
Department will also register with the New York State Division of Housing and Community
Renewal a second level of rents. This second tier of rents will be set by the Department at
or very close to the maximum rents affordable to moderate income families as defined in
this chapter. Implementing the second tier of rents for any unit will be allowed on vacancy
only with the Department's written permission. The Department will give its permission
after a finding that the project has been efficiently managed and the need for second tier
rents are a result of factors outside the control of the not-for-profit owner, but in any event,
in the following cases only:
(1) When the projects financial feasibility is threatened by a significant unanticipated
rise in maintenance and operating expenses that cannot be covered by the rent roll and
available reserves; or
(2) When a significant, unanticipated expense occurs in the building that cannot be
covered by the rent roll and available reserves; or
(3) When rents rise faster than the income of the tenants who are paying 30 percent
(30%) of their income in rent and where the increased rents) on the vacant units) are
used to maintain the rents for existing tenants at 30 percent(30%)of their income.
(k) Time requirements; filing fees. (1) The written agreement with the Department for
the creation of affordable units pursuant to this section must be entered into prior to the
commencement of construction of such affordable units.
(2) Such written agreement may be entered into after the commencement of
construction of the multiple dwelling or dwellings located in the geographic exclusion area
seeking benefits of this Act.
(3) Any request for a written agreement pursuant to 6-08(1) herein shall be
accompanied by a filing fee of $100 for each proposed unit of affordable housing, which
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Section 6-08: Affordable Housing Constriction Requirements.
Page 10 of 13
fee shall be non-refundable but shall be applied to the filing fee for the tax benefits for the
affordable units, as established by 6-05(c) herein and 5-05(fl of Title 28 of the Rules of
the City of New York governing tax exemption and abatement pursuant to 11-243 of the
Administrative Code (J-51).
(I) Request for written agreement. The following shall be required to be submitted to the
Department with any request for a written agreement. Once approved, ail documents will
be incorporated into the agreement, the complete package to be referred to as The 421-a
Written Agreement for Creation of Affordable Housing:
(1) A cover sheet identifying:
(i) the applicant
(ii) if a corporate entity, the principals in that entity
(iii) the location of the affordable housing units
(iv) the location, if known, of the multiple dwelling located within the geographic
exclusion area seeking benefits of the Act.
(2) A statement that the units are intended to entitle a project to receive benefits of the
Act and that such units will be rented in compliance with all provisions of this chapter.
(3) Proof of control of the site of the affordable units including:
(i) if privately owned, deed or contract of sale; or
(ii) if a city-owned building is to be rehabilitated or converted,
(A) proof of selection of site; and
(B) endorsed license agreement with the City to permit the rehabilitation or conversion.
(4) Preliminary building plans as approved by the Department, indicating a site plan of
the low and moderate income building, total size of the building and the size and
configuration of the dwelling units to be contained in the building.
(5) A scope of work indicating the extent of rehabilitation or scope of new construction
or conversion.
(6) Identification of the owner of the affordable units created on privately owned sites:
(i) if afor-profit owner, the name of the ownership entity and principals.
(ii) snot-for-profit owner, the name of not-for-profit and evidence of pre-qualification.
(7) A marketing plan for tenant selection and apartment rental. The marketing plan shall
identify specific organizations or institutions, such as Community Boards, not-for-profit
organizations, senior citizen centers, religious institutions, etc., which shall advertise the
availability of the affordable units and must be in accordance with the Departments
marketing guidelines, which can be obtained from the Department. All marketing efforts
must meet equal opportunity and fair housing guidelines.
(8) A statement that a rental multiple dwelling located within the geographic exclusion
area which qualified for benefits under the Act pursuant to 6-08(b)(3), (4) or (6) of this
section will not be converted to cooperative or condominium ownership during the period
of partial tax exemption. Conversion may be permitted by the Department subsequent to
the expiration of the period of partial tax exemption where the affordable units are owned
by afor-profit organization only if the conversion sponsor:
(i) enters into a Written Agreement with the Department to provide for the maintenance
and operation of the affordable units for the remainder of the 20 years or the period during
which such units receive tax benefits under any New York State or New York City tax
abatement or exemption program, whichever is longer, or
(ii) transfers the ownership of the affordable units to anot-for-profit organization
qualified by the Department.
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Section 6-08: Affordable Housing Construction Requirements.
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(9) Where affordable units are created pursuant to 6-08(b)(1) herein, a statement that
such units will not be converted to condominium or cooperative ownership for 20 years, or
as long as the buildings containing the affordable units receive tax benefits under any tax
abatement or tax exemption program from the State of New York or the City of New York,
whichever is longer.
(10) Where the affordable units will be owned by for-profit organization, except those
units meeting the requirments of 6-08, a statement that the recipient of the benefits of
this Act will be responsible for the maintenance and operation of the units in a habitable
condition. If the units will be owned by snot-for-profit organization as permitted under
6-08(e)(2)(iii) of this chapter, the developer shall be required to fund a reserve fund in the
amount of $2.25 for each square foot of affordable housing provided, in the same manner
as that described in 6-08(fl, and a Capital Improvement Escrow Fund in accordance with
(11) For units to be owned by snot-for-profit organization, an agreement to fund a
blocked reserve account, in an amount specified by this section and administered by the
Department, or to create such a fund should the units owned by afor-profit organization
be transferred to anot-for-profit in the future.
(12) An agreement to submit to the Department, within five days of their execution or
issuance by another City agency:
(i) a construction contract for the creation of the Iower income units between the
applicant and the entity chosen to carry out the construction;
(ii) final approved plans by the Department of Buildings;
(iii) the altered building application and alteration permit for substantial rehabilitations
and conversions or the new building permit for new construction;
(iv) a temporary certificate of occupancy for the entire residential portion of the building
or the permanent certificate of occupancy.
(13) An agreement that changes or amendments made to any document included in
this plan must obtain the prior approval of the Department.
(14) A filing fee in the amount of $100 for each proposed unit of affordable housing.
(15) A financial statement describing proposed sources and uses of all funds for the
project, as approved by the Department.
(m) Certification; negotiable certificates. (1) After the Department determines that a
request for Written Agreement is complete and satisfies all requirements of this section,
the Department shall approve the request for a Written Agreement. The Written
Agreement will provide for the granting of benefits of this Act for a specified number of
dwelling units contained in a multiple dwelling located within the exclusion area. Such
Written Agreement must be submitted to the Department with the application for benefits
of the Act for the multiple dwelling located in the geographic exclusion area. In the event
benefits of the Act are granted based upon a Written Agreement, failure to satisfy the
conditions contained in such Written Agreement will result in a revocation of any benefits
received by the multiple dwelling located in the exclusion area.
(2) Upon the submission to the Department of a permanent Certificate of Occupancy
for, or the temporary Certificate of Occupancy for the entire residential portion of, the
building containing the affordable units created pursuant to this section, the Department
shall conduct a site inspection. Following that site inspection and upon satisfaction that all
terms of the Written Agreement and of this section have been met, the Department shall
issue the Negotiable Certificates representing the completion of the affordable units.
(3) Such Negotiable Certificate shall be required prior to the issuance of the Final
Certificate of Eligibility for a multiple dwelling located within the geographic exclusion area
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Section 6-08: Affordable Ho~ising Construction Requirements.
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pursuant to 6-05(e) of this chapter, unless at the sole option of the Department, pursuant
to 6-05(d)(I)(vi) of this chapter, a Letter of Credit has been submitted to the Department.
(4) Such Negotiable Certificate shall provide that a specified number of dwelling units
containing up to an average size of twelve hundred square feet to be constructed in the
geographic exclusion area shall be eligible to receive benefits of the Act.
(5) In the event that the benefits of the Act are to be transferred to more than one
building located within the geographic exclusion area, and at the written request of the
applicant, the Negotiable Certificate shall be "drawn down" by the amount required for
each transfer, and a new Negotiable Certificate, endorsed by the applicant, shall be
issued for each transfer. Application for the benefits of the Act must be accompanied by
the original Negotiable Certificate and a copy of the Certificate of Completion.
(n) Governmental assistance to affordable units. (1) Affordable units created pursuant
to 6-08(b) herein may not be the recipient of any other as-of-right or discretionary
government benefit, consideration or assistance, excluding tax exempt financing, federal
low income housing tax credits, and real estate tax benefits enumerated in paragraph (3)
of this subdivision (n).
(2) Affordable units created to satisfy the low and moderate income housing
requirements of any other governmental benefit, consideration or assistance except tax
exempt financing, federal low income housing tax credits, and real estate tax benefits
enumerated in paragraph (3) of this subdivision (n) shall not be considered as being
created to satisfy the requirements of this section. Units created pursuant to 6-08(b)(i)
herein shall not also qualify as affordable units under this section.
(3) in order to qualify a multiple dwelling located within the geographic exclusion area
for benefits under the Act, affordable units created by rehabilitation or conversion must
receive a Certificate of Eligibility for the benefits of 11-243 or 11-244 of the Administrative
Code or 421-g of the Real Property Tax Law, and affordable units created by new
construction must receive a Certificate of Eligibility for the benefits of the Act, unless such
units obtain tax exemption pursuant to 420-a or 420-b of the Real Property Tax Law,
696 of the General Municipal Law, or 577 of the Private Housing Finance Law.
(4) Affordable units created pursuant to 6-08(b)(2) through 6-08(b)(5) of these rules
may not be used, or have been used, to satisfy a requirement to create low or moderate
income housing imposed by a federal, state, or local agency or instrumentality or pursuant
to a court or administrative order or decree (unless such requirement is imposed solely as
a condition to receiving bond financing or federal low income housing tax credits for the
property containing the affordable units).
(5) Notwithstanding anything to the contrary contained in this subdivision, affordable
units created to satisfy the requirements of the inclusionary housing program established
pursuant to the New York City Zoning Resolution may be used to qualify a multiple
dwelling in the geographic exclusion area for the benefits of the Act if at least twenty
percent(20%) of the units contained in the multiple dwelling applying for such benefits are
affordable to persons of low and moderate income as defined by this chapter.
(o) Mortgage and debt limitations. (1) In the case of a project which qualifies for tax
benefits pursuant to 6-08(b)(1), any lien or mortgage encumbering one or more low and
moderate income units in such project shall expressly provide that it is subject and
subordinate to the Written Agreement imposing the restrictions required by this 6-08,
commencing upon issuance of a Final Certificate of Eligibility for such tax benefits.
(2) Projects undertaken pursuant to either 6-OS(b)(4)(i), 6-08(b)(4)(ii), or 6-08(b)(4)
(iii) may be encumbered with a lien or mortgage, provided the amount of debt placed on
the project permits rents for such units to comply with the provisions of 6-08(i) and such
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lien or mortgage expressly provides that it is subject and subordinate to the Written
Agreement.
1) Then %>
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Section 6-U9: New Eligibility Requirements.
Page 1 of 8
Published on NYC Rules (http://rules.citvofnewyork.us)

Home > Section 6-09: New Eligibility Requirements.

Title 28: Department of Housing Preservation and Development ni > Chapter 6: Tax
(a) Definitions. For purposes of this section 6-09, the following terms shall have the
following meanings:
Affordability requirement. "Affordability requirement' shall mean that not less than
twenty percent of the onsite units in such multiple dwelling are GEA 60% AMI units or
GEA SGA units.
Applicable deadline. "Applicable deadline" shall mean, unless otherwise exempted
pursuant to the Act, (a) with respect to a multiple dwelling within the geographic exclusion
area, June 30, 2008, and (b) with respect to the limitations on benefits imposed pursuant
to paragraph five of subdivision b of this section, December 27, 2007.
Commence."Commence" shall mean:
(a)(1) the later to occur of (i) the date upon which a new metal or concrete structure to
be incorporated into the multiple dwelling that shall perform a load bearing function for
such multiple dwelling is installed; or (ii) the date upon which a building or alteration permit
for the multiple dwelling (based upon architectural and structural plans approved by the
Department of Buildings) was issued by such department; or
(2) if a project includes new residential construction and the concurrent conversion,
alteration or improvement of apre-existing building or structure, the later to occur of (i) the
date upon which the actual construction of the conversion, alteration or improvement of
the pre-existing building or structure begins; or (ii) the date upon which an alteration
permit for the multiple dwelling (based upon architectural and structural plans approved by
the Department of Buildings) on which the actual construction of the conversion, alteration
or improvement takes place, was issued by such department;
(b) provided, however, that (1) with respect to subparagraph (1) of paragraph (a), if
piles or caissons are required, "commence" shall mean the later to occur of (i) the date
upon which at least one fully driven pile or caisson is installed; or (ii) the date upon which
a building or alteration permit for the multiple dwelling (based upon architectural and
structural plans approved by the Department of Buildings) was issued by such
department; and
(2) with respect to both subparagraphs (1) and (2) of paragraph (a):
(i) such installation of a new metal or concrete structure or such beginning of the actual
construction of the conversion, alteration or improvement of the pre-existing building or
structure, respectively, and such issuance of a building or alteration permit, must both
have occurred in order for the multiple dwelling to meet this definition of "commence"; and
(ii) for multibuilding projects, each multiple dwelling in such multibuilding project shall be
deemed to "commence"(A) with respect to subparagraph (1) of paragraph (a), on the later
to occur of (1) the date upon which a new metal or concrete structure to be incorporated
into the first multiple dwelling in such multibuiiding project that shall perform a load bearing
function for such multiple dwelling is installed; or (2) the date upon which a building or
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Section 6-09: New Eligibility Requirements.
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alteration permit for the first multiple dwelling in such multibuilding project (based upon
architectural and structural plans approved by the Department of Buildings) was issued by
such department, provided that all of the multiple dwellings in such multibuilding project
have been issued by the Department of Buildings a building or alteration permit (based
upon architectural and structural plans approved by such department) on or before the
applicable deadline, and the periods of construction and final
real property tax exemption benefits granted pursuant to the Act shall commence
simultaneously for all of the multiple dwellings in such multibuilding project; and (B) with
respect to subparagraph (2) of paragraph (a), on the later to occur of (1) the date upon
which the actual construction of the conversion, alteration or improvement of the first preexisting building or structure in such multibuilding project begins; or (2) the date upon
which an alteration permit for the first multiple dwelling in such multibuilding project (based
upon architectural and structural plans approved by the Department of Buildings) on which
the actual construction of the conversion, alteration or improvement takes place, was
issued by such department, provided that all of the multiple dwellings in such multibuilding
project have been issued by the Department of Buildings a building or alteration permit
(based upon architectural and structural plans approved by such department) on or before
the applicable deadline, and the
periods of construction and final real property tax exemption benefits granted pursuant to
the Act shall commence simultaneously for all of the multiple dwellings in such
multibuilding project; and
(iii) if the architectural and structural plans approved by the Department of Buildings in
conjunction with the issuance of the first such building or alteration permit are thereafter
amended to provide for more than a thirty-five percent (35%) increase (the "35%
standard") in the floor area of such multiple dwelling as defined pursuant to the Act, the
construction of such multiple dwelling shall be deemed to have commenced on the date
upon which such amended plans are filed with such department, provided, however, that,
in the case of a multibuilding project that meets the requirements of clause (ii) of this
paragraph (2), any such increase in the floor area may be distributed amongst the multiple
dwellings in such multibuiiding project in any manner permitted under the Zoning
Resolution and the 35% standard may be applied to such multibuilding project on an
aggregate rather than a single building basis; and
(iv) the construction of any such multiple dwelling also must be completed without
undue delay. For purposes of this definition of "commence,":
(1) for any application for a Preliminary Certificate of Eligibility that is filed no later than
three hundred sixty-five days from the effective date of this amendment, or that is filed
with respect to a project that was the subject of mortgage foreclosure proceedings or other
lien enforcement litigation by a lender on or before three hundred sixty-five days from the
effective date of this amendment: (A) if a project consists of one multiple dwelling and
such multiple dwelling is completed within seventy-two (72) months from the later to occur
of(1) the date of the installation of a new metal or concrete structure or of the beginning of
the actual construction of the conversion, alteration or improvement of the pre-existing
building or structure, respectively, (2) the date upon which a building or alteration permit
for the multiple dwelling (based upon architectural and structural plans approved by the
Department of Buildings) was issued by such department, or (3)
December 28, 2007, such multiple dwelling shall be deemed to have been completed
without undue delay, and (B) if a project meets the requirements of clause (ii) of this
paragraph (2), if all of the multiple dwellings in such multibuilding project are completed
within seventy-two (72) months from the later to occur of(1) the date of the installation of
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a new metal or concrete structure for the first multiple dwelling in such multibuilding
project or of the beginning of the actual construction of the conversion, alteration or
improvement of the first pre-existing building or structure in such multibuilding project,
respectively, (2) the date upon which a building or alteration permit for the first multiple
dwelling (based upon architectural and structural plans approved by the Department of
Buildings) was issued by such department, or (3) December 28, 2007, all of the multiple
dwellings in such multibuildi~g project shall be deemed to have been completed without
undue delay. Where construction is not
completed within such seventy-two (72) month period and an architect or professional
engineer has certified that such construction was completed without undue delay, the
Department will not merely rely on such certification. In order to determine whether such
construction was, in fact, completed without undue delay, the Department will consider the
following factors: (i) the extraordinary size and/or complexity of the construction project; (ii)
strikes or other unavoidable labor stoppages of substantial duration and severity; (iii)
industry-wide shortages of construction materials of substantial duration and severity; (iv)
substantial damage to completed construction work caused by fire or other casualty, and
(v) mortgage foreclosure proceedings or other lies enforcement litigation by a lender with
regard to such project. in each case, the Department will consider such factors and
determine whether construction could reasonably have been completed in a materially
shorter period of time.
(2) for any application for a Preliminary Certificate of Eligibility that is filed more than
three hundred sixty-five days after the effective date of this amendment, and that is not
filed with respect to a project that was the subject of mortgage foreclosure proceedings or
other lien enforcement litigation by a lender on or before three hundred sixty-five days
from the effective date of this amendment:(A) if a project consists of one multiple dwelling
and such multiple dwelling is completed within thirty-six (36) months from the later to
occur of (1) the date of the installation of a new metal or concrete structure or of the
beginning of the actual construction of the conversion, alteration or improvement of the
pre-existing building or structure, respectively, (2) the date upon which a building or
alteration permit for the multiple dwelling (based upon architectural and structural plans
approved by the Department of Buildings) was issued by such department, or
(3) December 28, 2007, such multiple dwelling shall be deemed to have been completed
without undue delay, and (B) if a project meets the requirements of clause (ii) of this
paragraph (2), if all of the multiple dwellings in such multibuilding project are completed
within thirty-six (36) months from the later to occur of (1) the date of the installation of a
new metal or concrete structure for the first multiple dwelling in such multibuilding project
or of the beginning of the actual construction of the conversion, alteration or improvement
of the first pre-existing building or structure in such multibuilding project, respectively, (2)
the date upon which a building or alteration permit for the first multiple dwelling (based
upon architectural and structural plans approved by the Department of Buildings) was
issued by such department, or (3) December 28, 2007, all of the multiple dwellings in such
multibuilding project shall be deemed to have been completed without undue delay.
(3) Notwithstanding anything to the contrary contained herein, if a multiple dwelling
meets the affordability requirement or is located outside of the GEA, such multiple
dwelling shall be deemed to have been completed without undue delay.
(c) Where it is determined in accordance with this definition of "commence" that a
multiple dwelling commenced construction on or after December 28, 2007 with respect to
paragraph five of subdivision (b) of this section or July 1, 2008 with respect to paragraphs
one, three or six of subdivision (b) of this section, respectively, this definition of
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"commence" shall supersede the definition of "commencement of construction" contained

in 6-01 of this chapter.
Common charges or carrying charges. "Common charges or carrying charges" shall
mean the estimated amounts contained in the offering plan accepted by the office of the
Attorney General of the State of New York for filing.
Geographic exclusion area or GEA. "Geographic exclusion area" or "GEA" shall
mean the boundaries for any geographic exclusion areas set forth in 421-a of the Real
Property Tax Law and 11-245 of the Administrative Code that are effective on or after
July 1, 2008.
GEA 60% limit. "GEA 60% limit" shall mean (A) for a multiple dwelling owned and
operated as a rental, (1) incomes at the time of initial occupancy that do not exceed sixty
percent of the area median incomes adjusted for family size, and (2) rents at the time of
initial occupancy that do not exceed thirty percent of sixty percent of the area median
incomes adjusted for family size, minus the amount of any applicable utility allowance, and
(B) for a multiple dwelling owned and operated as a condominium or cooperative
development by individual condominium unit owners or shareholders, (1) incomes at the
time of initial occupancy that do not exceed sixty percent of the area median incomes
adjusted for family size, and (2) sales prices at the time of initial sales that result in
mortgage payments, including both principal and interest calculated at the prevailing rate
and assuming that the mortgage constitutes 90% of the purchase price, and common
charges or carrying charges, respectively, that collectively do not exceed thirty percent of
sixty percent of the area median incomes adjusted for family size.
GEA SGA limit. "GEA SGA IimiY' shall mean (A) for a multiple dwelling owned and
operated as a rental, (1) incomes at the time of initial occupancy that do not exceed one
hundred twenty percent of the area median incomes adjusted for family size and, where
such a multiple dwelling contains more than twenty-five units, incomes at the time of initial
occupancy that do not exceed an average of ninety percent of the area median incomes
adjusted for family size, and (2) rents at the time of initial occupancy that do not exceed
thirty percent of one hundred twenty percent of the area median incomes adjusted for
family size, minus the amount of any applicable utility allowance, and, where such a
multiple dwelling contains more than twenty-five units, rents at the time of initial
occupancy that do not exceed an average of thirty percent of ninety percent of the area
median incomes adjusted for family size, minus the amount of any applicable utility
allowance, or (B) for a multiple dwelling owned and operated as a condominium or
cooperative development by individual condominium unit owners or shareholders, (1)
incomes at the time of initial occupancy that do not exceed one hundred twenty-five
percent of the area median incomes adjusted for family size, and (2) sales prices at the
time of initial sales that result in mortgage payments, including both principal and interest
calculated at the prevailing rate and assuming that the mortgage constitutes 90% of the
purchase price, and common charges or carrying charges, respectively, that collectively
do not exceed thirty percent of one hundred twenty-five percent of the area median
incomes adjusted for family size.
GEA 60% AMI unit."G EA 60% AMI unit' shall mean (A) if a multiple dwelling is owned
and operated as a rental, a unit that, upon its initial rental and upon all subsequent rentals
of the unit after a vacancy, complies with the GEA 60% limit, or (B) if a multiple dwelling is
owned and operated as a condominium or cooperative development by individual
condominium unit owners or shareholders, a unit that, upon the initial sale of such unit,
complies with the GEA 60% limit.
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GEA SGA unit. "GEA SGA unit' shall mean (A) if a multiple dwelling is owned and
operated as a rental, a unit that, upon its initial rental and upon ail subsequent rentals of
the unit after a vacancy, complies with the GEA SGA limit, or (B) if a multiple dwelling is
owned and operated as a condominium or cooperative development by individual
condominium unit owners or shareholders, a unit that, upon the initial sale of such unit,
complies with the GEA SGA limit.
Multibuilding project. "Multibuilding project' shall mean a project that consists of more
than one multiple dwelling where the multiple dwellings are located inside the GEA, do not
meet the affordability requirement, are contiguous and are under common ownership. For
purposes of this definition of "multibuilding project', multiple dwellings shall be deemed to
be (a) "contiguous" if such multiple dwellings are on tax lots that (1) are adjacent for at
least ten linear feet, or, (2) but for the intervention of streets or street intersections, would
be adjacent for at least ten linear feet and front the same street or intersection, and (b)
"under common ownership" if at the date of commencement of construction, each of the
multiple dwellings in such multibuilding project is owned and/or controlled directly or
indirectly by the same individual or entity.
Onsite. "Onsite" shall mean situated within a building or buildings on the same zoning
lot, or, if only a portion of such zoning lot is being granted benefits pursuant to the Act,
situated within a building or buildings on such portion of such zoning lot; provided,
however, that (1) each of the buildings on such zoning lot or portion thereof is part of the
same application for benefits pursuant to the Act, (2) the periods of construction and final
real property tax exemption benefits granted pursuant to the Act for all of the buildings on
such zoning lot or portion thereof being granted benefits pursuant to the Act shall
commence simultaneously, and (3) no final real property tax exemption benefits shall be
granted pursuant to the Act for any of the buildings on such zoning lot or any portion
thereof being granted benefits pursuant to the Act until receipt of a certificate of
occupancy or a temporary certificate of occupancy for the
residential portions of the building or buildings on such zoning lot containing the GEA 60%
AMI units and/or the GEA SGA units.
Party in interest. "Party in interest' shall mean any person or entity holding an
ownership, ground lease, mortgage, or other security interest, or holding any other interest
which may be converted to such interest, in the real property containing the multiple
dwelling receiving the benefits pursuant to the Act.
Prevailing rate. "Prevailing rate" shall mean the single family mortgage rate fora thirtyyear fixed rate loan established by the Federal Home Loan Mortgage Association and the
Federal National Mortgage Association that is either (1) for purposes of the application for
a Preliminary Certificate of Eligibility, quoted for the month in which the construction of
such multiple dwelling commences, or (2) for purposes of the application for a Final
Certificate of Eligibility, quoted for the month in which the first certificate of occupancy or
temporary certificate of occupancy for the first unit in such multiple dwelling that is owned
and operated as a condominium or cooperative development by individual condominium
unit owners or shareholders, is issued.
Utility allowance. "Utility allowance" shall mean an allowance set forth by the
Department for the payment of utilities where the tenant of a GEA 60% AMI unit or a GEA
SGA unit is required to pay all or a portion of the utility costs with respect to such unit in
addition to any payments of rent.
(b) Multiple Dwellings Affected. (1) Unless otherwise exempted pursuant to the Act, a
multiple dwelling within the geographic exclusion area that commences construction on or
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after July 1, 2008 and which would otherwise be eligible for the benefits of the Act, is only
eligible if:
(i) not less than twenty percent of the onsite units in such multiple dwelling are GEA
60% AMI units; or
(ii) the construction of such multiple dwelling is carried out with substantial
governmental assistance provided pursuant to a program for the development of
affordable housing and not less than twenty percent of the onsite units in such multiple
dwelling are GEA SGA units; or
(iii) such multiple dwelling has purchased negotiable certificates in order to entitle it to
the benefits of the Act for a specified number of units in the geographic exclusion area;
provided, however, that such negotiable certificates were generated by a Written
Agreement with the Department entered into prior to December 28, 2007 pursuant to
6-08(b)(4) of this chapter.
(2) For thirty-five years from the completion of construction, all GEA 60% AMI units and
GEA SGA units in multiple dwellings must (i) if they are owned and operated as rentals,
remain rent stabilized and allow tenants holding a lease and in occupancy at the
expiration of such thirty-five year period to remain as rent stabilized tenants for the
duration of their occupancy, (ii) comply with the affordability requirement, and (iii) upon the
renewal of leases or at any time during the term of the lease, be rented to existing tenants
for the lesser of(A) the rents permitted under the Rent Stabilization Law of 1969 and the
Emergency Tenant Protection Act of 1974 and all regulations promulgated in connection
thereto (collectively, "Rent Stabilization Laws"), or (B) 30% of the applicable income limit
for such GEA 60% AMI unit or GEA SGA unit, respectively, minus the amount of any
applicable utility allowance, provided, however, that no increase
authorized pursuant to 28 RCNY 6-04(b) of this chapter and no exemption or exclusion
from any requirement of the Rent Stabilization Laws, including, but not limited to, any
exemption or exclusion from the rent limits, renewal lease requirements, registration
requirements, or other provisions of the Rent Stabilization Laws due to (a) the vacancy of
a unit where the rent exceeds a prescribed maximum amount, (b) the fact that tenant
income and/or unit rent exceed prescribed maximum amounts, (c) the nature of the
tenant, or (d) any other factor, may be applied to any such GEA 60% AMI unit or GEA
SGA unit during such thirty-five year period. Furthermore, the lease for each such unit
owned and operated as a rental and for the renewal thereof must contain a notice in at
least twelve (12) point type stating the approximate date on which such thirty-five year
period is expected to expire and informing such tenant that after such thirty-five year
period, (i) the unit will no longer have to comply with the
affordability requirement and (ii) if the tenant is holding a lease and in occupancy at the
expiration of such thirty-five year period, such tenant shall have the right to remain as a
rent stabilized tenant for the duration of such tenants occupancy. The rent stabilization
and lease rider requirements contained in 6-02(g) of this chapter shall continue to apply
to the multiple dwellings owned and operated as a rental containing such GEA 60% AMI
units or GEA SGA units to the extent that they do not conflict with this paragraph.
(3) Unless otherwise exempted pursuant to the Act, the owner of a multiple dwelling
that is located within the geographic exclusion area and that commences construction on
or after July 1, 2008:
(i) when filing an application for a Preliminary Certificate of Eligibility pursuant to 6-05
(b) of this chapter, must submit (A) written certification that it meets the affordability
requirement, or (B) if such multiple dwelling is qualifying for benefits pursuant to
subparagraph (iii) of paragraph (2) of this subdivision, and subject to the provisions
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contained in 6-08(m)(1) of this chapter, submit either (a) a copy of a Written Agreement
with the Department for the construction or substantial rehabilitation of housing units
affordable to persons of low and moderate income on another site that meet the
requirements of 6-08 of this chapter, or (b) the negotiable certificates issued pursuant to
6-08 of this chapter, evidencing the bearer's entitlement to the benefits of the Act for the
units for which the owner is seeking tax benefits.
(ii) when filing an application for a Preliminary Certificate of Eligibility pursuant to 6-05
(b) of this chapter for a multiple dwelling that contains GEA 60% AMI units or GEA SGA
units, submit evidence satisfactory to the Office that a restrictive declaration in a form
satisfactory to the Office (A) has been executed by all parties in interest, (B) has been
recorded against the real property containing the multiple dwelling receiving benefits
pursuant to the Act, and (C) provides that the GEA 60% AMI units or the GEA SGA units
in such building must for thirty-five years from the completion of construction (1) comply
with the affordability requirement, and (2) if such multiple dwelling is owned and operated
as a rental, remain rent stabilized and allow tenants holding a lease and in occupancy at
the expiration of such thirty-five year period to remain as rent stabilized tenants for the
duration of their occupancy.
(iii) when filing an application for a Final Certificate of Eligibility pursuant to 6-05(d) of
this chapter for a multiple dwelling that contains GEA 60% AMI units or GEA SGA units
and unless the dwelling units in such multiple dwelling are marketed under the
Departments monitoring, submit an affidavit from the owner containing such information
as the Department may require to certify that such units will be marketed pursuant to a fair
and open process in accordance with the Departments marketing guidelines, and that
either (A) residents of the community board where the multiple dwelling for which benefits
are being granted pursuant to the Act is located shall, upon initial occupancy, have priority
for the purchase or rental of 50% of the GEA 60% AMI units or 50% of the GEA SGA
units, respectively, or (B) such multiple dwelling does not have to comply with such
community priority requirement because the community priority requirement is preempted
by federal requirements that such owner has specified in such affidavit.
(iv) in addition to the record keeping requirements contained in 6-07 of this chapter,
must retain all books, records and documents relating to the GEA 60% AMI units or GEA
SGA units, including an annual schedule of rents for each such rental unit for thirty-five
years from the completion of construction of such multiple dwelling, and a schedule of the
initial sales prices for each such home ownership unit for six years from the completion of
construction of such multiple dwelling, and make them available for inspection by the
Department.
(4) Reserved.
(5) Unless otherwise exempted pursuant to the Act, any multiple dwelling that
commences construction on or after December 28, 2007 and which would otherwise be
eligible for the benefits of the Act, is only eligible if:
(i) such multiple dwelling contains at least four dwelling units as set forth in the
certificate of occupancy, unless the construction of such multiple dwelling is carried out
with substantial governmental assistance provided pursuant to a program for the
development of affordable housing; and
(ii) if such new multiple dwelling is situated in (a) a Neighborhood Preservation
Program Area as determined by the Department as of June 1, 1985, or (b) a
Neighborhood Preservation Area as determined by the New York City Planning
Commission as of June 1, 1985, or (c) an area that was eligible for mortgage insurance
provided by the Rehabilitation Mortgage Insurance Corporation (REMIC) as of May 1,
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1992, or (d) an area receiving funding for a neighborhood preservation project pursuant to
the Neighborhood Reinvestment Corporation Act (42 U.S.C. Sections 8101 et seq.) as of
June 1, 1985, such new multiple dwelling shall no longer be eligible for the benefits
available pursuant to 421-a(2)(a)(iii) of the Act unless either (a) the construction is
carried out with substantial governmental assistance provided pursuant to a program for
the development of affordable housing, or (b) the Department has imposed a requirement
or has certified that at least
twenty percent of the onsite units in such multiple dwelling are affordable to and occupied
by or affordable to and available for occupancy by i~dividuais or families whose incomes
at the time of initial occupancy do not exceed eighty percent of the area median incomes
adjusted for family size, provided, however, that of such units, no more than a number
equal to five percent of the number of units which commenced construction in buildings
receiving tax benefits pursuant to the Act in the previous calendar year shall be affordable
to and occupied by or affordable to and available for occupancy by individuals or families
whose incomes at the time of initial occupancy are between sixty percent and eighty
percent of the area median incomes adjusted for family size.
(6) Unless otherwise exempted pursuant to the Act, any multiple dwelling that
commences construction on or after July 1, 2008 and which would otherwise be eligible
for benefits pursuant to the Act, shall be subject to the provisions of subdivision 9 of the
Act imposing an exemption cap on such multiple dwelling.
(7) Eligible multiple dwellings that meet the requirements of paragraphs (1) or (5) (ii) of
this subdivision (b) may receive a ten, fifteen, twenty or twenty-five year tax exemption, as
described herein. In order to qualify for such benefits, the multiple dwelling must meet the
eligibility requirements described below for each level of exemption.
(i) Only the ten year exemption is available to multiple dwellings located in Manhattan
on tax lots now existing or hereafter created south of or adjacent to either side of 110th
street if such multiple dwelling meets the requirements of subparagraph (iii) of paragraph
(1) of this subdivision (b).
(ii) Only the fifteen year exemption is available to multiple dwellings located in the
boroughs of the Bronx, Brooklyn, Queens, Staten Island and in Manhattan north of 110th
Street if such multiple dwelling meets the requirements of subparagraph (iii) of paragraph
(iii) The twenty year exemption is available in the borough of Manhattan for buildings
on tax lots now existing or hereafter created south of or adjacent to either side of one
hundred tenth street only if such multiple dwelling meets the requirements of
subparagraph (i) or (ii) of paragraph (1) of this subdivision (b) or the requirements of
subparagraph (ii) of paragraph (5) of this subdivision (b).
(iv) The twenty-five year exemption is available to multiple dwellings located in the
boroughs of the Bronx, Brooklyn, Queens, Staten Island or Manhattan north of 110th
Street only if such multiple dwelling meets the requirements of subparagraph (i) or (ii) of
paragraph (1) of this subdivision (b) or the requirements of subparagraph (ii) of paragraph
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Section 6-10: Applicability of Certain Provisions.
Page 1 of 1

Home > Section 6-10: Applicability of Certain Provisions.

Titie 28: Department of Housing Preservation and Development rn > Chapter 6: Tax
Except as otherwise specifically provided therein, the amendments to this chapter six
that became effective on June 19, 2008, shall only apply to multiple dwellings that
commence construction on or after July 1, 2008. For purposes of determining when any
such multiple dwelling has commenced construction, the definition of "commence" in such
amendments shall apply and, where it is determined that such multiple dwelling
commenced construction on or after July 1, 2008, the definition of "commence" in such
amendments shall supersede the definition of "commencement of construction" contained
in 6-01 of this chapter.
Source URL: http://rules.citvofnewvork.us/content/section-6-10-applicability-certain-provisions
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DOCUMENT 3
63-a 63-b AND 63-c OF THE RENT
REFORM ACT OF 2015
-~-
S. 6012
34
A. 8323
1 ment pursuant to this section for the fiscal year commencing

in calendar
2 year two thousand eight sha11 be made in accordance with this
subdivi3 sion and subdivision three -d of this section. An application
for an
4 abatement pursuant to this section for the fiscal
year commencing in
5 calendar year two thousand nine shall be made no later
than the
6 fifteenth day of February, two thousand nine. An application
for an
7 abatement pursuant to this section for the Fiscal year cormnenci
ng in
8 calendar year two thousand ten shall be made no later
than the fifteenth
9 day of February, two thousand ten. An application
for an abatement
10 pursuant to this section for the fiscal year commenci
ng in calendar year
11 two thousand eleven shall be made no later than the
fifteenth day of
12 February, two thousand eleven. An application for an abatemen
t pursuant
13 to this section for the fiscal years commencing in calendar
years two
14 thousand twelve and two thousand thirteen shall be
made in accordance
15 with subdivision three-e of this section. The date or
dates by which
16 applications for an abatement pursuant to this section shall
be made for
17 the fiscal [year] years beginning in calendar [year]
years two thousand
18 fourteen, two thousand fifteen, two thousand sixteen,
two thousand
19 seventeen and two thousand eighteen. shall be established by
the commis 20 sinner of Finance by rule, provided that such date or
dates shall not be
21 later than the fifteenth day of February for such calendar
[year] years.
22
63-a. Clause (A) of subparagraph (iv) of paragraph (a) of subdivi23 sion 2 of section 421-a o the real property tax law,
ae amended by
24 chapCer 432 oL the laws of 1998, the opening paragraph as amended
by
25 chapCer 19 of the laws of 2015, is amended to read as
follows:
26
(A) Unless excluded by local law, in the ciky of New York, the
bene27 fits of this subparagraph shall be available in the borough
of Manhattan
26 for new multiple dwellings on tax lots now existing or hereafte
r created
29 south of or adjacent to either side of one hundred tenth street
that
30 commence construction after July first, nineteen hundred
ninety-two and
31 on or before [June twenty-third] December thirty-first,
two thousand
32 fifteen
rovided
however
that such a multi le dwellin receives its
33 first temnorary or bermanenC certificate of occunanc
v covering all resi34 dential areas on or.._before December thirtv__first4 two thousand nineteen
,
35 and solely for nurooses of determining whether this clause
annlies and
36 notwithstanding_any_local law_to the contrary, "commence
shall mean the
37 date upon which excavation and constru lion of initial footin
s and
38 foundations lawfuLl be ins in nod fa'th or for an e1i
ible convey
39 sion, the date upon which the actual construction of the conversi
on,
40 alteration or im ovement of the
re-existin
building or structure
41 lawfully _begins in,,,,,good faithJ_ only if:
42
a. the construction is carried out with the substantial assistan
ce of
43 grants, loans or subsidies from any Federal, state or local
agency or
49 instrumentality, or
45
b. the local housing agency has imposed a requirement or
has certified
46 that twenty percent of the units are affordable to Families
of low and
47 moderate income.
48
5 63-b. Subparagraph (ii) of paragraph (c) of subdivision 2 of section
49 421-a o the real property tax law, as amended chapter 19
of the laws of
50 2015, is amended to read as follows:
51
(ii) construction is commenced after January first, nineteen hundred
52 seventy-five and on or before [Sune twenty-third] December thirty-first,
53 two thousand fifteen provided, however, that (A) such a
multiple dwell 54 ina receives its first tem orgy
r ermanent certificate of occupancy
55 covering. all residential areas on or before December thirty-f
irst. two
56 thousand nineteen (H) solety for ouroo~s of determini~_ whether
this
(}~" PPINTED ON PECYC LEP PAV[P

~f7(?
S. 6012
35
A. 8323
1 sUbparaaraoh applies and notwithstanding any local law to the _contrary,

2 "commence" shall mean the date vnon which excavation and construction of
3 initial footings and foundations lawfully begins in good faith or. for
4 an eligible conversion, the date upon which the actual construction of
5 the conversion, alteration or improvement of the pre-existing building
6 or structure lawfully begins in good faith, and (C) such commencement
7 period shall not apply to multiple dwellings eligible or benefits under
8 subparagraph (iv) of paragraph (a) of this subdivision;
9
S 63-c. Section 421-a of the real property tax law is amended by
10 adding three new subdivisions 16, 16-a' and 17 to read as follows:
11
16. (a) Definitions For the .pu_~oses of this subdivision:
12
(i) ~~421-a benefits" shall mean exemption from real nroperty taxation
13 pursuant to .. this subdivision.
14
(ii) "Affordability potion A" shall mean that, within any eligible
15 site: (A) not less than ten percent of the dwelling units are affordable
16 housing forty percent units (B) not less than an additional ten percent
17 of the dwelling units are affordable housing six~.percen t__units: (C).
18 not less than an additional five percent of the dwelling units are
19 affordable housing one _hundred thirty percent units and (D) such eliai20 b1e site is developed without the substantial assistance of arants~
21 loans or subsidies provided by a federal state or local
overnmental
22 agency or instrumentality qursuant to a program for the development of
23 affordable housing, except that.,__such eligible site may receive tax
24 exempt bond proceeds and four percent tax credits
25
1iii) ~~Affordability potion B shall min that, within any eligible
26 site. (A) not less than ten~ercent of the_ dwelling units are affordable
27 housing seventy percent units and (H) not less than an additional twen
28 ~ percent of the dwelling units are affordable housing one hundred
29 thirty percent units.
30
(iv) ~~Affordability potion C" shall mean that, within any eligible
31 site excludina_ the veoyr~hic area south. of ninety-sixth street in the
32 borough of Manhattan and all other eo ra hic areas in the city of New
33 York excluded pursuant to local law, {A~ not less than thirty percent of
34 the dwelling units_are affordable housi~_one hundred thirty percent
35 units, and (B) such eligible site is developed without the substantial
36 assistance of azants, loans or subsidies Drovided by a federal state or
37 local Qovernmental agency or ins~rumentality pursuant to a program for
38 the development of affordable housing.
39
Sv_) ~~Affordability option _.D.'! shall only _apply to a homeownership
40 project, of which one hundred percent of the units shall have an average
41 assessed value not to exceed sixty-five thousand dollars anon the first
42 assessment following the completion date and where each owner of a~
43 such unit shall agree in writing to maintain such unit as their prima
44 ry residence_for no less _than five years from the acquisition of such
45 unit.
46
(vi) Âffordability percentage" shall mean a fraction the numerator
47 of.. which is the number of affordable housin units in an eligible site
~8 and the denominator of which is the total..__number_of dwelling units in
49 such eligible site
50
Svii Âffordable housing forty percent unit" shall mean a dwelling
51 unit that: (A) is situated within the eligible site for which 421-a
52 benefits are granted and (H) upon initial zental and upon each subse53 quent rental_ following a vacancy __durina_._._the restriction period, is
54 affordable to and restricted to occu anc
b
individuals or families
55 whose househo_.ld income does not exceed forty percent of the area median
7'S ,c' PRINTED ON RECVCLEO PgVEP

[~
S. 6012
36
A. 8323
1 income adivsted for family size, at the time that such household
2 initially occupies such dwelling unit.
3
_(viii) "Affordable housing sixty percent unit" shall mean a dwelling
4 unit that: (A) is situated within the__eligible site Eor which 421-a
5 benefits are granted and (B) ugon initial rental and upon each subse6 quent rental following a vacancy during the restriction period, is
7 affordable to and _restricted to occupancy by individuals or families
8 whose household income does not exceed sixty percent of the area median
9 income, adiusted for family size
at the time that such household
10 initial~.occuoies such dwelling unit.
11
{ix) "Affordable housing seventy percent unit" shall mean a dwelling
12 unit that: (A) is _Situated within the eligible site for which 421-a
13 benefits are granted; and (B) unon_initial rental and upon each subse=
14 quent rental following a vacancy during the restriction period, is
15 affordable to and restricted t occu ancy by individuals or families
16 whose household income does not exceed seventy percent of the area medi17 an income, adiusted for family size, at the time that such household
19
(x) "Affordable housing one hundred thirty percent unit" shall mean a
20 dwelling unit that: (A) is situated within the eligible site for which
21 421=a benefits axe aranted~ and (H1 upon.initial rental and upon each
22 subse~{c uent rental Eollowins a vacancy during the restriction period, is
23 affordable to and restricted to occu anc
b
individuals or families
24 whole household income does not exceed one hundred thirty ~rcent of the
25 area median income. ad1_usted for family size,_at._the time that such
26 household initially occupies such dwelling unit.
27
_{xi) "Affordable housing unit" shall mean collectively and individ28 ually
affordable housing forty percent units affordable housing_sixty
29 Percent units, affordable housing seventy percent units and affordable
30 housing one_hundred thirty percent units.
31
(xii) ~~Aaency^ sha11 mean the department of housing preservation and
32 development.
33
_~xiii "ApQl,ication" shall mean an application for 421-a benefits_
34
(xiv) "Building service employee" shall mean any person who is reau_
35 larly employed at, and performs work in connection with the care or
36 maintenance of, an elivible site
includin
but not limited to_a
37 watchman, guard, doorman, buildincL.cleaner, porter, handyman, ignitor,
38 aardene~ groundskeeper, elevator operator and starter, and window
39 cleaner
but not including persons regularly scheduled to work fewer
40 than eight hours per week at the eligible site.
41
(xv) "Commencement date" shall mean, with resoec_t_ to any eligible
42 multiple dwelling
the date upon which excavation and construction of
43 initial footings and foundations lawfully begins in good faith or
for
44 an eligible conversion, the date anon which the actual construction of
45 the conversion. alteration or improvement of the pre-existing building
46 or structure lawfully begins in good faith.
47
~v_iZ!Completion _date" shall mean_ the date anon which the local
48 department o buildings issues the first temporary or permanent certif49 icate of occupancy covering all residential areas _of an eligible multiSD ole dwelling.
51
(xvii) "Construction period" shall mean with respect to any eligible
52 multiple dwelling a Aeriod: (A) beainnina_on the later of the commence53 ment date of such eligible multiple dwelling or three years before the
54 completion date of such eligible multiple dwelling; and _ {B) ending on
55 the day preceding the co~letion date of such el gible_multi~le dwell
56 ink
PPIMED ON NECVCLED PAPER
S. 6012
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
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29
30
31
32
33
34
35
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41
42
43
44
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46
47
48
49
50
51
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53
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37
A. 8323
~xviii "Eligible conversion" shall mean...the conversion, alteration or

improvement of a Dre-existin
buildin
or structure resulting in a
multiple dwelling in which no more than forty-nine percent of the floor
area consists of such ore-existing buildino or structure.
(xix) "Eligible multiple dwelling shall mean a multiple dwelling or
homeownerehi~ proiect containing six or more dwelling units created
through new construction or eligible conversion for which the commence ment date is after December thirt -first two thousand fifteen and on or
before Jvne fifteenth
two thousand nineteen
and for which the
completion date_ is on or before June fifteenth, two thousand twenty"
three.
(acx) "Eligible site" shall mean either: (A) a tax lot containing an
eligible multiule dwelling or (B) a zoning lot containing two or more
eligible multiple dwellings that are Hart of a single aonlication
(xxi) "Fiscal officer" shall mean the comptroller or other analogous
officer in__a citv_ havina a population of one million or more_
(~ncii) "Floor area" shall mean the horizontal areas of the several
floors or any portion thereof of a dwelling or dwellings, and accessory structures on a lot measured from the exterior faces of exterior
walls. or from the center line of art walls.
(xxiii) "Four percent tax credits" shall mean federal low income housice_ tax credits computed in accordance with clause (ii) of sub~araaraoh
(B) of Daraaraph (1) of subsection (b) of section forty-two of the
internal revenue code of nineteen hundred eighty-six, as amended.
x~civ _Homeownership_~roi ect^___sha.11_mean.__ a multi_j~le ,dwgllinct or
portion thereof operated as condominium or coo erative housin
however
it sha11 not include a multiple dwellinct or portion thereof operated as
cooperative or condo;ninium housing located within the borough of Manhattan, anfl shall not include a multiple dwelling that contains more than
khirty-five units.
(u~cv) "Market unit^ shall mean a dwelling unit in an eligible multiple
dwelling other than an affordable housing unit.
~xxv~ ~~Multiple.._dwellina" shall have the meanies set forth in the
multiple dwelling law.
(xxvii) ~~Non- resiflential tax loC" shall mean a tax lot that does not
contain any dwelling units.
(xxviii) "Rent si:abilization" shall mean, collectively, the renC
stabilization law of nineteen hundredsix_ty-nine, the rent stabilization
code
and the emergency tenant protection act of nineteen seventy-four
all as in effect as of the effective date of the chanter of the laws of
two thousand fifteen that added this subdivision or as amended thereafter, together with any successor statutes or regulations addressing
substantially the same subject matter.
~xxix.) "Rental nroiect" shall mean an eligible site ..in which all
dwelling units included in any a~~lication are operated as rental housina
(xxx) ."Residential tax lot" shall__mean a tax lot that contains dwell=
ina units.
(~i) ^Restriction period" shall mean a period commencing on the
completion date and ex~rina on the thirty-Eif th anniversary of the
completion date, notwithstanding any earlier termination or revocation
of 421-a benefits.
iii)^Tax exempt bond proceeds" shall mean the proceeds of an exempt
facility bond, as defined in paragraph (7) of subsection (a) of section
one hundred fort~two of the internal rev_enue_ code of nineteen hundred
eighty-six, as amended, the interest upon which is exempt from taxation
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1 under section one hundred three of the internal revenue code o nineteen
2 hundred eiahty-six as amended.
3
(xxaciii)
"Thirty-five
year
benefit" shall mean: (A) or the
4 construction period a one h ndred percent exemption from real__proDerty
5 taxation, other than assessments for local improvements (H) for the
6 first twenty-five years of the restriction period a one hunflred percent
7 exemption from real property taxation other than assessments for local
8 improvements: and,__jCL for the final ten years of the restriction period,
9 an exemption from real urooerty taxation, other than assessments for
10 local improvements, equal to the affordability percentage
11
~xxxiv) ^Twenty year benefit" shall mean_ (A) for the construction
12 period, a one hundred percent exemption from real property taxation
13 other than assessments for local improvements (B)__f or the first four 14 teen years of the restriction period, a one hundred percent exemption
15 from real property taxation other than assessments for local imorove16 ments. provided. however, that no exemption shall b~iven for any
17 portion of a unit's assessed value that exceeds $65,OOD; and (C) or the
18 final six years of the restriction period
a twenty-five percent
19 exemption from real_~roQerty taxation, other than assessments for local
20 improvements provided however that no exemption sha11 be given for
21 any portion of a unit's assessed value that exceeds X65,000.
22
(b) Benefit
In cities having a eobulation of one million or more
23 notwithstanding the provisions of any other subdivision of this section
24 or of any Qeneral, special or local law to the contrary new eligible
25 sites, except hotels,_that comply with the Drovisions of this subdivi26 sion shall be exemgt from real property taxation, other than assessments
27 for local improvements in the amounts and for the periods specified in
28 this paragraph. A rental nroiect that meets all.__of the requirements_ of
29 this subdivision shall receive a thirty-five year benefit and a homeown30 ership oroiect that meets all of the requirements of this subdivision
31 shal1_receive a_twenty year benefit.
32
_{c) Tax payments. In addition to any other amounts payable pursuant to
33 this subdivision the owner of an eli ible site receiving 421-a bene34 fits _,_shall pay, in _each tax_year in_which such 421-a_benefts are.,_in.
35 effect, real property taxes and assessments as follows:
36
~) with resQect to each eligible.__multi~le dwelling constructed on
37 such eligible site
real oroaerty taxes on the assessed valuation of
38 such land and any improvements thereon in effect during the tax year
39 prior to the commencement_date of such eligible multiple dwelling with4D out regard to any exemption from or abatement of real property taxation
41 in effect durina _ such tax vear,__which real._proner~ _taxes __shall be
42 calculated using the tax rate in effect at the time such taxes are due;_
43 and
44
._(iiLall assessment_s.__for local improvements_
X15
(d) Limitation on benefits for non-residential space If the aagrecrate
46 floor area of commercial. community facility and accessory use space in
47 an eliuible site
other than narking which is located not more than
48 twenty-three feet above the curb 1eve1, exceeds twelve percent of the
49 aQare as to floor area in such eligible site, any 421-a benefits shall be
50 reduced by a percentage equal to_,.,_.._such _excess__ if an __eligible site
51 contains multiple tax lots. the tax arising out of such reduction in
52 421-a benefits shall first be a ortioned pro rata among any non-resi53 dential tax _lots.
After any such non-residential tax lots are fully
54 taxable, the remainder of the tax arising out of such reduction in 421-a
55 benefits~if any shall be apportioned _pro rata among the_ remaining.
56 residential tax lots.
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1
(e) Calculation of benefit. Based on the certification of the aaencv
2 certifvina the aoolicant's eligibility for 421-a benefits the assessors
3 shall certify to the collecting officer the amount of taxes to be
4 exempted.
5
(f) Affordability requirements
During the restriction period, a
6 rental proiect shall comoly with either affordability option A, afforda7 bility option B, or affordability OAflop _C or for Aurposes of a homeown8 ershio proiect such nroiect shall comoly with affordability option D.
9 Such election shall be made in the a lication and shall not thereafter
10 be chanced. The rental proiect ehall,also comply with all provisions of
11 this oaravraoh during the restriction period and with snbnaraaraoh (iii)
12 of this paragraph both during and after the restriction period to the
13 extent provided in such subnaraaraoh.
14
(i) Affordable units shall share the same common entrances and common
15 areas _as market rate units
and shall not be isolated to a s ecific
16 floor or area of a building. Common entrances _shall mean any area reau17 larly used by any resident for ingress and egress from a multiple dwell 18 inq; and
19
(ii) Unless preempted by the requirements of a federal state or local
20 housing program either (A) the affordable housing units in an eligible
21 site shall have a unit mix proportional to the market units, or (B) at
22 least fifty nercent....of the_ affordab.le housing units in an eligible site
23 shall have two or more bedrooms and no more than twenty-five Dercent of
24 the affordable housing units shall have less than one bedroom.
25
iii
Notwithstanding _an~~rovision___of _rent stabilization to the
26 contrary, all affordable housing units shall be full
sub'ect to rent
27 stabilization during the restriction period provided that tenants hold 28 ina a lease and in occupancy of such affordable hous_i~ units at the
29 expiration of the restriction period shall have the right to remain as
30 rent stabili.zed tenants for the duration of their occupancy
31
{iv) All rent stabilization registrations required to be filed nursu32 ant to subparagraph (iii) of this paragraph shall contain a designation
33 that sDecifically identifies affordab.le_housina units created pursuant
34 to this subdivision as "421-a affordable housing units" and sha11
35 contain an explanation of the requirements that cooly to allsuch
36 affordable housing units.
37
(v) Failure to com~ly with the provisions of this paragraph that
38 require ..the creation, maintenance rent stabilization compliance and
39 occupancy of afordable housing units or for purposes of a homeownership
AO proiect the failure to comply with affordability potion D shall result
41 in revocation of any 421-a benefits for the period of_such non=com~li=
42 ance.
43
vi Nothing in ._this subdivision shall~A) prohibit the occupancy of
44 an affordable housing unit by individuals or families whose income at
45 any time is less than the maximum percentage of the area median income
46 a~usted for family size, specified for such affordable housin unit
47 pursuant to this subdivision, or {B) prohibit the owner of an eligible
48 site from reauirina upon initial rental or upon any rental following a
49 vacancy, the occupancy of any affordable housing unit by such lower
50 income individuals or families.
51
Vii) Following issuance of a temporary certificate of occupancy and
52 us. on each vacancy thereafter an affordable housing unit shall promptly
53 be offered for rental by individuals or families whose income does not
54 exceed the maximum Dercentaae of the area median income. adiusted for
55 family size snecified for such affordable housing uniC pursuant to this
56 subdivision and who intend to occupy such affordable housing unit as
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A. 8323
their Drimary residence. An affordable housing unit shall not be (A)

rented to a corporation. gartnershio or other entity, or (
_ B) held off
the market for a period longer than is reasonably necessary to perform
repairs needed to make such affordable housing unit available for occupancv.
(viii) An affordable housing unit sha11 not be rented on a temnorary
transient or short-term basis. fiver lease and renewal thereof for an
affordable housing unit shall be for a term of one or two years, at the
potion of the tenant
(ix) An affordable housing unit shall not be converted to co~erative
or condominium ownership
(x) The agency may establish by rule such requirements as the agency
deems necessary or appropriate for (A) the marketing of affordable housinq units, both upon initial occupancy and upon any_vacancv. (B) monitorina compliance with the provisions of this paragraph and (C) the
marketing_and monitoring of any homeownership proiect that is granted an
exemption pursuant to this subdivision
Such requirements may include,
but need not be limited to retaining a monitor approved by the agency
and paid for by the owner.
(xi) Notwithstanding any provision of this subdivision to the contrarv, a market unit shall be subiect to rent stabilization unless, in the
absence of 421-a benefits the owner would be entitled to remove such
market unit from rent stabilization u on vacancy by reason of the month _rent exceeding any limit established thereunder.
~gZ Building service employees. (i) For the purposes of this oaragraph, âpplicant" shall mean an applicant for 421=a benefits. any
successor to such applicant or any employer of building service employ
ees for such anolicant,___includina,._._but not limi t_ed,.__to,_ a proner~
management company or contractor
{ii) All building service employees employed by the aonlicant at the
eligible site shall receive the _applicable prevailing wage for the
entire restriction period
viii
The fiscal officer shall have the flower to enforce the
provisions of this_parauraAh. In enforcing such_.orovisions, the __fiscal
officer shall have the Hower:
(A) to investigate or cause an investigation to _be made to determine
the Drevailinc~wages for building service employees in making such
investigation, the fiscal officer may utilize wage and fringe benefit
data from various sources includin
but not limited to. data and
determinations of federal state or other governmental aaencies~
(H) to ._institute and _conduct insnections_at the site of the__work or
elsewhere
(C) to examine the books documents and recorfls
ertainin
to the
wages paid to, and . the _hours of work performed bv~uildina service
employees
(D) to hold hearin s and in connection therewith to issue sub oenas
administer oaths and examine witnesses; the. enforcement of a subpoena
issued under this paragraph shall be regulated by the civil practice law
and rules.;_
~_ to make a classifica tion b
~
crat, trade or other_,_generall~_.recoanized occupational category of the building service employees and to
determine whether such work has been performed by the building service
employees in such classification;
(F) to require the applicant to file with the fiscal officer a record
of the wages actualjV paid bv_such aonlicant.. to the building service
employees and of their hours of work
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A. 8323
_(Gj to delegate anv of the fo~oina~owers to his or her deAuty or

other authorized re resenta tive and
~ to nromulgate rules as he or she shall consider necessar for the
proper execution of the duties,__resoonsibilities and _Dowers conferred
upon him or her by the provisions of this subnaraaravh
(iv) If the fiscal officer finds that the aDolicant has ailed to
comoly with the oroyisions of this oaragraph, he or she shall.._,_ present
evidence of such noncompliance to the aaencv.
(v) Suboaraaraph (ii) of this naraaraoh shall not be applicable to:
(A) an eligible multiple dwelling containi~less than thirty dwelling
units; or
.(B) an elivible multiple dwelling in.. which all of the dwellin units
are affordable housing units and not less than fift
ercent of such
affordable housin
units u on initial rental and u on each subse uent
rental following a vacancy during the restriction period, are affordable
to and restricted to occupancy by individuals or families whose house hold income does not exceed one hundred twenty-five percent of the area
median income~.,_adiusted for famil~size,,_at the time that such household
initially occupies such dwelling unit.
(h) Replacement ratio. If the land on which an eligible site is
located contained any dwelling units three years pr.ior.to the commence ment date of the firgt.,__eligible multiple dwelling thereon, then such
eligible site shall contain at least one affordable housing unit for
each dwelling unit that existed on such date and was thereafter demolfished, removed or reconficLured.
{i) Concurrent exemptions or abatements An eligible multiple dwelling
receiving 421-a benefits shall not receive any exemption from or abate ment of real Property taxation under any other law.
(i) Voluntary renunciation or termination.
Notwithstanding
the
Qrovisions of any general, special or local law to the contrary, an
owner shall not be entitled to volun tarily renounce or terminate any
421-a benefits unless the agency authorizes such renunciation or termination in connection with the.__commencement of a new _tax exemption our~u_
ant to either the private housing finance law or section four hundred
twenty- c of this title,_
(k) Termination or revocation. The agency may terminate or revoke
421-a benefits for noncompliance with this subdivision. If 421-a benefits are terminated_or_revoked for noncompliance with this subdivisio%
all of the affordable housing units shall remain subiect to rent
stabilization or for a homeownership nroLect such ro'ect shall continue
to comAly with affordability option D of this subdivision and all other
requirements of this subdivision for the restriction period and a~
additional __ period expressly provided in this subdivision, as if the
421a benefits had not been terminated or revoked.
(1) Powers cumulative. The enforcem nt rovisions of this subdivision
sha11 not be exclusive and are in_addition to any other rights, reme_
dies, or enforcement Dowers set Eorth in any other law or available __a t.
law or in eauit~_
m Multiple tax_lots. If an eli. c~ible site contains multiple tax lots.
an application may be submitted with respect to one or more of such tax
lots. The agency shall determine eligibility or 421-a benefits based
upon the tax lots included in_such_aAolication.
fin) Applications
(i) The application with respect to any eligible
multiple dwelling shall be filed with the agency not later than one year
after the completion date of such eligible multiple dwell_in~
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1
{ii) Notwithstanding the provisions of anv general special or local
2 law to the contra~~the_agencv may require by rule that applications be
3 filed electronically.
4
Iiii~_ The agency may rely on certification by an architect or engineer
5 submitted by an applicant in_connection with_the filin~of an._ applica6 lion A false certification b
such architect or engineer shall be
7 _deemed to be prof essional misconduct pursuant to section sixty-five
8 hundred nine of the education law. Any licensee found guilty of such
9 misconduct under the procedures prescribed in section sixty-five hundred
10 ten of the education law shall be subiect to the penalties prescribed in
11 section sixty-five hundred eleven of the education law _and shall there 12 after be ineligible to submit a certification pursuant to this subdivi
13 Sion.
14
_(o) Filing fee. The agency may require a filing fee of three khousand
15 dollars per dwelling unit in connection with an_~pplication. However.
16 the ~encv _ may promulgate rules imnosinQ a lesser fee for eligible sites
17 containing eligible multiple dwellings constructed with the substantial
18 assistance of Rrants,__loans or subsidies provided by a federal state or
19 local governmental agency or instrumentality pursuant to a nroaram for
20 the develonmenC of affordable housing
21
_(A) Rules The avencv may promulgate rules to carry out the provisions
22 of this subdivision.
23
_{Q) Authority of city to enact 1oca1 law. Except as otherwise sDeci24 fied in this subdivision, a city to which this subdivision is applicable
25 ma_y enact a local law to restrict limit or condition the eligibility
26 for or the scone or amount of 421-a benefits in any___ manner, provided
27 that such local law may not grant 421-a benefits beyond those provided
28 in this subdivision and provided further that such ..local law shall not
29 take effect sooner than one year after it is enacted. The provisions of
30 sections 11-245 and 1i-245.1 of the administrative code of the cit
of
31 New York or of_ any other loca_1_,_law of the ci.ty_ of New York that were
32 enactefl on or before the effective Hate of the chanter of the laws of
33 two thousand fifteen which added this oara~raph shall not restrict,
34 limit or condition the eligibility for .or the,,,sc~e or amount__ of 421-a
35 benefits Dursuant to this subdivision.
36
.jr) Election_ Notwithstandin~anythina in this _subdivision to the
37 contrary, if a memorandum of understanding pursuant to subdivision
38 sixteen-a of this section has been executed and noticed a rental
39 proiect or homeownership nro~ect with a commencement date on or before
40 December thirty-first two thousand fifteen that has not received bene41 fits pursuant to. this section prior to the effective date of the chanter
42 of the laws of two thousand fifteen that added this subdivision maw
43 elect to comply with this subdivision and receive 421-a benefits nursu44 ant to this subdivision_
45
16-a. The provisions of subdivision sixteen of this section shall
46 take effect only upon the condition that on or bef re Januar fifteenth.
47 two .__thousand sixteen, a memorandum of understanding is executed by one,
48 or more, representative of the largest trade association of residential
49 real estate develoners~either for profit or not-for-profit, in New York
50 city as we11 as one,_or more, representative of the largest trade labor
51 association representing building and construction workers with member52 shin in New York city
53
Such memorandum of understanding shall include Qrov_isions reaardins,
5A wages or wave supplements for construction workers on buildings over
55 fifteen units where such bvildinas enioy_ the benefits of subdivision
56 sixteen of this section provided however that such memorandum m~als_.o
~(
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:L address issues including those related to the fi) number of units. (ii)
2 application of a wage schedule to different size oroiects and (iii)
wee
3 schedules for various aeoaranhic locations in New York city
The terms
4 and conditions o the memorandum of understandi~ shall
aAoly to all
5 proiects with more than fifteen units that receive benefits under this
6 subdivision sixteen of section after the memorandum of understandin is
7 executed.
8
Notwithstanding the foregoinv, if on or before Sanuary fifteenth, two
9 thousand _sixteen, the memorandiun of understanding has not been full
10 executed the provisions of subdivision sixteen of this section shall be
11 suspended such that no new applications shall be accented under subdivi12 sion sixteen of this section. Absent such full execution of such memo13 randum and notice .to the legislative bill draftin~c_.commission, the bene14 fits of subdivision sixteen of this section shall remain sus
ended that
15 no new applications shall be accented under subdivision sixteen of this
16 section_~ntil such memorandum is executed.
17
17. (a) Definitions. For purposes of this subdivision:
18
Si) ~~Affordable housing eiahty percent units' shall mean dwelling
19 units that: (A) are situated within the extended affordability
oroperty;
20
H u on initial rental and upon each subsequent rental following a
21 vacancy during the extended affordabilit
eriod are each affordable
22 and restricted to occupancy by individuals or families whose
household
23 income does not exceed one hundred percent of the area median income.
24 adiusted for family size, at the time that such household initially
25 occuoies____such dwelli~unit: and SC~upon initial rental and upon each
26 subsequent rental followinv a vacancy during the extended affordability
27 period, are collectively affordable and restricted to occupancy by indi28 viduals or families whose_household income does not exceed an average
of
29 eighty percent of the area median income adiusted for family size
at
30 the time that such household initially occupies such dwelling unit
31
(ii) "Affordable housing one hundred thirty percent units" shall mean
32 dwelling units that: (A) are situated within an extended afiordability
33 pLoperty and (B) upon initial rental and upon each subsequent rental
34 following a vacancy during the extended afEordability period.. are each
35 affordable and restricted to occupancy by individuals or families whose
36 household income does not .exceed one hundred th_r ty percent of the area
37 median income, adiusted. for family size at the time that such household
39
(iii) ~~Affordable housing unit" shall mean, collectively and individ40 ually, affordable housing eighty percent units and affordable housing
41 one hundred thirty gercent.units.
42
(iv) "Agencv~~ shall mean the department of housing preservation and
43 development.
44
(v) ~~Aonlication" shall mean an application for extended benefits
45 pursuant to this subdivision.
46
vi) ~~Buildina service employee" shall mean any person who is reQular47 l~ emol.oved at end performs work in connection with the care or mainte48 nance of, an extended affordability property including but not
limited
49 to, a watchman guard, doorman, buildincr cleaner
porter
handyman
50 ignitor, gardener,__ groundskeeper, elevator operator and starter,
and
51 window cleaner, but not including persons reqularly scheduled to work
52 fewer than eight hours per week in the extended affordability
property.
53
{vii) ~~Commencement date" shall mean the later of: (A) the expiration
54 date; or (B) the restrictive declaration date.
55
viiiZ "Expiration Hate" shall,
mean the _date upon which benefits
56 granted to a _twenty year benefit property or twenty-five year
benefit
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A. 8323
1 property pursuant to this section prior to the effective date

of the
2 chanter of the laws of two thousand fifteen that added this subdivisio
n
3 would expire.
4
(ix) "Extended affordability Deriod" shall mean notwithstand~n
an
5 earlier termination or revocation of the extended benefit, the
period
6 commencing upon the commencement date and ending: (A) fifteen
years
7 thereafter fora twenty year benefit property; and (B) ten years
there 8 after for a twenty-five year benefit oronerty
9
(x) "Extended affordability property" shall mean a twenty year benefit
10 pronert~_or a_twenty-five year benefit property that complies with
the
11
r visions of th's subdivision.
12
(xi) "Extended affordability requirement" shall mean that within
any
13 extended affordability property: A not less than twent~nerc
ent of the
14 dwellincL units are affordable housin ei ht
ercent units; an_d.__(B Z_not
15 less than an additional five percent of the dwelling units are
afforda16 ble housing one hundred thirty percent units.
17
(xii) "ExCended benefit" shall mean for any extendedaffordabili~
18
rn ooerty~_a fifty percent exemption from real property taxation, other
19 than assessments for local improvements, for the extended
affordability
20 Aeriod.
21
xiii "Fiscal of.ficer shal'1 mean the com troller or other analo
pus
22 officer in a cit havin a o ulation of one million or more.
23
(xiv) ~~Floor area~~ shall mean the horizon tal areas of the several
24 floors. or any portion thereof of a dwelling or dwellings and
accesso25 ry structure~on a lot measured from the exterior faces of
exterior
26 walls. or from the center line of party walls.
27
(acv) "Multiple dwelling" shall have the meaning set forth in
the
28 multiple dwelling law.
29
Sxvi) ~~Residential tax lot" shall mean a tax lot that contains dwell30 ina units.
31
xvii ~~Restrictive declaration" shall mean a document executed by all
32 parties in interest Co the extended affordabilit
ro ert
which
33 provides that, duri~ the extended affordability Qeriod, the
extended
34 affordability property shall _ comply with _the_extended
affordability
35 revuirement.
36
S viii^Restrictive dgclaration date'_ shall mean the date upon
which
37 the restrictive declaration is recorded against the extended affordabil
38 itv ~rooerty.
39
(xix) ~~Twenty year benefit property". shall., mean a multiple dwelling
40 that commenced construction prior to Ju1v first, two thousand
eight and
41 that was crranted_ benef~tS jJursuan t_ to this section prior to the
effec42 tive date of the chanter of the laws of two thousand fifteen
that aaaea
43 this subdivision _due to its compliance with the requirements
of item b
44 of clause (A) of subpar~raoh ~ivZ_of paragraph (a) of
_subdivision two
45 of this section.
46
_xx
~~T ent -five ear benef't ro rt ~~ shall me n a multiple dwell47 ing_ that ~m mence construction prior to July first, two
thousand eight
48 and that was granted benefits pursuant to this section prior
o the
49 effective date of the chapter of the laws of two thousand
fifteen that
50 added this subdivision due ,to its compliance with the requiremen
ts of
51 item b of clause (D) of subparagraph (iii) of paragraph
(a) of subdivi52 sion two of this section.
53
(b) Benefit. Tn cities having a population of one million or more.
54 notwithstanding the provisions o an other subdivision
of this section
55 or of any . general
`
_ special or looal law to the aontrarv, an extended
56 affordabilit
ro ert shall be ranted an extended benefit,.~ovid_J_
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A. 8323
1 however that such extended benefit shall be available onl if all resi2 denti 1 tax lots i
such extendefl afordability nronerty overate as
3 rental housing.
4
(c) Tax payments In addition to any other amounts payable pursuant to
5 this subflivision, the owner of an extended affordability prooQerty
6 receiving an extended benefit shall pay, in each tax year in which such
7 extended benefit is in effect, real oroDerty taxes and assessments as
8 follows
9
(i) real oronert taxes on the assessed val ation of such land and any
10 improvements thereon in effect during the tax
ear
recedin
the
11 commencement of the construction of such extended affordability property
12 without re and to an exem tion or abatement from real property taxation
13 in effect prior to such construction which real property taxes shall be
14 .calculated on the tax rate in effect_ at the time such taxes are due: and
15
(ii) all assessments for local improvements
16
(d) Limitation on benefits for non-residential__~ace. Any extended
17 benefit shall_ be reduced b+L the ~ercen taae of_agcLregate floor area of
18 the extended affordabilit
ro ert occu ied by commercial, community
19 facility
oarkinq
and accessory uses as provided in paracsranh (d) of
?.0 subdivision two of this section.
21
(e) Calculation of benefit Based on the certification of the agency
22 certif in
the a licant's eli ibility for the extended benefit, the
23 assessors shall certi~to the collecting officer the amount of taxes to
24 be exempted.
25
(f) Affordability requirement. During the extended affordability peri26 o~_an extended affordability pro~erty must romoly wiCh tlxe extended
27 affordability requirement and the restrictive declaration The extended
28 affordability property shall also comply with all
ovisions of this
29 paragraph during the extended affordability period and with subparagraph
30 _{i) of this paragraph both during and after the extended affordabili itv
31 period to the extent provided in such suboar~raoh.
32
~) Notwithstanding the provisions of an local law for the sCabiliza33 lion of rents or the emergency tenant; protection act of pipet en seven 34 ty-ovr, all affordable housing units in an extended affordability pron35 erty shall be fu11v subiect to control under such to al law r such ct
36 during the extended affordability period provided that tenants holding
37 a lease and in occupancy of such affordable housing units in an extended
38 affordabilit
ro ert
at the ex iration of the extended affordability
39 period shall have the ri ht to remain as rent stabilized tenants or the
40 duration of their occupancy. Upon any vacancy of an affordable housing
41 unit after the extended aff rdabilit
eriod such affordable housing
42 unit s all remain fully subiect to rent stabilization unless_ the owner
43 is entitled to remove such affordable housin unit from rent stabiliza44 lion unpn such vacancy by reason of the monthly rent exceeding any limit
45 established thereunder.
46
(ii) All rent stabilization registrations required to be filed oursu47 ant to subparagraph (i) of this oaraaraDh shall contain a designation
48 that specifically identifies affordable housing units cornglvina with the
49 extended affordabilit re uirement as "421-a affordable hous'n
units"
50 and shall contain an exolana~ion of the requirements that aDnly to all
51 such affordable housing units.
52
(iii) Failure to comply with the rovisions of this
ara rah that
53 recruire the maintenance rent stabilization and occu anc of affordable
54 housing units in an extended affordabilit
ro ert
shall result in
55 revocation of the extended benefit for the eriod of such non-com li56 ante.
~~ PpiNTE00N RECYC LEO PAPEP
S. 6012
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
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21
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23
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29
30
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33
3~
35
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41
~2
43
44
45
46
47
48
49
50
51
52
53
54
55
56
46
A. 8323
(iv) Nothing in this subdivision shall (A) prohibit the occ~Dancv of

an affordable housin
unit b individuals or families whose income at
anv time is less than the maximum uercentaae of the area median income
adiusted for .amily size, specified for such affordable housing unit
pursuant to this subdivision: or (B) prohibit the owner of an~extended
affordability oronerty from reauirina, upon initial rental or anon any
rental following a vacancy, the occupancy of any affordable housing unit
by such lower income individuals or families
(v) Unon each vacancy an affordable housing unit shall nromntly be
offered for rental b individuals or families whose income does not
exceed the maximum percentage of the area median income. adiusted for
family size, specified for such affordable housing unit pursuant to this
subdivision and who intend to occupy such affordable housing unit as
their primary residence. An affordable housing unit shall not be: (A)
rented to a corporation Dartnershiq or other entity or (B) held off
the market for a Aeriod longer than is reasonabl~ecessa~ to perform
repairs needed to make such affordable housing unit available for occupancv.
(vi) An affordable housing unit shall not be rented on a temoorarvt
tzansient or short term basis. Ever lease and renewal thereof for an
affordable housing unit shall be for a term of one or two years, at the
option of the tenant.
_(vii) an affordable housing unit shall not be converted to cooperative
or condominium ownership.
.viii) The agency may establish by rule such requirements as the aaency deems necessary or appropriate for (A) the marketing of affordable
housing units and (B1 monitoring compliance with the provisions of this
paragraph. Such requirements may include but need not be limited t~
retaining a monitor approved by the avencv and paid for by the owner
(a) Building service employees. (i, For the purposes of this oaragraph, ~~aonlicant" shall mean an anolicant for extended benefits, any
successor to such applicant or_a~emplover of building service emglovees for such.aoplicant, including,_ but not limited to. a Drooerty
management company or contractor.
iii) All building service employees employed by the applicant at the
extended affordability nro~erty shall receive the ao~licable prevailing
wage for the entire extended affordability period
(iii) The fiscal officer shall have the Hower to enforce the
provisions of this paraaranh. In enforcing such provisions, the fiscal
officer shall have the power
~A]__to inyestiaate or cause an investigation to_be made to determine
the prevailing wages for building service employees; in making such
investigation, the fiscal officer may utilize wage and fringe benefit
data from various sources, including, but not limited to, data and
determinations of federal state or other governmental agencies:
(B) to institute and conducC inspections at the site of the work or
elsewher__e,
(C) to examine the books, documents and records pertaining to the
wages paid to. and the hours of work performed bv, building service
e~lovees~
(D) to hold hearings anfl, in connection therewith. to issue subnoen_~_
administer oaths and examine witnesses the enforcement of a sub oena
issued under this paracrraoh shall be regulated by the civil practice law
and rules;
,~E) to make a classification by__craft, trade or other generally rec_o..g=,_
nized occupational category of the building service emDlovees and to
PPoNTEO ON REGVGLED PAPER
S. 6012
47
A. 8323
1 determine whether such work has been erformed by the building service
2 emnlovees in such classification:
3
(F) to require the _applicant to file with the fiscal officer a record
4 of the wages actually paid by such aDnlicant to the building service
5 employees and of their hours of work
6
(G) to delegate any of the foreaoina powers to his or her denuty or
7 other authorized representative: and
8
!H) to promulgate rules as he or_she shall consider necessary or the
9 prober execution of the duties responsibilities and rowers conferred
10 upon him or her by the provisions of this suboaraaranh
11
(iv) If the fiscal officer finds that the applicant has failed to
12 comply with the provisions of this paragraph he or she shall present
13 evidence of _,such noncompliance to the agency.
14
(v) Subnaraaraoh (ii) of this_.paraaranh shall not be applicable to:
15
(A) an extended affordability property containing less than thirty
16 dwelling units: or
17
(B) an extended affordability property in which all of the dwelling
18 units are affordable housin units and not less than fifty percent of
19 such affordable hou.sina units, upon initial rental and upon each subse20 cruent rental following a vacancy during the extended affordability neri21 od, are affordable to and restricted to occupancy by individuals or
22 families whose household income does not exceed one hundred twent -five
23 percent of Che area median incom~_ adiusted _for fami_~size_. at the time
24 that such household initially occupies such dwelling unit
25
(h) Concurrent exemptions or abatements. An extended affordability
26 property receiving an extended benefit shall not receive a~ exemption
27 from or abatement of real property taxation under any other law
28
_~j___ Voluntary renunciation or termination.
Notwithstanding
the
29 provisions of any general
special or local law to the contrary an
30 owner shall not be entitled to voluntarily renounce or terminate an
31 extended benefit unless the ,_,agenc~_ authorizes such renunciation or
32 termination in connection with the commencement of a new tax exem tion
33 pursuant to either the private housing finance law or section four
34 hundred,__twenty-c. of th s, title.._
35
j1) Termination or revocation. The agency may terminate or revoke the
36 extended benefit for noncompliance with this subdiv_ision. If the
37 extended benefit is terminated or revoked for noncom liance with this
38 subdivision. all of the affordable housinv units shall remain subiect to
39 the provisions of. an~local law for the stabilization of rents or the
40 emergency tenant protection act of nineteen seventy-four and all other
41 requirements of this subdivision for the entire extended affordability
42 period and any additional period expressly provided in this subdivision
43 as if the extended benefit had not been terminated or revoked.
44
(k) Powers cumulative,_ The enforcement provisions of this subdivision
45 shall not be exclusive and are in addition to any other rights, reme46 dies, or enforcement Dowers set forth in any other law or available at
47 law or in.equity.
48
(1) Multiple tax lots. If an extended affordabilitygroperty co..ntains
49 multiple tax lots. an application may be submitted with res ect to one
50 or mote of such tax lots. The agenov shall determine eligibility for an
51 extended benefit based u on the tax lots included in such a lication.
52
~_ AAplications
(i) The anAlication with respect to any extended
53 affordability property shall include a certification that_
the
54 restrictive declaration has been recorded against the extended afforda55 bility property; and (B) the extended affordability property is in
56 compliance with such restrictive declaration and this subdivision._
~ ,<' PRINTED ON RECVC LEO PAPEp
`~ K'
S. 6012
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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31
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33
34
35
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37
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40
41
42
43
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49
50
51
52
53
54
55
56
48
A. 8323
(ii) The application with respect to anv extended affordability nrooerty shall be fled with the a enc on or before the later of: (A)
December thirty-first, two thousand sixteen: or (B) eighteen months
after the expiration date
_iii
Notwithstanding the provisions of__ anvseneral, special or local
law to the contrary, the aaencv may require by rule that applications be
filed electronically.
(iv) The aaencv may rely on certification _by_._ an architect or engineer
submitted by an annlicant in connection with the filin of an a licalion. A false certification by such architect or engineer shall be
deemed to be
rofessional mi conduct pursuant to section sixty-five
hundred nine of the education law Any licensee found auilty of such
misconduct under the procedures prescribed in section sixty-five hundred
ten of the education law shall be subiect to the penalties prescribed in
section sixty-five hundred eleven of the education law and shall there after be ineli ible to submit a certification pursuant to this subdivision.
n Filing fee The aaencv may require a filing ee of three thousand
dollars per dwelling unit in connection with anv_application_.
~ Rules. The agency may promulgate rules to carry out the provisions
of this subdivision.
(p) Authority of city to enact local law Except as otherwise snecified in this subdivision a cit to which this _subdivision_,_is applicable
m~ enact a _local law to restrict limit or condition the eligibility
for or the scope or amount of extended benefits in any manner, provided
that such local law may not grant extended benefits _beyond those
provided in this subdivision and provided further that such local law
shall not take effect sooner than one ear after it is enacted. The
provisions of sections 11-245 and 11-245.1 of the administrative code of
the city of New York or of any other local law of the cit of New York
that were enacted on or before the effective date of the chanter of the
laws of two thousand fifteen that added this
ara ra h shall not
restrict, limit or condition the eligibility for or the scone or amount
of extended benefits ursuant to this subdivision.
63-d. Intentionally omitted.
63-e. Intentionally omitted.
~ 63-f. Subdivision 2 of section 421-a of the real property tax law is
amended by adding a new paragraph (j) to read as follows:
(i)
Voluntary
renunciation or termination. Notwithstanding __the
provisions of any general, special or local law to the contrar
an
owner shall not be entitled to voluntaril renounce or terminate any tax
exemption granted pursuant to this subdivision unless the 1oca1 housing
agency authorizes such renunciation or termination in connection with
the commencement of a new_tax exemption pursuant to either the nrivake
housing finance law or section four hvndred twenty-c of this title.
5 63-g. The opening paragraph of subdivision 3 of section 421-a of the
real property tax law, as amended by chapter 655 of the laws of 1978, is
amended to read as follows:
a. Application forms for exemption under this section sha11 be filed
with the assessors between February first and March fifteenth and based
on the certification of the local housing agency as herein provided, the
assessors sha11 certify to the collecting officer t .e amount of taxes to
be abated. If there be in a city of one million population or more a
department of housing preservation and development, the term ~~housing
agency sha11 mean only such department of housing preservation and
development. No such application sha11 be accepted by the assessors
1'S .(~ PLAIN TEO ON RECYCLED PAPfH

~~ C
DOCUMENT 4
PRIVATE HOUSING FINANCE LAW:
CHAPTER 44B, ARTICLE 2- LIMITED
PROFIT HOUSING COMPANIES
~:
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Lexis Advance"
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Document:NY CLS Priv Hous Fin, Art. II Note
.,
Copy Citation
Current through 2015 released chapiers 1-589
Privafe Housing Finance Law
Article II
Limited-Profit Housing Companies
Article II Limited-Profit Housing Companies
History
Add, L 1961, ch 803, eff Mar 1, 1962.
~ Annotations

Copyright O 7.016 Matthew Bender, Inc.

Terms: "Gould" New York Consolidated Laws "Private Housing Finance Law" "article II"
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:;
copy citation
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iVew York Consolidated Laws Service
Private Housing Finance Law
Article II
11. Policy and purposes of article

It is hereby declared that there exists in municipalities in this state a seriously inadequate
supply of safe and sanitary dwelling or non -housekeeping accommodations for families
and persons of low income, including accommodations for handicapped persons of low
income and aged care accommodations for aged persons of low income; that such
conditions are due, in large measure, to over-crowding and concentration of the
population, improper planning, excessive land coverage, lack of proper light, air and
space, improper sanitary facilities and inadequate protection from fire hazards; that such
conditions constitute an emergency and a grave menace to the health, safety, morals,
welfare and comfort of citizens of this state, necessitating speedy relief which cannot
readily be provided by the ordinary unaided operation of private enterprise and require
that provision be made by which private free enterprise may be encouraged to invest in
companies regulated by law as to rents, profits, dividends and disposition of their
property or franchises and engaged in providing such housing facilities and other facilities
incidental or appurtenant thereto for families or persons of low income; that it is
necessary that provision be made for participation by the state, its municipalities and the
New York state housing finance agency in the financing of such housing, for the
acquisition by such companies of real property required for such purposes and for public
assistance to,such companies by:the grating of-tax-exemptions; that the cooperation of
the state, its subdivisions and the New York state housing finance agency is necessary to
accomplish such purposes; that the provision of such adequate, safe and sanitary housing
accommodations by such companies jointly or severally are public uses and purposes for
which public money may be loaned and private property may be acquired by and for such
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companies and tax exemptions granted; that such conditions require the creation of the
companies hereinafter prescribed for the purpose of attaining the ends herein recited; and
the necessity in the public interest for the provisions hereinafter enacted is hereby
declared as a matter of legislative determination.
History
Add, L 1961, ch 803; derived from former Pub Hous 302; ; amd, L 1966, ch 1016, 1, L
1970, ch 789, 1, eff May iZ, 1970.
~ Annotations

Copyright ~c) 2016 Matthew Bender, Inc.
Con4ent Type: Statutes and Legislation

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..
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Current Through 201i released chapters 1-589

Private Housing Pina~ce Law
Article II
Limited-Profit Flouring Companies
11-a. Additional policy and purposes of article

1. It is hereby declared that the elimination of conditions causing a deterioration of the
quality of urban life in municipalities of the State and the revitalization and improvement
of the quality of urban life in such municipalities through comprehensive programs and
projects constituting a total attack upon such conditions are the most critical problems
facing the municipalities, the state and the federal government, and are vital to the
health, well-being, safety and prosperity of the inhabitants of the municipalities and the
people of the state. Neither the municipalities nor the state have adequate resources to
undertake, develop and operate the comprehensive programs and projects necessary for
the accomplishment of such purposes. The ordinary operations of private enterprise
cannot rectify such conditions or accomplish such purposes. The elimination of such
conditions and accomplishment of such purposes require the participation and cooperation
of the municipalities, the State, the Federal government, private enterprise, institutions of
higher learning, community and civic groups, fraternal and labor organizations,
foundations, and all other responsible components of the community.
2. Among the conditions causing such deterioration are: the residence of large numbers
of families, adults and children in slum ghettos; insanitary and inadequate housing or
otherphyscal environment, a severe shortage. of decent healthful housing
accommodations to meet the needs of large numbers of families, adults and children;
economic, educational or community imbalance resulting from excessive migration of
economic or other groups to or from communities; depletion of job or business
opportunities because of migration of business and industry from communities; and the
existence of physical, social, and economic blight and crime. Such conditions create and
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perpetuate slum ghettos, blight and crime, cause a progressive deterioration of the
quality of urban life for all persons in the municipalities and the State, render or tend to
render the municipalities undesirable places in which to live, work and raise families,
impair the sound economic, cultural and social growth of municipalities and communities
thereof, break down the ability of municipalities or communities thereof to grow, expand,
develop or continue as viable municipalities or communities, and threaten the life, health,
well-being, safety and prosperity of ail persons in municipalities and the people of the
State.
2-a. It is hereby found that improvement of the physical environment and revitalization
of the quality of urban life in such municipalities would be promoted by cooperative action
by tenants who are persons or families of low income to acquire ownership of their
dwellings and to operate them on a nonprofit basis; that such cooperative undertakings,
with their consequent pride and responsibility of ownership, would help to stem the
abandonment of deteriorating but structually [structurally]i* ~~sound buildings, which
contributes to a substantial loss of much needed housing stock, and would lead to the
stabilization and renewal of deteriorating neighborhoods. It is found necessary, in order to
assure the feasibility of such cooperative undertakings, to make available to such tenants
long-term financing on a favorable basis and tax exemption to enable them to purchase
and maintain their dwellings at a reasonable cost.
3. The rehabilitation or redevelopment of slum ghettos and other areas into sound
healthy balanced viable communities, the enhancement of the physical environment,
health, and social well-being of the inhabitants and the expansion of their social and
economic opportunity require among other measures the attraction to the neighborhoods
of varying economic classes in addition to persons of low income and the availability
therein of a wide choice of housing from the standpoint of design and amenities.
4. It is hereby further found that there are certain parts of municipalities where
conditions of blight are so extensive in area that, notwithstanding acontinued shortage of
safe and sanitary dwelling accommodations in the municipality for low and middle income
families, it is not economic for private enterprise to build limited profit housing in such
areas since it cannot supply proper housing at prices within the economic reach of lowincome families in such blighted areas or attract tenants or buyers from other areas by
offering rents and prices which are competitive with rents and prices of housing in areas
of the municipality which are not blighted. It is found that there are other locations in
such municipalities where housing development is desirable for sound community growth,
but, similarly, where private enterprise cannot build limited profit housing which is within
the economic reach of persons in the area who require such housing.
5. It is the purpose of this article to enable municipalities to undertake projects directly
or in combination with the Federal government, private enterprise and any of the other
responsible components of the community, to accomplish the public purposes herein
described through the most effective and economical concentration and coordination of
Federal, State, local and private resources and efforts.
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6. It is hereby further found and determined that the accomplishment of the purposes
herein described is a matter of public concern, a governmental purpose, a city, town, anc
village purpose, and a public purpose and a public use for the accomplishment of which
(a) the money and property of a city, town or village, may be given, loaned or expended,
(b) indebtedness may be contracted by a city, town or village, and (c) eminent domain
exercised by a city, town or village, as hereinafter provided.
History
Add, L 1968, ch 1089, 1, eff June 22, 1968; amd, L 1971, ch 1153, 1, eff July 6, 1971.
~ Annotations

Copyright <c~ 2016 Matthew Bender, Inc.
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Currentthrrouyh 2015 released chapters 1-589

Pdew York Consolidated Laws Service
Private Flousing Finance Law
Article IY
13. Limited-profit housing companies; how created

A company may be created by three or more persons, approved by the commissioner, by
making, subscribing, acknowledging and filing with the secretary of state a certificate
which shall be entitled and endorsed "Certificate of Incorporation of(name of company)
pursuant to the Limited-Profit Housing Companies Law"; provided that if the company is
to be organized to undertake amunicipally-aided project the commissioner shall not
approve such persons unless they shall have been first approved by the supervising
agency; provided further that no company shall be created to provide aged care
accommodations or accommodations for handicapped persons under this article, except
under this article and the not-for-profit corporation law. The certificate shall state:
1. The name of the proposed company.
2. The purposes for which it is to be formed which shall include among other things a
provision that the company is to plan, acquire, construct, own, maintain, and operate
projects pursuant to the terms and provisions of this article.
3. Except in the case of a not-tor-profit corporation, the amount of the capital
shares, and if any be preferred shares, the preference thereof.
4. Except in the case of anot-for-profit corporation, the number of shares of which
capital shall consist, all of which shall have a par value.
5. The municipality, as well as the county within this slate, in which its principal
business office is to be located, and the address to which the secretary of state shall
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mail a copy of process in any action or proceeding against the corporation which may
be served upon him.
6. Its duration, which shall be: (a) not less than the period for which the loans
contracted for under this article and the interest thereon remain unpaid in whole or in
part; and (b) not less than the period for which tax exemption is granted pursuant to
section thirty-three of this article; and (c) in any event not less than thirty-five years
from the date of occupancy of any project, except as may be provided in sections
thirty-five and thirty-six of this article.
7. The number of directors, which shall not be less than three nor more than twentyone, and who shall be elected by the stockholders or members of the corporation.
Unless required by the certificate of incorporation or the by-laws, directors need not
be stockholders. Directors appointed by the commissioner pursuant to subdivision
fifteen of this section or by the supervising agency pursuant to paragraph (c) of
subdivision sixteen of this section need not be stockholders or meet other
qualifications which may be prescribed by the certificate of incorporation or the bylaws. In a corporation undertaking astate-aided project one additional director may
be designated by the commissioner, and, in the case of all state-aided mutual
companies, such additional director shall be designated by the commissioner at the
creation of the company and shall serve from the time of such designation at least
until a board of directors has been elected by the tenants entitled to occupancy in the
project by reason of ownership of shares in such company. In a corporation
undertaking amunicipally-aided project one additional director may be designated by
the supervising agency, and, in the case of all municipally-aided mutual companies,
such additional director shall be designated by the supervising agency at the creation
of the company and shall serve from the time of such designation at least until a
board of directors has been elected by the tenants entitled to occupancy in the project
by reason of ownership of shares in such company. The director appointed by the
commissioner or the supervising agency need not be a stockholder or meet other
qualifications which may be prescribed by the certificate of incorporation or the bylaws. In the absence of fraud or bad faith the director appointed by the commissioner
hereunder or the supervising agency or the directors appointed by the commissioner
or by the supervising agency pursuant to subdivision fifteen or paragraph (c) of
subdivision sixteen respectively of this section shall not be personally liable for the
debts, obligations or liabilities of the corporation. Directors of a mutual housing
company are to serve in that capacity without salary but may be reimbursed for
expenses incurred directly relating to the duties of the director's office.
S. The names and post-office addresses of the directors until the first annual
...meeting.
9. The names and post-office addresses of the subscribers to the certificate, and a
statement of the number of shares of stock which each agrees to take in the
company.
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10. That, except in the case of a company to be aided by a loan from the federal
government or any agency or instrumentality thereof, or if the mortgage or mortgage
bonds which are to be used in financing the company's project are to be insured by
the federal government or any agency or instrumentality thereof, the entire amount
to be paid in cash or property by the shareholders and income debenture holders shall
be at least five per centum of the project cost in the case of an urban rental company
and a mutual company. The provisions of this subdivision shall not apply to a nonprofit company incorporated pursuant to the provisions of the not-for-profit
corporation law and this article for the purpose of providing housing for staff
members, employees or students of a college, university, hospital or child care
institution and their immediate families, or for aged or handicapped persons of low
income, nor to a municipally-aided non-profit company nor to a municipally-aided
mutual company, nor to a low income non-profit housing company.
11. That, so long as this article shall remain applicable to any project of the
company, its real property shall not be sold, transferred, encumbered or assigned
except as permitted by the terms and provisions of this article.
12. That all of the subscribers to the certificate are of full age, that at least twothirds of them are citizens of the United States, and that at least one of the persons
named as director is a citizen of the United States and a resident of the state of New
York.
13. That the company has been organized to serve a public purpose and that it shall
be and remain subject to the supervision and control of the commissioner, or, if the
company is organized to undertake a municipally aided project, of the supervising
agency, except as otherwise provided in This article, so long as this article remains
applicable to any project of the company; that all real and personal property acquired
by it, and all structures erected or rehabilitated by it, shall be deemed to be acquired,
rehabilitated or created for the proper effectuation of the purposes of this article, and
that the directors and subscribers of such company shall be deemed to have agreed
that they shall at no time receive or accept from such company in repayment of their
investment in its stock any sums in excess of the par value of the stock, together with
such dividends or other compensation as are prescribed by or permitted under this
article, and that, upon dissolution of the company, any surplus remaining after the
payment of all its obligations shall be distributed and disposed of and title to the
property may be conveyed in fee, only as prescribed by this article.
14. The certificate may provide that in the event that income debentures are issued
by the company the owners thereof may be given the same right to vote as they
would have if possessed of certificates of stock of the amount and par value of the
income debentures held by them. If provision is made for the issuance of income
debentures interest shall be paid by the company on income debentures only out of
net earnings of the company that would be applicable to payment of dividends if there
were no income debentures.
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15. That in the event of a violation 6y a state-aided company of any provision of the
certificate of incorporation or of law or of the loan or mortgage contract or any order
of the commissioner or of any rules and regulations duly promulgated pursuant to the
provisions of this article the commissioner may remove any or all of the existing
directors of the company and appoint such person or persons whom the commissioner
deems advisable, including officers and employees of the division of housing and
community renewal, as new directors to serve in the places of those removed; that
directors so appointed by the commissioner who are officers or employees of the
division of housing and community renewal shall serve in such capacity without
compensation; and that any directors so appointed by the commissioner shall serve
only for a period coexistent with the duration of such violation or until the
commissioner is assured in a manner satisfactory to him against violations of a similar
nature.
16. If the company is organized to undertake amunicipally-aided project, such
certificate shall contain:
(a) A declaration that the original directors, officers, subscribers and income
debenture holders possessing the right to vote, shall be deemed at the time of
accepting such offices, or subscribing to the stock or income debentures to have
agreed not to resign from the company and not to sell their stock or income
debentures prior to the completion of the project and the certification of the total
actual project cost by the supervising agency, except with the consent of the
supervising agency.
(b) A declaration that the shares of stock and the income debentures of the
company shall be issued only in such amounts and form as may be approved by
the supervising agency and that no stock shall be redeemed, purchased or retired
and no income debentures shall be redeemed prior to their dates of maturity or
purchased or retired by the company during the period in which the loan by the
municipality is in force or for which tax exemption is granted pursuant to section
thirty-three of this article, except with the consent of the supervising agency.
(c) A provision that in the event of a violation by the company of any provision
of the certificate of incorporation or of law or of the loan or mortgage contract or
of any rules and regulations duly promulgated pursuant to the provisions of this
article, the supervising agency may remove any or ail of the existing directors of
the company and appoint such person or persons which the supervising agency in
its sole discretion deems advisable, including officers or employees of the
supervising agency, as new directors to serve in the places of those removed;
that directorsso,appointed by,the supervising agency who,are, officers or ,,,
employees of the supervising agency shall serve in such capacity without
compensation; and that any directors so appointed by the supervising agency
shall serve only for a period coexistent with the duration of such violation or until
the supervising agency is assured in a manner satisfactory to it against violations
of a similar nature.
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(d) A provision that the supervising agency or its duly authorized representative
shall be notified in writing of and shall have the right to attend ali meetings of the
board of directors or of the stockholders and income debenture holders of the
company.
(e) A provision that the sale of stock by a stockholder or the company or the sale
of income debentures, the holders of which possess the right to vote, by any such
holder or the company, shall be subject to the consent of the supervising agency.
(f) Such other provisions, not inconsistent with law, as the supervising agency
may deem necessary to protect the investment of the municipality and to carry
out the purposes of this article.
17. The certificate of incorporation of anon-profit company incorporated pursuant to
the provisions of the not for-profit corporation law and this article shall, in addition to
all other matters required by law to be stated therein, state:
a. That its purpose is to provide housing and auxiliary facilities for staff
members, employees or students of any college, university, hospital, child care
institution and their immediate families, for aged or handicapped persons of low
income, or for any one of the above purposes, or to provide housing
accommodations pursuant to the terms and provisions of this article in the case of
a municipally-aided non-profit company, or to provide housing accommodations
pursuant to the provisions of this article in the case of a low income non-profit
housing company;
b. That the directors or trustees are and at all times shall be officers, directors or
trustees of such college, university, hospital or child care institution, or, in the
case of anon-profit company providing housing for aged or handicapped persons
of low income or of a municipally-aided non-profit company providing housing
accommodations pursuant to the terms and provisions of this article, or of a low
income non-profit housing company providing housing accommodations pursuant
to the provisions of this article, of a corporation organized pursuant to the
provisions of the not-for-profit corporation law;
c. That the property of such company shall upon dissolution vest in such college,
university, hospital, child care institution, or not-for-profit corporation, and
d. That no part of the net earnings of such college, university, hospital, child care
institution or not-for-profit corporation shall inure to the benefit of any private
individual.
18. Shat thesecretary ofstaTe is,designated,asthe agent of the-company upon
whom process in any action or proceeding against it may be served.
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History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1961, ch 544; L 1962, ch 628, 1, eff May 1,
1962; L 1962, ch 858, 2; L 1963, ch 584, 1; L 1965, ch 914, eff July 17, 1965; L 1966,
ch 515, 1; L 1966, ch 735; L 1966, ch 746; L 1966, ch 841, ~ 4, eff July 28, 1966; L 1966,
ch 992, eff Aug 3, 1966; L 1966, ch 1016, 5; L 1968, ch 89, 1; L 1968, ch 519, 2, eff
Sept 1, 1968; L 1970, ch 281, 2-5, eff Sept 1, 1970; L 1970, ch 332, 1, eff Sept 1,
1970; L 1970, ch 580, 1, eff May 8, 1970; L 1970, ch 789, 4-7, eff May 12, 1970; L
1970, ch 1024; L 1970, ch 1037, eff Sept 1, 1970; L 1973, ch 89, 1, eff March 20, 1973; L
1977, ch 565, eff Aug 1, 1977; L 1981, ch 973, Fj 1, eff July 31, 1981.
Annotations
New York Consolidated laws Service

Copyright g) 2016 Matthew Bender, Inc.
Content Type: Statutes and legislation

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Current through 2015 released chapiers i-589
Pfew York Consolidated Laws Service
Article II
Limited-Profit 6iousing Companies
14. Consent of commissioner to incorporation

Whenever any such certificate shall be presented to the secretary of state, he shall not
file such certificate unless there shall accompany the same a certificate of the
commissioner that he consents to the filing of such certificate; nor shall any amendment
to the certificate of incorporation be filed unless it is accompanied by a certificate of the
commissioner consenting thereto. If a company has entered into a contract with a
municipality for the construction of a municipally aided project, the commissioner shall
not issue a certificate consenting to an amendment of the certificate of incorporation of
such company, unless the supervising agency has given its written consent to such
amendment.
History
Add, L 1961, ch 803, eff Mar 1, 1962.
d Annotations
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Arficle II
S.invited-Profit Housing Companies
15. Participation by certain corporations and individuals

a.
(a) One or more banking organizations, foundations, labor unions, employers'
associations, veterans' organizations, colleges, universities, educational institutions,
child care institutions, hospitals, medical research institutes, insurance companies,
trustees, fiduciaries or any combination of the foregoing, shall have the power to
organize a company pursuant to the provisions of this article, and to purchase for
cash or to receive and hold in exchange for property, and to own the bonds of a
company and to invest, singly or jointly, or with the state or a municipality or the New
York state housing finance agency or the New York city housing development
corporation in a bond or note and single participating mortgage, or in separate bonds
or notes and mortgages, in an amount not greater than ninety-five per centum of the
total project cost in the case of a mutual company, urban rental company or a nonprofit company incorporated pursuant to the provisions of the not-for-profit
corporation law and this article for the purpose of providing housing for staff
members, employees or students of a college, university, child care institution, or
hospital and their immediate families and in the case of anon-profit company
incorporated pursuant to the not-for-profit corporation law and this article for the
purpose of providing housing for aged persons of low income or in the case of a low
income non-profit housing company such investment shall not be greater than the
total project cost. Where one or more banking organizations, foundations, labor
unions, employers' associations, veterans' organizations, colleges, universities,
educational institutions, child care institutions, hospitals, medical research institutes,
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insurance companies, trustees, fiduciaries, or the state or a municipality or the New

York state housing finance agency or the New York city housing development
corporation, shall participate in a loan to a company secured by a single participating
mortgage or by separate mortgages, the interest of each shall have equal priority as
to lien in proportion to the amount of loan so secured, but need not be equal as to
interest rate, time or rate of amortization or otherwise. Banking organizations,
foundations, labor unions, employers' associations, veterans' organizations, colleges,
universities, educational institutions, child care institutions, hospitals, medical
research institutes, insurance companies, trustees, fiduciaries or groups thereof, may
exercise any such power on such conditions, however, as to banking organizations i
and as to insurance companies only to the extent and upon such conditions as may be
authorized by the state superintendent of financial services. As used in this
subdivision, the terms "trustees" and "fiduciaries" shall include any fiduciary or
fiduciaries holding funds for investment, and the term "banking organizations" shall
have the same meaning as in subdivision eleven of section two of the banking law.
(b) Notwithstanding the provisions of paragraph (a) of this subdivision or of any
general, special or local law, for the purpose of completing the financing of project
cost, in the event that a municipality has made or contracted to make a loan to a
company or to a public benefit corporation to provide moneys to finance the project
cost of a project (1) the construction of which commenced prior to December first,
nineteen hundred seventy-five, (2) for which a temporary or permanent certificate of
occupancy was not issued prior to January first, nineteen hundred seventy-three, and
(3) which is assisted by a contract with the secretary of housing and urban
development of the United States pursuant to section two hundred thirty-six of the
national housing act, as amended, covering all dwelling units therein, one or more
banking organizations as defined in paragraph (a) of this subdivision, foundations,
labor unions, credit unions, employers' associations, veterans' organizations, colleges,
universities, educational institutions, child care institutions, hospitals, medical
research institutes, insurance companies, trustees or fiduciaries as defined in
paragraph (a) of this subdivision, trustees of pension and retirement funds and
systems, corporations, partnerships, individuals, or other entities or any combination
of the foregoing shall have the power to participate in such loan or make or
participate in a new loan secured by a bond or note and a single participating
mortgage, or by separate bonds or notes and separate mortgages, or to invest, singly
or jointly, with the municipality in a bond or note and single participating mortgage or
in separate bonds or notes and mortgages, upon such terms and conditions as may
be approved by the supervising agency, including but not limited to provisions
providing that (i) priority may be given to the payment of the principal of and interest
ort that portion of themortgage indebtedness attributable toparticipation in a toan or
an investment made by one or more of such entities or organizations, (ii) the interest
of the municipality created as a result of making a mortgage loan may be
subordinated to the interest that one or more of such organizations or entities may
have upon such participation or investment, (iii) the interest of each upon such
participation or investment need not be of equal priority as to lien, nor be equal as to
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interest rate, time or rate of amortization of principal or time of payment of interest,

or otherwise, provided, however, that the aggregate amount of the loan or loans or
investment made by one or more of such organizations or entities shall not exceed
thirty per centum of total project cost and, further provided that the aggregate
amount of the loan or loans to a company does not exceed such amount as is
authorized pursuant to paragraph (a) of this subdivision. All or part of the proceeds of
such participation or investment pursuant to this paragraph (b) may be applied to
reduce or prepay the loan made by the municipality. The provisions of subdivisions
one and five of section twenty-six of this article shall not apply to such participation in
a loan or investment pursuant to this paragraph (b) if undertaken in connection with a
project theretofore approved pursuant to said section twenty-six.
Notwithstanding the provisions of this article or of any general, special or local law, in
the event that a municipality has made a loan pursuant to this article prior to any
participation pursuant to this paragraph, the supervising agency shall have the power,
upon the mortgagor's consent, to modify the terms and conditions of the original
bond or bonds or note or notes and mortgage and any other documents executed in
connection with such initial loan, as the supervising agency may deem necessary or
desirable, to provide for such participation, including but not limited to modification of
the rate and time of payment of the interest on the initial loan or rate of amortization
of principal thereof, and provision for the additional borrowing cost, if any, with
respect to that portion of the mortgage indebtedness attributable to such
participation, provided, that except to the extent of any increase in the maximum
principal amount of the original mortgage loan, with regard to a company that has
obtained a temporary or permanent certificate of occupancy for part or all of a project
financed by a loan pursuant to this article before such participation in a loan or
investment is made, the sum of the payments of interest and principal on the
mortgage loan or loans which the company is obligated to make in any year as a
result of such modification and participation in a loan or investment made pursuant to
this paragraph, shall not exceed the sum of the payments of interest and principal
that such company would have been obligated to make in such year under the
original mortgage loan agreement if the project had been fully financed under the
original mortgage loan agreement by the municipality at an interest rate equal to the
maximum rate per annum prescribed by the i superintendent of financial services
pursuant to section fourteen-a of the banking law as of December nineteenth,
nineteen hundred seventy-five, or such higher rate of interest as the secretary of
housing and urban development of the United States shall approve pursuant to an
agreement to make interest reduction payments pursuant to section two hundred
thirty-six of the national housing act, as amended, with respect to such project and
that the rental or carrying charges in such projects shalFitot be iYxreased as'a'resuit
of such participation in a loan or investment and further provided, that the company
shall not seek or accept from the municipality any subsidy, direct or indirect,
excluding existing tax exemption, to offset any increased borrowing costs, if any.
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(c) Where the state or a municipality shall join with one or more organizations
of the
kind hereinabove mentioned, in making a loan secured by a single participating
mortgage or by separate mortgages, the state or a municipality is authorized, through
the commissioner of housing, or the supervising agency, as the case may be, to make
provision, either in the mortgage or mortgages or by separate agreement, for the
performance of such services as are generally performed by a banking institution
or
insurance company which itself owns and holds a mortgage or by a trustee under
a
trust mortgage. The commissioner and the supervising agency are hereby authorized
to act as trustee or to consent to the appointment of a banking institution to act in
such capacity. Any agreement made by the commissioner under this provision shall
be subject to the approval by the state comptroller and the attorney general as to
form.
(d) In connection with any participation in a loan or investment pursuant to
paragraph (b) of this subdivision the municipality shall have the power to assign
or
pledge, in whole or in part, to one or more of the organizations or entities
participating in such loan its right, title and interest in and to any mortgage held
pursuant to this article and any contract or arrangement for the payment of subsidy
with respect to such loan and the right to receive and apply to repayment of such loan
and the interest thereon any payments made under such mortgage or under such
contract or arrangement.
2. Notwithstanding any other provision of law, any banking institution or insurance

company or a group thereof operating a company, or owning all of the bonds of a
company may exercise all the powers conferred by this section and may enter into
contracts contemplated by this article and agree with the commissioner not to sell,
assign, or otherwise transfer such project or bonds or bond and mortgage or interest
therein of such company provided for pursuant to this article without the consent of
the
commissioner.
History
Add, L 1961, ch 803, eff March 1, 1962; amd, L 1962, ch 600, 2; L 1963, ch 584, 2; L
1964, ch 197, 1; L 1966, ch 746, 6; L 1968, ch 519, 3; L 1970, ch 281,
6; L 1970, ch
1037, 5; L 1972, ch 990, 1, eff June 8, 1972; L 1976, ch 23, 1, eff March
9, 1976; L
2011, ch 62, 104 (Part A), eff Oct 3, 2011; L 20iZ, ch 155, 67, eff July 18, 2012.
Annotations
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Current through 2015 released chapters i-589

ArYic6e I%
16. Limited-profit housing companies; partnership relations

Notwithstanding any provisions in this article to the contrary, but subject to such
regulations as may be prescribed by the commissioner or the supervising agency, as the
case may be:
1.
(a) Any company may be a partner (general or limited) in a partnership (general
or limited) formed for the purpose of providing such company with capital. Any
company incorporated pursuant to the provisions of this article may, with the
consent of the commissioner or the supervising agency as the case may be,
become a partner (general or limited) In a partnership (general or limited) upon
the consent of the company to the refinancing of its original mortgage loan by a
mortgage loan insured by the Federal government; such a partnership shall have
the same powers and duties as provided by this article as a partnership formed
for the purpose of providing a company with capital.
(b) Any partner (general or limited) of any partnership (general or limited) in
which a company is a partner (general or limited) may be the owner or holder of
any shares, bonds, income debentures, notes or other securities of such
company.
(c) Any company which is a partner (general or limited) in any such partnership
(general or limited) may exercise all the rights and powers and shall be subject to
ail the duties and obligations of a company in accordance with this article.
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2. The capital structure of a company which is a partner (general or limited) in a

partnership (general or limited) formed pursuant to paragraph (a) of subdivision one
of section sixteen may include withdrawals from the capital of such a partnership
(general or limited).
The provisions of this article relating to shares and income debentures shall be
deemed to include withdrawals from the capital of a partnership (general or limited)
of which a company is a partner (general or limited).
3. For the purposes of this section, the term partner shall be deemed to include a
member of a limited liability company, and the term partnership shall be deemed to
include a limited liability company, provided there is disclosure of the identity of the
managing member, including the identity of the natural person who is responsible for
the housing development. Notwithstanding any provision of this section to the
contrary, any change in general partner of a partnership or managing member of a
limited liability company shall be subject to the prior, written approval of the
commissioner or supervising agency.
History
Add, L 1968, ch 518, 1, eff )une 5, 1968; amd, L 1976, ch 631, 1, 2, eff July 21, 1976;
L 2005, ch 208, 1, eff July 7, 2008.
~ Annotations
New York Consolidated Laevs Service


Terms: "Gould" New York Consolidated Laws "Private Housing Finance haw" "article II"
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Current through 2015 released chapters 1-589
IVew York Consolidated Laws Service
Private Housing finance Law
,4rticle II
17. Powers
1. Subject to the limitations of this article, a company heretofore or hereafter organized
under this chapter shall have the powers and be subject to the limitations contained in
the business corporation law or the not-for-profit corporation law, as the case may be,
and shall have the following additional specific powers:
(a) To make and execute contracts and other instruments necessary or convenient in
the exercise of its powers;
(b) To acquire or contract to acquire from any person, firm, corporation,
municipality, federal or state agency, by grant, purchase, condemnation or otherwise,
leaseholds, real, personal or mixed property or any interest therein, and to sell,
assign, exchange, transfer, mortgage or encumber the same;
(c) To own, hold, clear and improve, leasehold, real, personal or mixed property or
any interest therein;
(d) To construct, reconstruct, rehabilitate, improve, alter or repair or provide for the
construction, reconstruction, improvement, alteration or repair of any project;
(e) To lease or rent any of the housing or other accommodations br any of the lands;
buildings, structures or facilities embraced in any project and establish and revise the
rents or charges therefor; or to purchase or lease a project or a part thereof from an
authority, pursuant to the provisions of section fifty-eightf*~~ or article twelve-b'~ *~~
of this chapter.
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(f) To arrange or contract with a municipality for the planning, replanning, opening,
grading or closing of streets, roads, roadways, alleys or other places or for the
furnishing of facilities or for the acquisition by a municipality of property or property
rights or for the furnishing of property or services in connection with a project;
(g) To insure or provide for the insurance of its property or operations as required by
law and also against such other risks as it may deem advisable;
(h) To limit by contract the exercise of any of its powers;
(i) To invest any funds held in reserves or sinking funds, or any funds not required
for immediate disbursement in property or securities in which savings banks may
legally invest funds subject to their control;
(j) To sue and be sued;
(k) To have a seal and alter the same at pleasure;
(I) To make and from time to time amend and repeal by-laws, rules and regulations
not inconsistent with the provisions of this article;
(m) To sell, lease, or otherwise convey all or any part of a project to an authority
upon such terms and conditions as shall have the prior approval of the commissioner
or the supervising agency, as the case may be;
(n) Anon-profit company incorporated pursuant to the not-for-profit corporation law
and this article for the purpose of providing housing and auxiliary facilities for staff
members, employees or students of any college, university, hospital, child care
institution and their immediate families; for aged or handicapped persons of low
income or for any one of the above purposes, may, with the prior written consent of
the commissioner or the supervising agency, as the case may be, lease its project or
any part thereof to any colleges, universities, hospitals, child care institutions or notfor-profit corporations. A lessee of a project may sublease all or any part of the
project to institutions and not-for-profit corporations which would be an eligible
sponsor pursuant to the provisions of this chapter and to staff members, employees,
and students of any college, university, hospital, child care institution, and to aged
and handicapped persons of low income. Any property so leased or subleased shall
remain subject to the provisions of this article and to the rules and regulations of the
commissioner, or supervising agency, as the case may be. A lease or sublease of the
entire project may provide for the assumption by the lessee or sublessee of the
management and control of the project, and all of the obligations thereof, as well as
the right to collect all revenues accruing thereto. In any event, the lessee shall pay
rental in an,amount at,least equal,to the,interest::and amortization clue upon the
mortgage of the property so leased.
(o) To lease to any authority, or to a municipality in connection with any federallyaided program to provide dwelling accomodations for persons of low income, one or
more dwelling units in a project upon such terms and conditions as shall have the
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prior written approval of the commissioner or the supervising agency, as the case
may be.
(p) To lease, with or without an option to purchase, all or any part of a project to
any person, firm, partnership, trust or corporation, subject to the prior written
consent of the commissioner or the supervising agency, as the case may be. Any
property so leased shall remain subject to the provisions of this article and to the
rules and regulations of the commissioner or the supervising agency, as the case may
be. Such lease may provide for the assumption by the lessee of the management and
control of the project, as well as the right of the lessee to collect all revenues accruing
thereto.
To do all other things necessary or convenient to carry out its powers.
2. A company shall file with the commissioner or the supervising agency, as the case
may be, a copy of any by-laws, rules, regulations and amendments thereto adopted by it
from time to time, which shall become effective upon approval by the commissioner or by
the supervising agency; provided, however, that if the commissioner or the supervising
agency shall fail to approve or disapprove such proposed by-laws within three months
after such filing, such by-laws shall become effective upon the expiration of such three
month period. These by-laws, rules, regulations and amendments shall contain such
provisions relating to the management of its business, the regulation of its affairs, the
calling of meetings, the manner of selection of officers and trustees and such other
provisions as may be reasonable and necessary.
3. Notwithstanding the provisions of any law, general or special, a mutual company may,
with the approval of the commissioner or the supervising agency, as the case may be,
require a standard form and procedure for the casting of proxies or absentee ballots in
any matter requiring a shareholder vote.
History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1962, ch 600, 3, eff Apr 19, 1962; L 1964, ch
428, ~ 1; L 1965, ch 155, 1, eff May 11, 1965; L 1966, ch 841, 5, eff July 28, 1966; L
1965, ch 573; L 1968, ch 858, eff June 22, 1968; L 1969, ch 253, 1, eff Apr 25, 1969; L
1970, ch 281, 7, 8, eff Sept 1, 1970; L 1970, ch 789, 8, eff May 12, 1970; L 1971, ch
188, 1, eff Apr 21, 1971; L 1973, ch 24, 1, eff Feb 20, 1973; L 1973, ch 300, 1, eff May
8, 1973; L 1977, ch 565, 2, eff Aug 1, 1977; L 2007, ch 597, 1, eff Aug 15, 2007.
Annotations
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Footnotes
i~ ~~
So in original. Should be a reference to Pub Hous Law 58.
______.
x~ 4i
So in original. Should be a reference to Article 10 of this chapter.

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Mew York Consolidated Laws Service
Private Housing Finance l.aw
Article II
Limifed-Profit Housing Companies
18. Designation of and service of process on secretary of

state and registered agent
The provisions of sections three hundred four, three hundred five and three hundred six
of the business corporation law shall apply to companies heretofore or hereafter
organized pursuant to the provisions of this arTicle.
History
Add, L 1961, ch 803; amd, L 1965, ch 155, 2, eff May 11, 1965.
Annotations
New York ConsolldatedLaws Service

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Current through ZO15 released
fVew York Consolidated Laws Service
Limited -Profit Housing Companies
chapters 1-589
Article II
19. Consideration for issuance of stock, bonds or income

debentures
No company shall issue stock, bonds, or income debentures except for money or property
actually received for the use and lawful purposes of the company, provided, however,
that a mutual company may issue stock for home owners purchase notes if the purchase
transaction has received the written endorsement of the commissioner in accordance with
supplementary rules and regulations of the commissioner made therefor and if at least
two hundred dollars in money or property is received by such company toward the
issuance of such stock. No stock, bonds or income debentures shall be issued for property
except upon a valuation approved by the supervising agency or by the commissioner, as
the case may be, and such valuations shall be used in computing the estimated or actual
project cost.
History
Add, L 1961, ch 803; amd, L 1962, ch 857, 2, eff May 1, 1962.
~ Annotations
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Article II
20. Mortgages, mortgage bonds and notes

1. Any company, subject to the approval of the commissioner or of the supervising
agency, as the case may be, may borrow funds and secure the repayment thereof by
bond or note and mortgage or by an issue of bonds under a trust indenture.
2. Each Ioan made to a company shall relate to one or more specified projects and shall
be secured by a mortgage upon all of the real property of which the project or projects, to
which the loan relates, consists, and upon ali fixtures and articles of personal property
attached to or used in connection with the operation of such project or projects. Such
mortgages may contain such other clauses and provisions as shall be approved by the
commissioner, or the supervising agency, as the case may be, including the right to
assignment of rents and entry into possession in case of default; but the operation of
such project or projects, in the event of such entry by a mortgagee or receiver, except in
the case of a mortgage loan insured or held by the federal government, shall be subject
to regulations promulgated by the commissioner or the supervising agency. Provisions for
the amortization of the mortgage indebtedness and residual indebtedness of companies
formed under this article shall be subject to the approval of the commissioner or the
supervising agency, as the case may be. In the case of an instrument or instruments
evidencing residual indebtedness issued pursuant to section twenty-three-a ocsection
forty-four-b of this chapter, the principal amount of such instrument or instruments and
the interest thereon, if any, shall be repaid over a period of time not exceeding the term
over which the mortgage loan insured by the federal government is to be repaid, plus ten
years, which period of time shall commence at such time as the commissioner or the
supervising agency shall approve, provided, however, that such period of time shall not
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expire more than fifteen years after the mortgage loan insured by the federal government
has been satisfied.
History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1962, ch 628, 2; L 1968, ch 1089, ~ 4; L
1971, ch 541, 1; L 1976, ch 341, 6, eff June 10, 1976.
Annotations

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Article %I
21. Capital structure

The capital structure of a company undertaking a project and the proportionate amount of
the project cost to be represented by mortgages, bonds, notes, income debentures and
shares shall be subject to the approval of the commissioner except as otherwise provided
in section twenty-three with respect to a municipally-aided project. The shares and
income debentures issued by a mutual company or urban rental company, other than a
non-profit company incorporated pursuant to the provisions of the not-for-profit
corporation law and this article for the purpose of providing housing for staff members,
employees or students of a college, university, hospital or child care institution and their
immediate families or for aged or handicapped persons of low income, and other than a
municipally-aided non-profit company or a municipally-aided mutual company, and other
than a low income non-profit housing company, shall not be less than the total of five per
centum of the project cost. The shares, bonds or notes, income debentures and
mortgages covering any project shall not exceed the actual project cost.
The provisions of this section with respect to the proportionate amount of the project cost
to be represented by mortgages, bonds, notes, income debentures and shares shall not
be applicable to any housing company project, if funds made available by the federal
government or any-agency or instrumentality thereof are used-irr financing the project, in
whole or in part, or if a mortgage or mortgage bonds issued with respect to such project
are insured by the federal government or any agency or instrumentality thereof.
History
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Add, L 1968, ch 519, 4; amd, L 1970, ch 281, 9; L 1970, ch 789, 9; L 1970, ch 1024,
5, eff May 20, 1970; L 1970, ch 1037, 6, eff Sept 1, 1970.
~ Annotations

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P7ew York Consolidated Laws Service
Article II
Limifed-Profit dousing Comparoies
22. State loans

1. The commissioner may enter into contracts for loans to a company, All such contracts
shall be subject to approval by the state comptroller and by the attorney general as to
form.
2. Loans by the state under such a contract shall be secured by a first mortgage lien, and
no such loan shall be made in an amount greater than ninety-five per centum of the total
project cost in the case of a mutual company, urban rental company or anon-profit
company incorporated pursuant to the provisions of the not-for-profit corporation law and
this article for the purpose of providing housing for staff members, employees or students
of a college, university, hospital or child care institution and their immediate families and
in the case of anon-profit company incorporated pursuant to the not-for-profit
corporation law and this article for the purpose of providing housing for aged or
handicapped persons of low income or in the case of a low income non-profit housing
company such loans shall not be made in an amount greater than the total project cost.
In the case of a loan in an amount greater than ninety-five per centum of the total project
cost, the commissioner may in his discretion require satisfactory independent guarantees
that the loan will be repaid according to the terms of the company's bond or note and
mortgage: Notwithstandingany other-provisions:of law;-if the company.:proposes to sell or
convey any part or parts of the mortgaged premises prior to the sale by the state of the
definitive bonds providing the funds for the state loan, the comptroller, upon the
application of the company and with the prior written consent of the commissioner, may
release from the first mortgage lien any part or parts of the mortgaged premises not
acquired through condemnation and not required for the project, provided that any net
Page 2 of 3
proceeds from the sale or conveyance of the said property will be held by the company
for the sole purpose of reducing, in accordance with the requirements of the
commissioner and comptroller, the principal amount of the state loan outstanding, and
provided further that the unpaid principal amount of the state loan then outstanding, as it
may be reduced by the net proceeds, if any, derived from the sale or conveyance, would
not be in an amount greater than ninety-five per centum of the total project cost and in
the case of anon-profit company incorporated pursuant to the provisions of the not-forprofit corporation law and this article for the purpose of providing housing for aged or
handicapped persons of low income or in the case of a low income non-profit housing
company such amount shall not be greater than the total project cost. The comptroller
shall execute such release in the usual form, which, when acknowledged, shall be
recorded by the county clerk and a minute thereof made upon a margin of the mortgage.
A company may, with the prior written consent of the commissioner, and subject to the
approval of the state comptroller and to the provisions of any contract with noteholders
and bondholders, lease any property not acquired through condemnation and not required
for the project, and may apply the income of such lease to any use authorized for any
other rental income. Such lease shall contain restrictions to protect and preserve the
project.
3. The commissioner may make temporary loans or advances to a company in
anticipation of any permanent loans and no such temporary loans or advances shall be
deemed to constitute part of such permanent loans unless such temporary loans or
advances have been made out of the proceeds of definitive housing bonds sold by the
state pursuant to chapters four hundred seven of the laws of nineteen hundred fifty-five
and nine hundred fifty-six of the laws of nineteen hundred fifty-eight.
4. The state shall have the power to invest jointly with the New York state housing
finance agency in a bond or note and single participating mortgage, or in separate bonds
or notes and mortgages of a company organized pursuant to the provisions of this article.
The interest of each shall have equal priority as to lien in proportion to the amount of loan
so secured, but need not be equal as to interest rate, time or rate of amortization or
otherwise. In such a case the state, through the commissioner of housing, is authorized
to make provision, either in the mortgage or mortgages or by separate agreement, for
the performance of such services as are generally performed by the New York state
housing finance agency itself owning and holding a mortgage. Any agreement made by
the commissioner under this subdivision shall be subject to the approval of the state
comptroller and the attorney general as to form.
History_
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1962, ch 858, 4; L 1963, ch 275, 1 eff Apr
16, 1963; L 1963, ch 584, ~ 4; L 1964, ch 197, 2; L 1966, ch 746, 8; L 1968, ch 486,
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1; L 1968, ch 519, 5; repealed, L 1970, ch 281, 10, eff Sept 1, 1970; L 1970, ch 789,
10; L 1970, ch 1037, eff Sept 1, 1970.
Annotations

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Flew York Consolidated Laws Service
Private Flousing Finance Law
fArYicle IY
Limited-Profit h6ousing Companies
23. Municipal loans and municipally aided projects

1. A municipality may make or contract to make loans to a company or to a public
benefit corporation providing housing for staff members, employees or students of a
college, university, hospital or child care institutions and their immediate families in an
amount not to exceed, except in the case of anon-profit company incorporated pursuant
to the provisions of the not-for-profit corporation law and this article for the purpose of
providing housing for aged or handicapped persons of low income, and except in the case
of a company or public benefit corporations providing housing for staff members,
employees or students of a college, university, hospital or child care institution and their
immediate families, and except in the case of a municipally-aided non-profit company or
of a municipally-aided mutual company, and except in the case of a low income non-profit
housing company, ninety-five per centum of the project cost to be secured, except as
provided in section fifteen of this article, by a first mortgage lien and may make
temporary loans or advances to a company in anticipation of a permanent municipal loan.
In the case of anon-profit company incorporated pursuant to the provisions of the notfor-profit corporation law and this article for the purpose of providing housing for aged or
handicapped persons of low income and in the case of a company or public benefit
corporations providing housing for staff members, employees or students of a college,
university, hospital or child care institution and their immediate families, and in the case
of a municipally-aided non-profit company or of a municipally-aided mutual company, and
in the case of a low income non-profit housing company, such loans may not exceed the
total project cost. Notwithstanding the foregoing, such loans to a municipally-aided
mutual company to assist in financing the acquisition of a building by residents thereof
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may not exceed ninety-five per centum of the project cost. Such mortgage, or bonds or
notes secured thereby and such contract may contain such terms and conditions not
inconsistent with the provisions of this article as the local legislative body may deem
necessary or desirable to secure repayment of its loan, the interest thereon and other
charges in connection therewith. In the case of a loan in an amount greater than ninetyfive per centum of the total project cost the supervising agency may in its discretion
require satisfactory independent guarantees that the loan will be repaid according to the
terms of the company's bond or note and mortgage.
1-a. Notwithstanding any other provision of this article or any other law, any such loan
may be made to a company at such rate of interest, if any, as the local legislative body
may deem necessary or desirable to carry out the policy and purposes of this article.
2. The supervising agency shall have exclusive power to promulgate such supplementary
rules and regulations with respect to a municipally-aided project and a company farmed
to undertake or operate any such project, as may be necessary to carry out the
provisions of this article. No assignment for collateral or pledge by a municipality of its
mortgage interest in a municipally-aided project to the state or to any political subdivision
thereof shall either affect the power of the supervising agency granted herein or authorize
the commissioner to exercise any powers not otherwise granted in this article.
3. Prior to the date of approval by the local legislative body of the contract between a
municipality and a company for a municipally aided project, the total estimated project
cost of such project, the estimated capital requirements of the company formed to
undertake or operate such project, the initial capital structure of such company and a
modification of any of the foregoing items, shall be subject to the approval of the
supervising agency and the commissioner. Any modification of any of the foregoing items
made after such date of approval of the contract shall be subject solely to the approval of
the supervising agency. If after such date of approval of the contract, any change is made
in such contract which requires the approval of the local legislative body, such change
shall also be subject to the prior approval of the commissioner.
4. The commissioner shall have the power, prior to the date of approval by the local
legislative body of a contract between a company and the municipality for a municipally
aided project, to approve the proposed maximum average of the rentals to be charged for
the dwellings in the project, or any modifications thereof. After such date of approval of
the contract, the supervising agency shall have sole power to increase or reduce the
rental rate for the dwellings in the project in the manner prescribed by section thirty-one
of this article for the variance of the rental rates. However, if a variance in such rental
rate is made necessary because of a change in the project which requires the approval of
the local legislative body, the prior approval by the commissioner of such variance of the
rental rate shall also be obtained.
5. The commissioner and the supervising agency shall each have full power to
investigate into and order a company undertaking or operating a municipally aided project
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to furnish such reports and information as each may require concerning the planning,
construction, acquisition, rehabilitation, management or operation of the project.
6. The commissioner shall have the power to audit the books of a company undertaking
or operating a municipally aided project solely as to the legality of the expenditures and
to disallow any expenditure which the commissioner shall find has been made in violation
of law or any rule or regulation duly issued pursuant to this article. The supervising
agency shall have the full power to audit the books of any such company as to the
legality, reasonableness or necessity of its expenditures. Any expenditure disallowed by
the commissioner or the supervising agency on such audits shall not be included in any
construction, management or operating costs in connection with any application to
increase or reduce the rents or carrying charges in a project.
7.
(a) At the direction of the supervising agency, with the consent and approval of the
mayor the municipality shall establish and keep a separate fund known as the limited profit mortgage reserve fund for the purposes of insuring the municipality against any
loss resulting from the making of a mortgage loan, temporary loan or advance to a
municipality-aided project and to protect the municipality in the event of delinquency
in the repayment of such mortgage loan, temporary loan or advance.
(b) There shall be paid into such fund the portions of fees allocated to and directed
to be deposited in such fund by the supervising agency with the consent and approval
of the mayor as provided for in subdivision seven of this section. In addition, there
shall be credited to and deposited in such fund any portion of the unexpended balance
remaining in the housing fund as the supervising agency with the consent and
approval of the mayor may determine to be in excess of the amounts needed to meet
expenditures required to be paid from the housing fund.
(e) The monies in the limited-profit mortgage reserve fund shall be deposited in one
or more of the banks or trust companies designated, in the manner provided by law,
as depositories of the funds of such municipal corporation. The comptroller or the
chief fiscal officer may invest the monies in such fund in obligations specified in
paragraph d of this subdivision. Any interest earned or capital gain realized on the
money so deposited or invested shall accrue to and become part of such fund. The
separate identity of such fund shall be maintained whether its assets consist of cash
or investments or both.
(d) Monies in such fund may be invested (1) in special time deposit accounts in, or
certificates of deposit issued by, a bank or trust company located and authorized to
do 6usiness'in tFiis state;'provided; liawever, tfiat sucfi time deposit account or
certificate of deposit shall be payable within such time as the proceeds may be
needed to meet expenditures for which such monies were obtained and provided
further that such time deposit account or certificate of deposit be secured by a pledge
of obligations of the United States of America or obligations of the state of New York
or obligations of any municipal corporation, school district or district corporation of
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Page 4 Of 7
the state of New York; or (2) in obligations of the United States of America,
obligations of the state of New York or obligations of the municipal corporation which
has established such mortgage insurance fund provided: (i) such obligations are not
tax exempt; (ii) such obligations shall be payable or redeemable at the option of the
owner within such times as the proceeds may be needed to meet expenditures for
purposes for which the monies so invested were obtained, and (iii) such obligations,
unless registered or inscribed in the name of the municipal corporation for which such
investment is made, shall be purchased through, delivered to and held in custody of a
bank or trust company in this state and shall be sold or presented for redemption or
payment only by such bank or trust company upon written instructions from the
comptroller or chief fiscal officer.
(e) An expenditure shall be made from such fund only by an authorization of the
supervising agency with the consent and approval of the mayor and only for one or
more of the following purposes:
(i) Payment of expenses of establishing and administering the fund;
(ii) Payment of a delinquent installment or installments of interest and principal
due to the municipality under a mortgage loan, temporary loan or advance to a
municipally-aided project;
(iii) Payment of any loss sustained by the municipality as a result of the making
of a loan, temporary loan or advance to a municipally-aided project, whether such
loss consists of a deficiency upon a mortgage, foreclosure sale as authorized by
sections thirty-four and ninety-four of this chapter or otherwise; except that in
the event the municipality acquires title to the project, payment for any loss or
deficiency shall be deferred until such time when the municipality shall dispose of
title to the project; any such loss or deficiency shall be diminished by the
municipality to the extent of the amount derived by the municipality from such
disposition plus any net operating income derived by the municipality during its
period of ownership or less any net operating loss sustained by the municipality
during such period and less any amount of interest paid by the municipality to
retire any bonded indebtedness incurred in connection with the loan made to such
project.
(iv) Payment of ail costs entailed in procuring mortgage insurance in such
amounts, and from such insurers as the supervising agency deems desirable to
insure the municipality against any loss resulting from the making of a mortgage
loan to a municipality-aided project.
The payment from such fund of any delinquent installment or installmentsdue the
municipality under a mortgage as provided in subsection (ii) of this paragraph e shall
not be deemed either a remission or waiver of the right to such installment or
installments and such installment or installments shall continue to be due and payable
to the municipality and shall be deposited, together with interest accrued, in the
mortgage insurance fund when paid.
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(f) The comptroller or chief fiscal officer shall keep a separate account for the
mortgage insurance fund. Such account shall show:
(i) The date and amount of each sum paid into the fund;
(ii) The interest earned by the fund;
(iii) The capital gains or losses resulting from the sale of investments of the
fund;
(iv) The interest or capital gains which have accrued to the fund;
(v) The amount and date of each withdrawal from the fund;
(vi) The assets of the fund indicating the cash balance therein and a schedule of
the amounts invested.
The comptroller or chief fiscal officer shall render a detailed report of the operation and
condition of such fund to the supervising agency annually each fiscal year and at such
other times as the supervising agency or the mayor may require.
8. Whenever reference is made in this article to a municipal loan, a loan by a
municipality, a loan from a municipality, a contract for a loan between a municipality and
a company, or any similar term, with respect to the territorial limits of the city of New
York such term shall be construed to refer to a loan made or to be made either by such
municipality or by the New York city housing development corporation, whichever is
applicable.
9. The city of New York shall have the power to invest jointly or participate in a loan with
the New York city housing development corporation or with one or more organizations or
entities mentioned in section fifteen in a bond or note and single participating mortgage,
or in separate bonds or notes and separate mortgages of a company organized pursuant
to the provisions of this article upon such terms and conditions as are provided in said
section fifteen of this article.
10. A municipality with a population of less than one million may, by action of its local
legislative body concurred in by the commissioner, provide for the supervision and
regulation of any municipally-aided project and the company carrying out such project by
the commissioner in lieu of the supervising agency. With respect to any such project and
company, the commissioner shall have, from and after the effective date of such action,
all of the powers and duties of a supervising agency pursuant to this article. The company
shall pay to the commissioner fees, as prescribed by the commissioner, to cover the
expenses of examination, audit, and supervision of the company and the project.
Notwithstanding any other provision:of law; funds collected pursuantto such fees shalt be
deposited to the credit of the general fund.
The provisions of subdivisions one and eight of this section shall apply only to projects
financed in whole or in part by a mortgage loan, temporary loan or advance by a
municipality. The provisions of subdivisions two, three, four, five, six and seven hereof
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Page 6 o~f 7
shall apply to all municipally-aided projects including projects financed in whole or in part
by a mortgage loan from the federal government or any agency or instrumentality thereof
or by a mortgage or mortgage bonds insured by the federal government or any agency or
instrumentality thereof.
History
Add, L 1961, ch 803, eff Mar i, 1962; amd, L 1962, ch 858, 5; L 1963, ch 584, 5; L
1964, ch 197, 3; L 1965, ch 785; L 1966, ch 515, eff June 7, 1966; L 1966, ch 746, 9; L
1966, ch 841, 6, eff July Z8, 1966; L 1965, ch 519, 6; L 1968, ch 975, 1; L 1968, ch
1089, ~ 5, eff June 22, 1968; L 1969, ch 738, 1; L 1970, ch 281, S1; L 1970, ch 789,
11; L 1970, ch 1024, 6; L 1970, ch 1037, 8; L 1971, ch 551, 4; L 1971, ch 804, 1; L
1971, ch 1153, 4; L 1972, ch 990, 2; L 1975, ch 868, 18-a; L 1975, ch 870, 22, both
eff Sept 9, 1975; L 1976, ch 23,
3 2, 3, eff March 9, 1976; L 1976, ch 343, 4, eff June 10,
1976; L 1976, ch 343, 5, eff July 1, 1977; L 1980, ch 331, 1, eff June 19, 1980.
> Annotations

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New York ConsolidaCed Laws Service
Private Housing Finance i~aw
Article II
Limited-Profi4 Housing Companies
24. Income debentures

1. With the approval of the supervising agency or of the commissioner, as the case may
be, the certificate of incorporation, or an amended certificate may authorize the issuance
of income debentures bearing no greater interest than six per centum per annum except
as otherwise provided in this article. After the incorporation of a company, the directors
thereof may, with the consent oftwo-thirds of the holders of the preferred stock issued
and outstanding offer to the stockholders of the company, the privilege of exchanging
their stock in such quantities and at such times as may be approved by the supervising
agency or the commissioner, as the case may be, for such income debentures. In no
event, shall the amount of stock of the company be less than a per centum of the total of
stock and income debentures, to be fixed by the supervising agency or by the
commissioner, as the case may be.
2. Such income debentures and any instrument under which they are issued may contain
such other provisions, including provision for amortization by serial maturities, through
the operation of a sinking fund or otherwise, as may be approved by the supervising
agency or by the commissioner, as the case may be.
History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1969, ch 631, 1, eff May 21, 1969.
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~ Annotations


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,Rrticle II
25. Working capital

The supervising agency or the commissioner, as the case may be, may permit stock or
income debentures to be issued for working capital to be used in connection with such
project to an amount not exceeding three per centum of the estimated project cost or the
actual project cost, whichever is larger.
History
Add, L 1961, ch 803, eff March i, 1962; derived from former Pub Hous 312-b;; amd, as
former Pub Hous 312-b, by I 1961, ch 132, and L 1961, ch 544; For effectiveness of
amendments to former law see 604.
~. Annotations

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New York Consolidaked Laws Service
Arfiicle II
Limited-Profif Housing Companies
26. Conditions and security for loans

1. No loan shall be made by the state, the New York state housing finance agency, a
municipality or the New York city housing development corporation unless the
commissioner, with respect to a project aided by a state loan or New York state housing
finance agency loan, or the supervisory agency, with respect to a mu~icipaily-aided
project, finds that:
(a) The municipality has approved the project as provided in subdivision five of this
section and has enacted or will enact regulations or appropriate restrictions
adequately protecting the project against future uses likely to depreciate unduly the
value of such project;
(b) The estimated revenues of the project will be sufficient to cover all probable
costs of operation and maintenance, of fixed charges and operating reserves and
depreciation reserves if any;
(c) The plans and specifications conform to the requirements of ail laws applicable
thereto, and assure adequate light, air, sanitation and fire protection;
(d), If the project isaided,by a,state loan, or a,New,York state housing finance
agency loan, the commissioner shall also find that the project is in conformity with a
plan or undertaking for providing low rent housing facilities for persons of low income
and for the clearance, replanning, reconstruction or rehabilitation of a substandard
and insanitary area or areas, and for other facilities incidental or appurtenant thereto
as may be approved by the commissioner.
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1-a. No company may be aided pursuant to this article by a mortgage loan or tax
exemption or both to finance the acquisition of a building by residents thereof unless the
commissioner or the supervising agency, as the case may be, finds that:
(a) the condition of such building is deteriorating and the building is located in a
deteriorating area or in an area threatened with deterioration by reason of economic,
social or physical changes occurring therein or in nearby areas;
(b) the building is not yielding sufficient revenues to cover costs of operation and
maintenance, of fixed charges and of reserves, if any, and also a reasonable profit to
the owner;
(c) the making of such loan will prevent further deterioration and abandonment;
(d) at least two-thirds of the present residents consent to such acquisition;
(e) financing for such acquisition is otherwise unavailable because of the
neighborhood, the age of the buildings, or other factors indicating an inability of the
private sector unaided to cause such acquisition to be effected;
(f) the proceeds of such loan will not be used to refinance existing debt in excess of
a reasonable relationship to current value; and
(g) the term for repayment of such loan does not exceed the remaining useful life of
the building.
2. The principal of a loan made by the state shall be repaid by the company over a
period of not to exceed fifty years except in the case of a loan to rehabilitate a~ existing
building, in which case the period shall not exceed thirty-five years, or the estimated life
of the project, whichever is shorter, in annual installments equal to the amount payable
by the state on the moneys borrowed for the project. Such annual installment of principal
need not be uniform in amount, but may be so varied that the total payment of principal
and interest shall be approximately equal and constant during the period of the loan. Each
payment of principal and interest shall be made to the state comptroller not later than
five days before each payment by the state is required. The loan shall bear the same rate
of interest paid or to be paid by the state for the definitive housing bonds issued on
account of such loan. The company shall pay to the state comptroller a proportionate
share of the cost of borrowing not later than thirty days after the state comptroller has
certified the amount of such share.
3. Any bonds or notes issued by the company and any mortgages relating thereto may
authorize the company, with the consent of the state comptroller in the case of a stateaided project,, or thesupervising,age~cy in the case,of a,municipally=aidedproject, to
prepay the principal of the loan. Such bonds or notes and mortgages may contain such
other clauses and provisions as the commissioner in the case of a state-aided project or
the supervising agency in the case of a municipally-aided project, shall require.
Notwithstanding the provisions of any general, special or local law, the principal of any
loans made pursuant to subdivision one of section fifteen of this article or the principal of
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a loan made by a municipality pursuant to this article and secured by a mortgage lien
subordinate to the lien of a first mortgage made pursuant to paragraph (b) of subdivision
one of section fifteen of this article may be amortized at such time or times or at such
rate as the supervising agency shall approve.
4. With respect to a state-aided project the commissioner may charge the company
reasonable fees for financing, regulation, supervision and audit. Fees collected for such
services shall be paid into and disbursed from such fund or funds as may be provided by
law.
5.
(a) In a municipality where there is a planning commission, the project shall first be
submitted to it for approval. Where changes in the city map and zoning amendments
or variances are necessitated by such project, such amendments, variances and
changes shall be submitted together with such project and considered as a part
thereof. Such planning commission, not IaTer than ten weeks from the date of the
referral of the project to it, after a public hearing held on due notice, notice of which
shall be published at least ten days prior thereto in the official publication of the
municipality, or if none exists, in a newspaper circulating in the municipality, shall
submit its report to the local legislative body certifying its unqualified approval, its
disapproval, or its qualified approval with recommendations for modifications therein.
After public hearing held on due notice and after the report is received or due
from the planning commission, the local legislative body may:
(i) if the planning commission shall have certified its unqualified approval,
approve the project by a majority vote;
(ii) if the planning commission shall have certified its disapproval or shall have
failed to make its report within ten weeks from the date such project was
submitted to it, nevertheless approve the project, but only by athree-fourths
vote;
(iii) if the planning commission shall have certified its qualified approval together
with recommendations for modifications, approve the project together with the
modifications recommended by the planning commission by a majority vote, or
approve the project without such modifications but only by athree-fourths vote.
(b) In a municipality where there is no planning commission the project shall be
submitted to the local legislative body which, after public hearing held on due notice,
may either approve or disapprove the project.
(c) Notwithstanding any other provision of law, changes in the city map, zoning
amendments, or variances contained in the plan shall be deemed approved by the
local legislative body when it approves the project. Any such changes in the city map,
zoning amendments, or variances shall become effective on the date on which the
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supervising agency shall file a resolution with the local legislative body in
implementation thereof.
6. The provisions of subdivisions one and five of this section shall not apply to a state
urban development corporation project or to any loan made by the state or the state
housing finance agency to such project, notwithstanding anything to the contrary
contained herein.
7. Notwithstanding anything to the contrary contained therein, the provisions of
subdivisions one and five of this section shall not apply to a Battery Park city project or to
any loan made by the state or the New York state housing finance agency to such project.
History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1963, ch 556, eff Apr 26, 1963; L 1966, ch
841, 7, eff July 28, 1966; L 1968, ch 174, ~ 5, eff Apr 10, 1968; L 1971, ch 551, ~ 5, eff
June 17, 1971; L 1971, ch 1153, 5, eff July G, 1971; L 1973, ch 596, 12, eff June 11,
1973; L 1973, ch 873, 1, eff )une 22, 1973; L 1976, ch Z3, 4, eff March 9, 1976.
Annotations

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FVew Yor6c Consolidated Laws Service
Article II
~ 27. Limitations
No company shall:
1. Acquire any real property or interest therein unless it shall first have obtained
from the commissioner or the supervising agency, as the case may be, a certificate
that such acquisition is necessary or convenient for the public purpose defined in this
article.
2. Pay interest upon its income debentures at a rate higher than six per centum per
annum except as otherwise provided in this article.
3. Issue its stock, income debentures and bonds covering any project in an amount
greater in the ag9re9ate than the actual project cost.
4. Without first having obtained the written consent of the commissioner or the
supervising agency, as the case may be:
(a) Construct, reconstruct, rehabilitate, improve or alter any project, or enter
into any contract therefor.
(b), Seiltransfer or assign, any, real propertyexcept.that-no such,consPnt shall
be necessary in any sale in foreclosure as herein provided.
(c) Except as otherwise provided in this article, encumber, lease or rent all or
any part of its real property.
(d) Enter into contracts for the operation of the project.
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(e) Make a guaranty of payment.

(f) Voluntarily dissolve.
(g) Enter into contracts for the payment of salaries to officers or employees.
5. Pay interest on its mortgage indebtedness at a rate higher than six per centum
per annum, or at such higher rates as may be approved by the commissioner, or the
supervising agency, as the case may be, but in no event shall any such rate exceed
the rate of interest prescribed by the i superintendent of financial services pursuant
to section fourteen-a of the banking law or, in the case of a mortgage loan insured or
held by the federal government, the rate approved by the federal government;
provided, however, that in the case of a company carrying out a state urban
development corporation project or in the case of an instrument or instruments
securing the residual indebtedness of a company, which indebtedness is secured by a
mortgage on the real property of a project, such rate shall not exceed the rate of
interest prescribed by the z superintendent of financial services pursuant to section
fourteen-a of the banking law or nine per centum per annum, whichever is the higher;
and further provided, however, that, in the case of a company that is a mortgagor
under a mortgage assigned to or acquired by the New York city housing development
corporation pursuant to subdivision twenty-one of section six hundred fifty-four of this
chapter and whose project is aided by a subsidy from the federal government, such
rate shall be the rate of interest approved by the supervising agency. Notwithstanding
the foregoing provisions of this section, the rate of interest that a company shall have
the power to pay on that portion of its mortgage indebtedness attributable to an
investment or participation in a loan made pursuant to subdivision one of section
fifteen by an organization or entity mentioned in such subdivision, shall be the rate of
interest approved by the commissioner or the supervising agency, as the case may
be.
6. Notwithstanding the provisions of subdivision five of this section twenty-seven, a
company, which has obtained a mortgage loan from the New York city housing
development corporation or the New York state housing finance agency and where it
is necessary for additional bonds or notes to be issued by the New York city housing
development corporation or the New York state housing finance agency (i) in order to
obtain funds to fulfill the mortgage loan commitment to such company, as such
commitment may be amended or (ii) to refund or renew notes issued in fulfillment
thereof, for a project partially or temporarily financed by bonds or notes issued, in the
case of the New York city housing development corporation, prior to the first day of
August, nineteen hundred seventy-five, and in the case of the New York state housing
financeagency, nnor,to the thirty-first day:of-0ecember;,nineteen hundred seventyfive, may pay interest on that portion of its mortgage indebtedness, the funds for
which were obtained by the New York city housing development corporation or the
New York state housing finance agency through the issuance of such additional or
refunding bonds or notes, at a rate not in excess of the cost of financing incurred by
the New York city housing development corporation or the New York state housing
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finance agency, as the case may be, to issue such additional or refunding bonds or
notes, provided that, with respect to the New York city housing development
corporation, such corporation determines that such cost of financing is reasonable and
the commissioner or the supervising agency, as the case may be, shall approve such
cost of financing.
History
Add, L 1961, ch 803, eff March 1, 1962; amd, L 1963, ch 795, 7; L 1964, ch 428, 3, eff
April 10, 1964; L 1966, ch 841, 8, eff July 28, 1966; L 1969, ch 631, eff May 21, 1969; L
1975, ch 61, 9; L 1975, ch 600, i; L 1976, ch 23, 5, eff March 9, 1976; L 1976, ch 341,
8, eff June 10, 1976; L 2011, ch 62, 104 (Part A), eff Oct 3, 2011.
> Annotations
New York Consolidated laws Servim


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Article II
28. Payments from earnings

1. There shall be paid annually out of the earnings of the company, after providing for all
taxes, assessments and expenses, a sum for interest on and amortization of the
mortgage indebtedness of all mortgages of the company, depreciation charges and
reserves if, when and to the extent deemed necessary by the commissioner or the
supervising agency, as the case may be, plus a dividend of six per centum on outstanding
stock and interest not exceeding six per centum on the outstanding income debentures of
the company; the obligation in respect of such payments shall be cumulative, and any
deficiency in interest, amortization, depreciation, reserves, if any, and dividends in any
year shall be paid either from any cash surplus derived from earnings remaining in the
treasury of the company in excess of the amount necessary to provide such cumulative
annual sums or from the first available earnings in subsequent years. If, at the end of any
three year period, the gross receipts should exceed the payments or charges necessary
for the purposes of the project or projects and are not needed for a sinking fund, reserves
or other purposes, the balance may be paid in further reduction of any indebtedness to
the extent and upon terms and conditions approved by the commissioner and the state
comptroller or by the supervising agency, as the case may be. A sinking fund may be
authorized by the commissioner or the supervising agency, to purchase and retire bonds,
-income..debentures or stock of[he company at a-price-approved by She commissioner or -=
the supervising agency, as the case may be, not exceeding par value thereof with accrued
or unpaid dividends or interest or if it be not practical to purchase such stock or income
debentures at a price so approved, the money in such sinking fund may be added to the
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surplus of such company. Any stock or income debentures purchased out of such sinking
fund shall be cancelled and shall not be reissued.
2. Anything contained in this article to the contrary notwithstanding, acompany which
receives a loan from the state, the New York state housing finance agency or a
municipality after July first, nineteen hundred sixty-nine, or a mutual company which has
been duly authorized to issue income debentures to finance the modernization or
replacement of project improvements or the acquisition and installation of energy saving
equipment and which is otherwise authorized to pay dividends upon its shares or interest
upon its income debentures, may, with the approval of the commissioner or the
supervising agency as the case may be, pay such dividends or interest in excess of six per
centum per annum, but in no event shall any such rate exceed the interest rate
prescribed by the superintendent of financial services pursuant to section fourteen-a of
the banking law, provided, however, if the voting stock of a mutual company has not
been issued and delivered to the stock subscribers, then the additional authorization of
such stock subscribers is required to be obtained by a majority vote.
3. No director or officer of a company shall receive, directly or indirectly, any salary,
compensation or emolument from such company, as such director or officer or in any
other capacity, unless authorized by the commissioner or the supervising agency, as the
case may be.
History
Add, L 1961, ch 503; amd, L 1962, ch 6Z8, 3 eff May 1, 1962; L 1969, ch 631, eff May 21,
1969; L 1978, ch 317, 1, eff June 19, 1978; L 2011, ch 62, 104 (Part A), eff Oct 3, 2011.
Annotations

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Current Chraugh 2015 released chapters 1-589

Article II
29. Acquisition of property

(a) After a project, other than a state urban development corporation project, has been
approved by the commissioner or the supervising agency and the local legislative body,
the commissioner or the supervising agency as the case may be, shall issue a certificate
declaring that the acquisition of the property is necessary for the public purpose defined
in this article and the company may acquire the property needed for the project or the
municipality may, with respect to a municipally-aided project or a project aided either by
a state loan or a loan from the New York state housing finance agency, take property by
condemnation for the company, pursuant to the provisions of article nine of this chapter.
(b) after a state urban development corporation project has been approved by the
commissioner, the commissioner shall authorize the company undertaking the project to
acquire the property needed for such project.
(c) Notwithstanding the provisions of subdivision (a) of this section, in the case of a
Battery Park city project financed or to be financed by a loan from Battery Park city
authority, the approval of the project and the certificate declaring that the acquisition of
the property is necessary for the public purposes defined in this article shall be issued by
Battery Park city authority.
History
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Add, L 1961, ch 803; amd, L 1964, ch 441, 1, eff Apr 10, 1964; L 1968, ch 174, ~ 8, eff Apr
10, 1968; L 1973, ch 596, 14, eff June li, 1973.
Annotations

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New Vork Consolidated Laws Service
Article II
30. Transfer of real property

1. Notwithstanding any requirement of law to the contrary, every executor,
administrator, trustee, guardian or other person, holding trust funds or acting in a
fiduciary capacity, unless the instrument under which such fiduciary is acting expressly
forbids, the state, its subdivisions, municipalities, a~i other public bodies, all public
officers, persons, partnerships and corporations organized under and governed as to
investments by or pursuant to the provisions of the banking law or organized under or
subject to the provisions of the insurance law, the superintendent of financial services i as
conservator, liquidator or rehabilitator of any such person, partnership or corporation,
owning or holding any real property may grant, sell, lease or otherwise transfer any such
real property to a company and receive and hold any cash, stock, bonds, notes,
mortgages, or other securities or obligations, secured or unsecured, exchanged therefor
by such company and may execute such instruments and do such acts as may be deemed
necessary or desirable by them or it and by the company in connection with a project or
projects. Notwithstanding the provisions of any general, special or local law, charter or
ordinance, such grant, sale, lease or transfer may be made without public auction or
bidding.
2. Any banking institution, foundation, labor union, employers' association, veterans'
organization or insurance company, or any group thereof, which has undertaken a project
through direct ownership or lease may transfer to the project any real property which it
owns or holds within an area. The market value of such property, as approved by the
commissioner or the supervising agency, as the case may be, shall be included in the
estimated or actual project cost.
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3. Notwithstanding the provisions of any general, special or local law, charter or

ordinance, the local legislative body of a city having a population of one million or more
may, upon the request of or with the approval of the board of education of such city's
school district, grant, sell, lease or otherwise transfer any lands or rights or interests
therein or thereto, including fee interests, easements, space rights or air rights or other
rights or interests owned by such city and occupied or reserved for school purposes and
needed therefor, to a company where necessary for the joint development of a project
and a school or appurtenant facilities without public auction or bidding, provided that no
such sale, lease or transfer of lands or rights therein or thereto is authorized where the
development of a project contemplates the erection of housing facilities over an existing
school or playground. The term of any such lease shall not be limited by any provision of
any general, special or local law or charter applicable to such city limiting the period of
time during which a lease or any renewal thereof may run.
History
Add, L 1961, ch 803, eff March 1, 1962; amd, L 1965, ch 378, 1, eff June 14, 1965; L
2011, ch 62, 104 (Part A), eff Oct 3, 2011; L 2012, ch 155, 68, eff July 18, 2012.
Annotations

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Article II
Limi4ed-Profit Flouring Companies
31. Rentals and selection of tenants

i.
(a) A company may, with the approval of the commissioner or the supervising
agency, as the case may be, fix maximum rentals per room to be charged tenants of
the dwellings, the average of the rentals for the dwellings in any project not to exceed
the maximum average rentals determined by The commissioner or the supervising
agency, as the case may be, before any commitments are made by the company for
the construction of the project. The commissioner or the supervising agency, upon his
or its own motion, or upon application by the company or of a stockholder, lienholder,
a creditor, or of holders of at least ten per centum of the bonds of the company, or by
the federal government where the mortgage loan of the company is insured or held
by the federal government, may vary such rental rate from time to time so as to
secure, together with all other income of the company, sufficient income for it to meet
within reasonable limits all necessary payments to be made or projected to be made
during the term of a lease by the said company, of all expenses including fixed
charges, sinking funds, reserves and dividends on outstanding stock as authorized by
the commissioner or the supervising agency, as the case may be. Letting, subletting
or assignment ofJeases of apartments at greater rentals-thanthose approved by the
commissioner or the supervising agency shall be unlawful. Where the mortgage loan
of a company is insured or held by the federal government or where a project is
owned by the federal government, rental rates shall be varied without regard to the
provisions of any general, special or local law which would otherwise limit or control
such rental rates or the determination or variation thereof for so long as such
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mortgage loan remains outstanding or the project financed by such a mortgage loan
is owned by the federal government. No variation of a rental rate in a project financed
by a mortgage loan insured or held by, or owned by the federal government shall be
effective unless approved by the federal government.
(b) Unless any applicable regulation of or regulatory agreement with the federal
government shall otherwise provide, (i) the tenants in a project financed by a
mortgage loan insured or held by the federal government shall be entitled and may
elect to enter in a lease for a term of up to three years at such rental rates as may be
established by the commissioner or the supervising agency, as the case may be,
pursuant to paragraph (a) of subdivision one of this section, (ii) the rental rates to be
charged under any such lease shall be established after consideration of the term of
such lease and may differ from the rental rates to be charged under any other lease
of a different term and (iii) the commissioner or the supervising agency, as the case
may be, shall in establishing such rental rates consider the obligations of the company
under any instruments evidencing or securing any residual indebtedness. Such leases
shall contain a provision authorizing the variation of the rental rates during the term
of such leases upon an application made by the federal government pursuant to
paragraph (a) of subdivision one of this section.
(c) [There are two subdivisions 1(c)] A company may, with the approval of the
commissioner or the supervising agency, as the case may be, fix maximum charges
to be paid by each occupant for the non-housekeeping accommodations, aged care
accommodations or non -housekeeping accommodations for handicapped persons,
which charges may include payment for board and such other services as may be
provided as an incident to occupancy, the average of such charges for all the nonhousekeeping accommodations, aged care accommodations or non-housekeeping
accommodations for handicapped persons in any project not to exceed the maximum
average charges for all such non -housekeeping accommodations, aged care
accommodations or non -housekeeping accommodations for handicapped persons
determined by the commissioner or the supervising agency as the case may be,
before any commitments are made by the company for the construction of the
project. The commissioner or the supervising agency upon his or its own motion, or
upon application by the company or of a stockholder, lien holder, a creditor or of
holders of at least ten (10%) per centum of the bonds of the company, may vary
such charges from time to time so as to secure, together with all other income of the
company, sufficient income for it to meet within reasonable limits all necessary
payments to be made by said company, of all expenses including fixed charges,
sinking funds, reserves and dividends on outstanding stock as authorized by the
commissioner or supervising agency as the case may be. It shall be unlawful to make
non-housekeeping accommodations, aged care accommodations or non-housekeeping
accommodations for handicapped persons available at greater charges than those
approved by the commissioner or the supervising agency.
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(c) [There are two subdivisions 1(c)] Disclosure of bases. The commissioner,
administrator or supervising agency, as the case may be, shall make available for
inspection and copying by the residents in any affected development, all items and
data and recommendations utilized as the various bases for the decision on increases
in rental or carrying charges, upon notification of the decision to the applicant of the
action taken.
2.
(a) The dwelling or non-housekeeping accommodations without board in a company
project shall be available for persons or families of low income whose probable
aggregate annual income at the time of admission and during the period of occupancy
does not exceed, the greater of (i) the median income for such persons or families for
the metropolitan statistical area in which the project is located, or if a project is
located outside a metropolitan statistical area, the median income for such persons or
families for the county in which the project is located, as most recently determined by
the United States department of housing and urban development, in which case any
person or family becoming eligible for admission pursuant to this subparagraph shall
pay, from the time of admission, a rental surcharge as provided for in subdivision
three of this section, computed on the basis of the income limitations applicable to
such persons or families in the absence of this subparagraph, or (ii) seven times the
rental, including the value or cost to them of heat, light, water and cooking fuel, of
the dwellings that may be furnished to such persons or families, except that in the
case of families with three or more dependents, such ratio shall not exceed eight to
one. The'~probable aggregate annual income" in the case of dwelling accommodations
means the annual income of the chief wage earner of the family, plus all other income
of other members of the family over the age of twenty-one years, plus a proportion of
income of gainfully employed members under the age of twenty-one years, the
proportion to be determined by the company as approved by the commissioner or the
supervising agency, as the case may be, excluding therefrom a deduction of 1 fifteen
thousand dollars from the income of secondary wage earners of the family or a larger
deduction if approved by the commissioner or the supervising agency, as the case
may be, except that the company, as approved by the commissioner or the
supervising agency, as the case may be, may exclude a proportion of the income of
other members of the family over the age of twenty-one years for the purpose of
determining eligibility for admission or continued occupancy, or for establishing the
rental of such family, or for all such purposes; in the case of such non-housekeeping
accommodations it means the annual income of the occupant, provided that the
commissioner or supervising agency, as the case may be, may make rules and
regulations relative,to the allocationof,the,income of a family among the members
thereof for the purpose of determining the income attributable to such occupant.
(b) For the purpose of determining maximum income to establish eligibility for
admission or continued occupancy of, or the imposition of surcharges upon, tenantcooperators in a mutual company project, or for all such purposes, there may be
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added to the total annual carrying charges an amount equal to six per centum of the
investment of a person or family in the equity obligations of such housing company
and, where not included in the carrying charges payable to such company, the value
or cost to them of heat, light, water and cooking fuel and, to the extent authorized by
the commissioner or the supervising agency as the case may be, the value or cost to
them of repainting and replacement of fixtures and appliances.
(c) The non-housekeeping accommodations with board in a company project
including non-housekeeping accommodations with board designed for the occupancy
of handicapped persons shall be available for persons of low income whose probable
aggregate annual income at the time of admission and during the period of occupancy
does not exceed four times the annual charges to be paid by such persons and in the
case of aged care accommodations two times the annual charges to be paid by such
persons. The "probable aggregate annual income" means the annual income of the
person occupying such non-housekeeping accommodations, aged care
accommodations or non-housekeeping accommodations for handicapped persons,
provided that the commissioner or supervising agency, as the case may be, may
make rules and regulations relating to the allocation of the income of a family among
the members thereof for the purpose of determining the income attributable to such
occupant.
(d) A company may, with the approval of the commissioner or the supervising
agency, as the case may be, lease dwellings in a project to an authority, at rentals
fixed for such dwellings pursuant to the provisions of subdivision one of this section
less an appropriate adjustment for the increased tax exemption, if any, attributable to
such dwellings pursuant to subdivision three of section thirty-three of this chapter, for
occupancy by persons and families of low income who are eligible and pay rents
therefor pursuant to the provisions of the public housing law.
(e) Notwithstanding the provisions of this subdivision, families ~ whose probable
aggregate annual income does not exceed one hundred twenty-five percent of the
limitations as to income as determined pursuant to paragraphs (a) and (b) of this
subdivision, shall also be eligible for admission to the dwelling or non-housekeeping
accommodations without board of a project on the understanding that any family
becoming eligible for admission by reason hereof shall pay, from the time of
admission, a rental surcharge as provided for in subdivision three of this section,
computed on the basis of the income limitations applicable to such family in the
absence of this subdivision. In applying the provisions of subdivision three of this
section to a family becoming eligible by reason of this section, the maximum income
prescribed by law for admission or occupancy shall for all purposes be computed
without-reference to this paragraph:
2-a. Notwithstanding any other provision of law, the commissioner or supervising agency
shall authorize and make provision in rules and regulations for an immediate downward
adjustment in surcharge upon a showing of substantial decrease in income caused by
events including, but not limited to death, disability or illness.
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3. In the event that the income of a person or family in occupancy should increase and
exceed the maximum prescribed by law for admission or for continued occupancy, based
on the latest existing rent, by more than twenty-five per centum, such person or family
shall be subject to removal from the dwelling, non-housekeeping, aged care
accommodations or non-housekeeping accommodations for handicapped persons
provided, however, that such person or family may be permitted to remain in occupancy
until such income exceeds the maximum prescribed by law by more than fifty per centum,
if the company, with the approval of the commissioner or the supervising agency, shall
determine that removal would cause hardship to such person or family. Any person or
family in occupancy whose income exceeds the maximum prescribed by law shall pay a
rental surcharge in accordance with a schedule of surcharges to be promulgated by the
company with the approval of the commissioner or the supervising agency, as the case
may be, provided, however, such rental surcharge shall in no event exceed fifty per
centum of the existing rent.
4. Twenty-five percent of rental surcharges collected pursuant to this section on account
of rentals payable prior to )uly first, nineteen hundred eighty-one shall be paid by the
company to the municipality which has granted tax exemption pursuant to section thirtythree of this article as a credit against the grant of tax exemption, the value of such tax
exemption and of such credit to be determined on an individual dwelling, nonhousekeeping, aged care accommodation or non-housekeeping accommodations for
handicapped persons unit basis. In the event that such tax exemption has not been
granted, or in the event that a sum equal to the total of ail accrued taxes as to individual
dwelling, non-housekeeping, aged care accommodation or non-housekeeping
accommodations for handicapped persons units where such tax exemption was granted
have been paid to the municipality, the excess if any, of surcharges and all surcharges
imposed after June thirtieth, nineteen hundred eighty-one shall be applied to the
expenses of operation and management as approved by the commissioner or the
supervising agency.
5. Notwithstanding the provisions of this section or of any other general, special or local
law, persons or families living in a project under a lease for ninety-nine years renewable,
or in perpetuity, or by reason of ownership of stock in such company may, with the
approval of the commissioner or of the supervising agency, as the case may be, be
permitted to remain in occupancy for not more than three years after such increase in
income exceeds the maximum prescribed by law by more than fifty per centum unless
such occupancy is extended with the approval of the commissioner or of the supervising
agency, as the case may be. Any such occupant required to remove from the project
because of excessive income as herein provided shall be discharged from liability on any
note, bond or other evidence of indebtedness relating thereto and shall be reimbursed for
all sums paid by such occupant to the company on account of the purchase of stock or
income debentures as a condition of such occupancy.
6. Preference in admission to a project shall be given to families displaced by a limitedprofit housing project.
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7. Preference in admission to a project with an open waiting list, as determined by the

commissioner or the supervising agency, shall be given by a mutual company or an urban
rental company or by the New York state housing finance agency when subleasing
dwellings in projects of such companies pursuant to section forty-four-a of this chapter, to
persons or surviving spouses of persons who i are veterans as such term is defined
pursuant to section eighty-five of the civil service law. For projects with a closed list, as
determined by the commissioner or the supervising agency, such preference shall be
given upon the opening of the waiting list. Notwithstanding the foregoing, persons who
are residing in alimited-profit housing project shall be given first priority for an internal
transfer in the project in which they are residing in accordance with rules and regulations
promulgated by the commissioner or the supervising agency.
7-a. [Redesignated]
7-b. Preference in admission to projects located in a city with a population of one
hundred thousand or more shall be given to members of a police force of such city,
provided such members otherwise qualify for admission and provided, further, that such
city has adopted a local law authorizing such program.
8. Preference in admission to any project or to such portion of any project which has
been specifically designed for occupancy by aged or handicapped persons, as the case
may be, shall be given to such persons.
8-a. A company may rent one or more dwelling units to a social services official or duly
authorized agency, as defined in section three hundred seventy-one of the social services
law, for the operation of agency boarding homes or group homes or to any public agency
as defined in section four hundred sixty-one of the general municipal law which provides
residences and social services to dependent aged persons.
(a) For the purpose of enabling lower income elderly persons to continue in
occupancy without paying rentals in excess of a fair proportion of their income, any
municipality having a population of less than one million is authorized to make and to
contract to make periodic payments to a company in an amount not exceeding the
difference between the rent or carrying charges for the dwellings occupied by such
lower income persons and one-third of their net probable aggregate annual income,
where such rent or carrying charges exceed such one-third of income; provided that
the aggregate amount of periodic payments to be made in accordance with contracts
entered into by the municipality during any fiscal year thereof pursuant to this
subdivision, subdivision seven of section eighty-five-a, section one hundred twentysix-and section five hundred-seventy=seven=a of this chaptershatl not exceed the
aggregate amount of all real property taxes paid or payable during such fiscal year by
all companies organized pursuant to this article, article IV, article V, and article XI of
this chapter and the aggregate estimated receipts of all such companies in such fiscal
year from rental surcharges collected or to be collected pursuant to this chapter.
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(b) Such payments shall be made only on account of a person or family in occupancy
where the head of the household is sixty-two years of age or older and is not a
recipient of public assistance pursuant to the social services law, and where the net
probable aggregate annual income of the person or family in occupancy does not
exceed six thousand five hundred dollars a year. Notwithstanding the provisions of
subdivision twenty-nine of section two of this chapter, net probable aggregate annual
income as used in this subdivision shall mean annual income of family members from
all sources after deduction of federal, state and city income taxes; provided that any
municipality may provide that increases in benefits under the social security act which
take effect after such person or family has assumed occupancy shall not be taken into
account.
(c) A company having a contract with the municipality pursuant to this subdivision
may not collect from persons or families in occupancy on whose account such
payments are made any rentals in excess of the amounts specified in such contract
10. A housing company shall accept federal reimbursement under section eight of the
Housing and Community Development Act of 1974 in lieu of such amount in rent payment
for a person qualifying under such act and residing in a project of such company ~ . A
housing company shall not reject an applicant for an apartment solely on the basis that all
or part of the rent shall be paid under section eight of the Housing and Cornmunity
Development Act of 1974.
il. Every company subject to the provisions of this article shall on a form prescribed by
the commissioner or supervising agency annually certify to such commissioner or
supervising agency that all necessary steps are being undertaken to ensure that all
surcharges due pursuant to this section are being properly billed, collected and remitted.
12. All municipally-aided projects shall post the first and last names of all persons on
each waiting list maintained by such project, in chronological order, by such projects
management office, or, if there is no management office on the site of such municipallyaided project, in such projects lobby.
History
Add, L 1961, ch 803, eff March 1, 1962; amd, L 1962, ch 600, 4; L 1962, ch 828, 1; L
1962, ch 829, 2; L 1963, ch 675; L 1963, ch 795, eff April 26, 1963; L 1964, ch 443, 3; L
1965, ch 973, i, eff July 19, 1965; L 1966, ch 1016; L 1967, ch 781, 3; L 1968, ch 266;
L 1968, cfi858, 8'eff June 22, 1968; L 1968,`cYi 879, 1;' L 1969;'cfi 154, 1',' eff Marcfi''
28, 1969; L 1970, ch 789, ~ 12-15; L 1971, ch 778, eff June 25, 1971; L 1972, ch 410, i
eff May 22, 1972; L 1972, ch 760, 1, eff June 2, 1972; L 1972, ch 870, 1, eff July 1,
1972; L 1973, ch 666, 1; L 1973, ch 921, 1; L 1974, ch 729, 1, eff June 7, 1974; L
1974, ch 730, 1; L 1974, ch 734, 1, eff June 7, 1974; L 1974, ch 895, 1, eff Sept 1,
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1974; L 1975, ch 208, ~ 1-4, eff June 17, 1975; L 1975, ch 851, 2, eff Aug 9, 1975; L
1976, ch 341, 1, 9, 10, eff June S0, 1976; L 1976, ch 343, 1, 2, eff June 10, 1976; L
1976, ch 357, 1, eff June S5, 1976; L 1976, ch 650, ~ 4, eff Sept 1, 1976; L 1981, ch 265,
1, eff June 1G, 1981; L 1981, ch 735, i, eff July 27, 1981; L 1983, ch 219, 7, eff Sept
1, 1983; L 1985, ch 834, 1, eff Nov 30, 1985; L 1985, ch 836, 1, eff Oct 31, 1985; L
1989, ch 229, ~ 1, eff )une 30, 1989; L 1991, ch 700, i, eff Aug Z, 1991; L 1993, ch Z70,
6, eff July 21, 1993; L 1993, ch 566, 1, eff July 28, 1993; L 1996, ch 260, 1, eff Sept 30,
1996; L 2006, ch 179, 6, eff July 26, 2006; L 2007, ch 4Z0, 1, eff Nov 29, 2007; L 2008,
ch 501, 1, eff Jan 2, 2009; L 2009, ch 32Z, 1, eff Aug 11, 2009; L 2010, ch 399, 1, eff
Sept 12, 2010; L 2013, ch 474, 1, eff Nov 13, 2013.
Annotations

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Copy Citations

New York Consolida4ed Laws Service
Article II
31-a. Resale price of shares

Notwithstanding any other provision of this article and subject to any regulation not
inconsistent with this section which may be promulgated by the commissioner or
supervising agency:
(a) The resale price of shares in a mutual company shall be fixed by the mutual
company, subject to the approval of the commissioner or supervising agency and
shall be equal to (1) the consideration the selling tenant-cooperator paid for such
shares and (2) any capital assessments and voluntary capital contributions approved
by the commissioner or supervising agency and paid by the selling tenant-cooperator
to the mutual company, to the extent not already included in the consideration paid
for such shares, and, if established by the mutual company,(3) a proportionate share
of the actual aggregate amortization paid on all existing and prior mortgages on the
project in reduction of total outstanding principal indebtedness during such period as
shall be fixed by the board of directors of the mutual company, to the extent not
already included in the consideration paid for such shares, and (4) reasonable
administrative charges.
(b) The aggregate amount to be paid to the selling tenant-cooperator with respect to
the sale of the'selling tenant-cooperator's shares shall 6e fixed bytFie board of
directors of the mutual company, subject to the approval of the commissioner or
supervising agency, and shall be equal to (1) the consideration the selling tenantcooperator paid for such shares,(2) any capital assessments and voluntary capital
contributions approved by the commissioner or supervising agency and paid by the
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selling tenant-cooperator to the mutual company, to the extent not already included
in the consideration paid for such shares, and (3) a proportionate share of the actual
aggregate amortization paid by the selling tenant-cooperator on all existing and prior
mortgages on the project in reduction of total outstanding principal indebtedness
during such period as shall be fixed by the board of directors pursuant to subdivision
(a) of this section, to the extent not already included in the consideration paid for
such shares. To the extent that a selling tenant-cooperator may be entitled to an
amount less than the resale price of his shares, the difference shall be retained by the
mutual company.
(c) The board of directors may, subject to the approval of the commissioner or
supervising agency, establish a general policy pursuant to which a selling tenantcooperator who had occupied more than one dwelling unit is paid an amount
measured by his proportionate share of the actual aggregate amortization paid during
his period of occupancy on all existing or prior mortgages on the project. To the
extent that a selling tenant-cooperator may be entitled to an amount greater than the
resale price of shares, the difference may be paid to the selling tenant-cooperator by
the mutual company.
(d) The "proportionate share of the actual aggregate amortization paid on all existing
and prior mortgages on the project' referred to in subdivision (a) of this section shall
be in the same ratio to such actual aggregate amortization as the number of shares
held by the selling tenant-cooperator at the time of sale bears to the total number of
shares of issued and outstanding capital stock of the mutual company during such
period.
(e) Nothing contained in this section shall prohibit the continued use of any method
of calculating resale price adopted by a mutual company and approved by the
commissioner or supervising agency prior to the effective date of this section.
History
Add, L 1983, ch 683, 1, eff July 26, 1983.
~ Annotations

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Terms:"Gould" New York Consolidated Laws "Private Housing Finance Law" "article il"
Narrow By: -NoneDa42 and Time: Feb 16, 2016 06:27:53 p.m. EST
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Lexis Advance"'
Research
Document:NY CLS Priv Hous Fin 32-b
Copy Citation
Current Through ?_015 released chapters 1-589
(Vew York Consolidated Laws Service
Priva4e Hosasing Finance Law
Article II
Limifed-Profit Housing Companies
32-b. Annual reports

The commissioner shall, on or before the first day of July in each year, submit a report to
the legislature on the implementation of article two of this chapter by the commissioner
and the supervising agency and the policy included therein. Such report shall include and
not be limited to rent and carrying charge levels, changes therein, operation of the state
capital grant program and federal subsidy programs, tax abatement levels, total capital
outlay, amortization, mortgage interest rates, income levels served by the housing,
surcharge billings and collections and use of surcharge revenues, and vacancy rates. For
the purpose of preparing such report, the commissioner may request, and shall receive,
from any municipality or supervising agency such data as he deems necessary or
desirable and such municipality or supervising agency shall furnish the requested data
within sixty days of such request.
History
Add, L 1978, ch 216, i, eff Aug 31, 1978.
~ Annotations
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Copyright c0 2016 Mattheev Bender, Inc.
a member of the LexiSNexis (TM) Group

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Lexis Advance's
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f~1Y CLS Priv Hous Fin 33

Copy Citation
Current through 20].5 released chapters 7.-589
Flew York Consolidated Laws Service
Article EI
33. Tax exemptions

i.
(a) Upon the consent of the local legislative body of any municipality in which a
project is or is to be located, the real property in a project shall be exempt from local
and municipal taxes, other than assessments for local improvements, to the extent of
all or part of the value of the property included in such project which represents an
increase over the assessed valuation of the real property, both land and
improvements, acquired for the project at the time of its acquisition by the limited profit housing company, provided, however, that the real property in a project
acquired for purposes of rehabilitation shall be exempt to the extent of all or part of
the value of the property included in such project, and further provided that the
amount of such taxes to be paid shall not be less than ten per centum of the annual
shelter rent or carrying charges of such project except that for projects located or to
be located in a city of a population of one million or more, upon the consent of the
local legislative body of the municipality, the amount of such taxes to be paid may be
set at not less than (i) the taxes payable with respect to the real property in such
project with respect to the year nineteen hundred seventy-three, or, (ii) if such
project was not occupied in such year, not less than ten per centum of the annual
shelter rent or carrying charges first established pursuant to subdivision one of
section thirty-one of this article. Shelter rent shall mean the total rents received from
the occupants of a project less the cost of providing to the occupants electricity, gas,
heat and other utilities. Total rents shall include rent supplements and subsidies
received from the federal government, the state or a municipality on behalf of such
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occupants, but shall not include interest reduction payments pursuant to subdivision
(a) of section two hundred one of the Federal Housing and Urban Development Act of
nineteen hundred sixty-eight. The tax exemption shall operate and continue so long
as the mortgage loans of the company, inc/uding any additional mortgage loan the
proceeds of which are used primarily for the residential portion of the project, which
additional loan is approved by the commissioner or the supervising agency, are
outstanding 1 .
(b) Where a municipality acts on behalf of another taxing jurisdiction in assessing
real property for the purpose of taxation, or in levying taxes therefor, the consent of
the local legislative body of such municipality shall have the effect of exempting the
real property in a project from local and municipal taxes, other than assessments for
local improvements, levied by or in behalf of both such taxing jurisdictions.
As used in this paragraph, the term "taxing jurisdiction" means any municipal
corporation or district corporation, including any school district or any special district,
having the power to levy or collect taxes and benefit assessments upon real property,
or in whose behalf such taxes or benefit assessments may be levied or collected.
(c) Notwithstanding the provisions of paragraphs (a) and (b) of this subdivision, the
real property of a state urban development corporation project acquired, owned,
constructed, managed or operated by a company incorporated pursuant to the notfor-profit corporation law and this article shall be entitled to all the benefits provided
by section four hundred twenty-two of the real property tax law. The real property of
a state urban development corporation project, other than a state urban development
corporation project acquired, owned, constructed, managed or operated by a
company incorporated pursuant to the not-for-profit corporation law and this article,
shall be exempt from all local and municipal taxes, other than assessments for local
improvements, to the extent of the value of the property included in such project as
represents an increase over the assessed valuation of the real property, both land and
improvements, acquired for the project on the date of its acquisition by the limitedprofit housing company, provided that the amount of such taxes to be paid shall not
be less than ten per centum of the annual shelter rent or carrying charges of such
project, as defined in paragraph (a) hereof. The tax exemption shall operate and
continue so long as the mortgage loans of such limited profit housing company,
including any additional mortgage loan the proceeds of which are used primarily for
the residential portion of the project, which additional loan is approved by the
commissioner or the supervising agency, are outstanding ~ and the project is
continued to be operated as alimited-profit housing project. If a state urban
development corporation project qualifying for tax exemption pursuant to this
paragraph is'sold, with tfieapprovalòf the commissioners to another limited-profit
housing company, such successor company shall be entitled to all the benefits of this
paragraph. In the event that such sale is to a company incorporated pursuant to the
not-for-profit corporation law and this article, such successor company shall be
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entitled to all the benefits provided by section four hundred twenty-two of the real
property tax law.
(d) Notwithstanding the provisions of paragraphs (a) and (b) of this subdivision,
when a project is financed with a mortgage loan pursuant to this article or article
three of this chapter and (i) there is a participation, new loan or investment pursuant
to section twenty-three-b of this article or (ii) such mortgage loan is assigned,
modified or satisfied pursuant to section twenty-three-a or forty-four-b or subdivision
twenty-two-a of section six hundred fifty-four of this chapter, the real property of the
project shall be exempt from all local and municipal taxes, other than assessments for
local improvements, to the extent of the value of the real property included in such
project which represents an increase over the assessed valuation of the real property,
both land and improvements, acquired for the project on the date of its original
acquisition for the project by the original mortgagor under a mortgage loan pursuant
to this article or article three of this chapter, provided that the amount of taxes to be
paid on the project shall not be less than ten per centum of the annual shelter rent or
carrying charges of such project, as defined in paragraph (a) of this subdivision. Such
tax exemption shall commence in each instance from the date when the project
becomes subject to a mortgage insured by the federal government and shall operate
and continue so long as a mortgage on such project is insured or held by the federal
government or so long as the project is thereafter owned by the federal government
or so long as any residual indebtedness is outstanding, whichever is longer. When
there is a participation, new loan or investment pursuant to section twenty-three-b of
this article, such participation, new loan or investment shall be deemed to be the
equivalent of a federally insured mortgage for purposes of this paragraph. Nothing
contained in this paragraph shall be construed to limit or otherwise impair the
benefits available to any company eligible for exemption from taxation pursuant to
section thirty-one or section thirty-six-a of this article, section four hundred twentytwo or section four hundred sixty-seven-c of the real property tax law, or section fiftyeight of the public housing law. The foregoing shall not be deemed to authorize any
company to receive the benefits of any exemption from taxation in contravention of
the provisions of section two of article eighteen of the constitution.
(e) Notwithstanding the provisions of paragraph (a) of this subdivision, a
municipality, with the approval of the local legislative body, may contract to exclude
all or part of any rent subsidies received from the federal government pursuant to
section eight of the United States Housing Act of nineteen hundred thirty-seven as
amended in the computation of total rents received.
(f) Notwithstanding the provisions of paragraph (a) of this subdivision, if the number
ofunits occupied by persons receiving the benefit of rental assistance payments from
the federal government pursuant to section eight of the United States Housing Act of
nineteen hundred thirty-seven, as amended, with respect to any project increases by
more than one hundred percent within any twelve consecutive months prior to
nineteen hundred eighty-five over the number of units for which such subsidies were
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available during the preceding twelve consecutive months or as July first, nineteen
hundred eighty, whichever is later, taxes payable for such additional subsidized units
and subsequent units subsidized in the same manner shall be based solely upon that
portion of total rents received on account of such additional subsidized units that is
not funded by such rental assistance payments, provided, however, that no project
shall receive such additional tax exemption (i) unless a minimum of seventeen
percent of the units in the project receive the benefit of such subsidies, or (ii) if any
mortgage on such project is insured or held by the federal government or if the
project is owned by the federal government. The amount of exemption to which a
project is entitled pursuant to this paragraph shall be certified annually by the
commissioner or the supervising agency, as the case may be.
2. Notwithstanding the provisions of subdivision one hereof, whenever a dwelling in a
project is leased to the New York state housing finance agency pursuant to the provisions
of section forty-four-a of this chapter, so much of the assessed value of such project
attributable to such dwelling (including a pro rata portion of the value of the land and
common spaces) as represents an increase over the proportionate assessed value of the
real property, both land and improvements, acquired for such project at the time of
original acquisition therefor, shall be exempt during the period of such lease from taxation
for county, city, town, village and school district purposes and special ad valorem levies;
provided that if in any year the aggregate amount of such taxes and levies that would
have been attributable to such dwelling but for the exemption provided by this subdivision
exceeds the amount payable out of the low rent lease account pursuant to subdivision
three of section forty-four-a of this chapter with respect to the agency's rent obligation for
such dwelling, the agency shall make proportional payments in lieu of such taxes and
levies to the appropriate county, city, town, village, school district or special district, or
any combination thereof as the case may be, in an aggregate amount equal to one half of
the sum of (a) the amount of such excess and (b) the amount, if any, by which the rent
paid to the agency under the sublease for such dwelling exceeds the agency's rent
obligation for such dwelling. Nothing contained in this subdivision shall preclude the
increase of the taxable assessed value attributable to such dwellings as a result of a net
increase in the assessed valuation of the taxable property in the assessing unit as a result
of assessing such property at a higher ratio of full value.
3. Notwithstanding the provisions of subdivision one hereof, whenever a dwelling in a
project is leased to an authority, pursuant to the provisions of sections seventeen and
thirty-one of this chapter, so much of the assessed value of such project attributable to
such dwelling (including a pro rata portion of the value of the land and common spaces)
as represents an increase over the proportionate assessed value of the real property, both
land and improvements, acquired for such project at the time of original acquisition
therefor, shall be exempt during the period of such lease from taxation for county, city,
town, village and school district purposes and special ad valorem levies. Nothing
contained in this subdivision shall preclude the increase of the taxable assessed value
attributable to such dwelling as a result of a net increase in the assessed valuation of the
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taxable property in the assessing unit as a result of assessing such property at a higher
ratio of full value.
4. Notwithstanding the provisions of subdivision one hereof, when a mutual company is
organized under this article to facilitate the acquisition of a building by residents thereof,
the amount of local and municipal taxes, other than assessments for local improvements,
to be paid on the real property included in such project, both land and improvements,
shall not exceed twenty per centum of the annual shelter rent or carrying charges of such
project, as defined in paragraph (a) of subdivision one hereof; provided, however, that
where such acquisition of a building by residents thereof involves the financing of
rehabilitation or other improvement as well as acquisition, upon the consent of the local
legislative body of the municipality in which the project is located the amount of such
taxes may be further reduced provided that such amount shall not be less than ten per
centum of the annual shelter rent or carrying charges of the project, as defined in
paragraph (a) of subdivision one hereof; or the company may in lieu of requesting such
consent apply for the benefits of the local law, if any, enacted pursuant to section four
hundred eighty-nine of the real property tax law. Such tax exemption, if any, granted
pursuant to this article shall operate and continue so long as a loan made under this
article or any subsequent loan approved by the commissioner or the supervising agency
to enhance the residential portion of the project and the project is continued to be
operated for the purposes set forth in this article is outstanding ~ .
5. Bonds, mortgages, notes, income debentures and obligations of a company are
declared to be issued for a public purpose and to be public instrumentalities and together
with interest thereon shall be exempt from tax including but not limited to the mortgage
recording taxes imposed by article eleven of the tax law.
6. Any project that received a tax exemption under paragraphs (a), (c) and (d) of
subdivision one, and subdivision four of this section may, upon the expiration of the tax
exemption period, be granted an additional tax exemption period of up to fifty years, or
until such time as the project is no longer operated under the restrictions and for the
purposes set forth in this article, whichever is sooner.
History
Add, L 1961, ch 803, eff March 1, 1962; amd, L 1964, ch 272, 4, eff Jan 1, 1965; L 1965,
ch 724, ~ 2, eff July 2, 1965; L 1967, ch 653, 1; L 1968, ch 174, 9; L 1968, ch 858, 9,
eff June 22, 1968; L 1970, ch 281, 12, eff Sept 1, 1970; L 1971, ch 1153, 6, eff July 6,
1971; L 1972, ch 841, ~ 1; LY974, ch 733, 1, efF]une 7, 1974, applicable to taxes payable
on or after July 1, 1974; L 1976, ch 341, 11, eff June 10, 1976; L 1976, ch 499, 3, eff
July 8, 1976; L 1977, ch 744, 8, eff Aug 5, 1977, retroactive to Apr 12, 1977; L 1980, ch
367, 2, 3, eff June 23, 1980; L 1988, ch 789, 1-3, eff Dec 29, 1988 and deemed eff
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July 1, 1987; L 1989, ch 229, 2-4, eff June 30, 1989 and deemed eff July i, 1987; L
1991, ch 688, 1, eff Aug 2, 1991; L 2003, ch 389, 1, eff Aug 19, 2003.
Annotations

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Terms: "Gould" New York Consolidated Laws "Private Housing Finance haw" "article II"
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Article II
LimiCed-Profit Housing Companies
34. Foreclosure and judgments

1. Any action or proceeding to foreclose a mortgage upon a company project, shall be in
accordance with the applicable provisions of section ninety-four of this chapter.
2. In the event of an unsatisfied judgment against a company any action not pertaining
to the collection of a mort9a9e indebtedness, shall be in accordance with the applicable
provision of section ninety-five of this chapter.
3. For the purposes of this section, wherever reference is made in sections ninety-four
and ninety-five of this chapter to a housing company, it shall be deemed to refer to a
company as defined in this article.
History
Add, L 1961, ch 803, eff Mar 1, 1962.
Annotations
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Article II
35. Voluntary dissolution

1. A company aided by a loan made prior to May first, nineteen hundred fifty-nine, may
voluntarily be dissolved, with the consent of the commissioner or of the supervising
agency, as the case may be, not less than thirty-five years after the occupancy date upon
the payment in full of the remaining balance of principal and interest due and unpaid
upon the mortgage held by the state or a municipality pursuant to this article and
payment to the municipality of a sum equal to the total of all accrued taxes for which tax
exemption was granted and received pursuant to section thirty-three of this article,
provided however that such payment of accrued taxes shall be waived if a company is
voluntarily dissolved subsequent to the original maturity date of any mortgage held by
the state or a municipality pursuant to this article.
2. A company aided by a loan made after May first, nineteen hundred fifty-nine, may
voluntarily be dissolved, without the consent of the commissioner or of the supervising
agency, as the case may be, not less than twenty years after the occupancy date upon
the payment in full of the remaining balance of principal and interest due and unpaid
upon the mortgage or mortgages and of any and all expenses incurred in effecting such
voluntary dissolution.
3. Upon such dissolution, title to the project may be conveyed in fee to the owner or
owners of its capital stock or to any corporation designated by it or them for the purpose,
or the company may be reconstituted pursuant to appropriate laws relating to the
formation and conduct of corporations, provided, however, that prior to any such
dissolution and conveyance or reconstitution, payment shall be made of all current
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operating expenses, taxes, indebtedness and all accrued interest thereon and the par
value of and accrued dividends on the outstanding stock of such company. If after making
such payments, and after conveyance of the project, a surplus remains in the treasury of
the company, such surplus, except in the case of a project aided by a state loan made
after May first, nineteen hundred fifty-nine, shall upon dissolution, be paid into the
general fund of the municipality which granted tax exemption. After such dissolution and
conveyance, or such reconstitution, the provisions of this article shall become and be
inapplicable to any such project and its owner or owners and any tax exemption granted
with respect to such project pursuant to section thirty-three hereof shall cease and
terminate.
Ca
(a) Notwithstanding any contrary provision of subdivision one or three of this section
or of any other law or local law, consent to dissolve a company aided by a loan made
prior to May first, nineteen hundred fifty-nine shall be given by the commissioner or
the supervising agency, as the case may be, thirty-five years or more after the
occupancy date, provided that:
(i) such company's project or projects is or are located in a city of less than one
million and more than three hundred thousand persons;
(ii) the dissolution of such company is part of a refinancing plan to continue the
operation of the existing project or projects under this chapter by a new company
organized pursuant to the provisions of this article in corporate, partnership, or
individual ownership form as the existing stockholders shall agree;
(iii) if the refinancing is done by a new first mortgage, the new company shall be
bound to pay from the proceeds of such refinancing the remaining balance of the
principal and interest on the original mortgage and any interest due to debenture
holders if such interest cannot first be paid out of the original company's surplus
or reserves; or if the refinancing is done by a second mortgage, the new company
shall be bound to pay from the proceeds of such refinancing the interest due to
debenture holders if such interest cannot first be paid out of the original
company's surplus or reserves; and
(iv) the new company shall be bound to use at least fifty percent of the net
proceeds, which remain from such refinancing after having paid the legal fees and
development costs connected therewith and after having made the payments
required by subparagraph (iii) of this paragraph, to finance the costs of
refurbishing the existing housing units of the project, or to build and operate
under this chaptee additional-housingvnitsfor persons of low or moderate income
or for disabled persons, within the same municipality wherein the original project
is or projects are located, or to do both such refurbishing of existing units and
such building and operating of such additional units; any portion of the net
proceeds remaining after utilization of at least fifty percent thereof for the
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foregoing purposes shall be distributed or used as the stockholders, partners or
sole owner (as the case may be) of the new company shall decide.
(b) The New York state housing finance agency and the state of New York mortgage
agency are hereby authorized and empowered to finance such first or second
mortgages for the foregoing refinancing purposes upon such terms and conditions as
each such agency deems appropriate.
(c) A company which is voluntarily dissolved in accordance with this subdivision shall
not be required to pay the taxes referred to in subdivision one of this section nor any
surplus remaining in its treasury as referred to in subdivision three of this section to
the municipality which grants the tax abatement for such project or projects, but
instead, such surplus and ail reserve accounts and debenture rights, titles, interests,
contracts, accounts receivable, accounts payable, and all other assets and liabilities of
the dissolved company shall be transferred to the new company organized for such
refinancing purposes pursuant to such refinancing plan, and such new company shall
be considered for all the purposes of this chapter as a company aided by a loan made
subsequent to May first, nineteen hundred fifty-nine, with the first date of occupancy
deemed to be the date of the closing of the new first or the second mortgage entered
into as part of the refinancing plan described in subparagraphs (ii), (iii) and (iv) of
paragraph (a) of this subdivision; and any tax abatement granted by such
municipality for such project or projects shall continue to be applied unless or until
such municipality shall act to extend, modify, enlarge or remove such tax abatement.
History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1989, ch 229, 5, eff June 30, 1989; L 1993,
ch 470, 1, eff July 26, 1993.
~ Annotations

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Terms: "Gould" New York Consolidated Laws "Private Housing Finance Law" "article ii"
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Article I%
Limited-ProfiF FBousing Companies
36. Sale of project prior to termination of tax exemption

1. Except as otherwise provided in this article and prior to the expiration of thirty-five
years from the date of occupancy, a project, other than a project aided by a loan made
after May first, nineteen hundred fifty-nine, shall not be sold except to a company
organized pursuant to the provisions of this article; prior to the expiration of twenty years
from the date of occupancy, a project aided by a loan made after May first, nineteen
hundred fifty-nine, shall not be sold except to a company organized pursuant to the
provisions of this article. Such successor company shall acquire such project subject to all
the provisions of the loan and mortgage contract and the provisions of this article, and
shall be entitled to all the benefits provided in such contract or granted under this article,
and a company so conveying ail its projects may be dissolved with the consent of the
commissioner or the supervising agency, as the case may be.
2. In the event of any sale described in this section, the stockholders of the dissolving
company shall in no event receive more than the par value of their stock with accrued
and unpaid dividends upon such stock.
History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1962, ch 625, 4; L 1964, ch 428, 2, eff Apr
10, 1964.
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Annotations

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Con4en4 Type: Statutes and Legislation

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New York ConsoiidaCed Laws Service
Article II
36-a. Additional powers of municipalities

In addition to any other powers granted to a municipality by law, and notwithstanding the
provisions of any other law, a municipality acting by its local legislative body shall have
power:
1. To undertake, plan, develop, construct or enter into contracts for the planning,
development or construction of, or to own one or more projects or any part thereof,
or to engage in one or more of such activities in respect to one or more projects or
any par[ thereof. For any of the purposes of this subdivision, a municipality may
contract either with a housing company incorporated under this article or with a
housing development fund company incorporated pursuant to article eleven of this
chapter.
2.
(a) Acquire by purchase, gift, devise, lease, condemnation or otherwise, in
accordance with the provisions of the appropriate general, special or local law
applicable to the acquisition of real or personal property by such municipality, real
or personal property or any interest therein necessary for or incidental to a
project, including but not limited to air rights, and easements or other rights of
user necessary for the use and development of such air rights, to be developed as
air rights sites for a project; provided, however, that the acquisition of any air
rights over railroad tracks, rights of way or facilities and easements or other
rights of user necessary for the use and development of such air rights are to be
subject to the provision of section fifty-one-a of the railroad law. The acquisition
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of real property pursuant to a plan shall in every case be deemed to be and

constitute a continuous rather than separate takings.
(b) Property so acquired by a municipality shall be exempt from taxation until
sold, leased for a term not exceeding ninety-nine years or otherwise disposed of
in accordance with the provisions of this section; provided however, that any such
municipality shall have the power and authority, with respect to such property, to
pay or transfer, out of funds available to it for the effectuating of such program or
project annual sums in lieu of taxes to any taxing jurisdiction providing services to
the project area, or to the part or portion thereof within such taxing jurisdiction,
in order that no such taxing jurisdiction shall suffer an inequitable loss of revenue
by virtue of such project; provided, further, that the amount so paid or
transferred for any year with respect to any such property shall not exceed the
lesser of (i) the sum last levied for the benefit of such taxing jurisdiction as an
annual tax on such property prior to the time of its acquisition for project
purposes or (2) such amount as shall be approved by the commissioner pursuant
to such rules, regulations, limitations and conditions as he may prescribe, as an
eligible and proper charge against such project. Upon the sale, lease or
disposition of such property to any person, firm or corporation, not entitled to an
exemption from taxation or entitled to only a partial tax exemption such property
shall immediately become subject to taxation in whole or in part, as the case may
be, and shall be taxed pro rata for the unexpired portion of the taxable year.
As used in this paragraph, the term "taxing jurisdiction" means any municipal
3. To sell or lease for a term not exceeding ninety-nine years any such project, or
part thereof, at any stage before or at the date of or after the physical completion of
such project, to a company which will undertake, plan, construct, own, manage or
operate such project in accordance with the plan and the provisions of this article. In
the event of a sale or lease of any such project prior to the physical completion
thereof, the municipality may agree to complete and may complete construction and
development of such project or cause the same to be completed. And such sale or
lease may be made without public bidding, public sale or public offering pursuant to
such negotiated contract, agreement or lease, containing such provisions, limitations,
requirements, terms and conditions, price or rental as the governing body of the
municipality may deem necessary or desirable to effectuate the plan and the public
policy and public purposes described in sections eleven and eleven-a of this article.
4. Notwithstanding the provisions of section thirty-three of this article the real
property in a project sold or leased as provided in this section, when the transfer
thereunder becomes effective, shall be exempt from local and municipal taxes, other
than assessments for local improvements to such extent as may be granted by the
local legislative body of the municipality. The tax exemption shall operate and
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continue so long as capital loans of the company to which such project shall have
been sold or leased or any additional loan the proceeds of which are p~imari/y used
for the residential portion of the project, which additional loan is approved by the
commissioner or the supervising agency are outstanding.
Notes, bonds, mortgages and other obligations of such a company are declared to be
issued for a public purpose and to be public instrumentalities and, together with
interest thereon, shall be exempt from tax.
5. The provisions of section thirteen of this article requiring the approval by the
commissioner of housing of the persons incorporating alimited-profit housing
company and the provisions of section fourteen of this article requiring the consent of
the commissioner of housing to the filing of the certificate of incorporation of such a
company in the office of the secretary of state and the amendment thereof shall not
apply to a corporation created pursuant to this article on a cooperative basis for the
purchase or lease of a project pursuant to this section; nor shall any of the provisions
of this article conferring upon the commissioner of housing any powers in respect of
limited-profit housing companies apply to such a corporation. The application of this
subdivision shall be limited to corporations undertaking a project with the aid of a
municipal loan under this article.
6. A project or part of a project sold or leased to a housing company pursuant to the
provisions of this section thirty-six-a shall be owned or operated by such housing
company in accordance with the provisions of this article and in accordance with an
agreement of sale or lease to be entered into by the municipality and such housing
company. Each such agreement shall contain, in addition to such other terms and
conditions as may lawfully be agreed upon by the parties, the following provisions,
which shall be subject to any approvals which may be required by this article:
(a) Establishing a schedule of maximum rents which may be charged by the
housing company.
(b) Prescribing the method by which tenants are to be selected for the project
and criteria of tenant eligibility.
(c) Any such agreement of lease may provide for the transfer of title of the real
property so leased to the housing company at the end of the term or lease.
7. A housing company shall have the power, in addition to any other powers under
this article to enter into and carry out the provisions of any agreement authorized
under this section or under section twenty-three-a or twenty-three-b of this article,
and to enter into and carry out agreements in order to obtain insurance by the federal
government of a mortgage for the purpose of refinancing all or any part of a
mortgage loan pursuant to section twenty-three of this article.
8. Any project that received a tax exemption under this section may, upon the expiration
of the tax exemption period, be granted an additional tax exemption period of up to fifty
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years, or until such time as the project is no longer operated under the restrictions and
for the purposes set forth in this article, whichever is sooner.
History
Add, L 1968, ch lOS9, 6, eff June 22, 1968; L 1977, ch 744, 9, eff Aug 5, 1977,
retroactive to Apr 12, 1977; L 1970, ch 903, 2, eff May 18, 1970; L 1976, ch 23, g 7, eff
March 9, 1976; L 1976, ch 713, 1, eff July 24, 1976; L 1977, ch 744, ~ 9, eff Aug 5, 1977,
retroactive to Apr 12, 1977; L 1958, ch 789, 4, eff Dec 29, 1988 and deemed eff July 1,
1987; L 1989, ch 229, 6, eff June 30, 1989 and deemed eff July 1, 1987; L 2003, ch 389,
2, eff Aug 19, 2003.
Annotations

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Article II
limited-Profit Housing Companies
37. Separability clause

1. Except as specifically provided in this article, nothing contained therein shall be
deemed to limit or restrict any power or authority granted to banking institutions,
foundations, labor unions, veterans' organizations, or insurance companies or to any
other corporation or to any fiduciary by any other provision of law heretofore or hereafter
enacted.
2. If any clause, sentence, paragraph, section or part of this article 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, section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
History
Add, L 1961, ch 803, eff Mar i, 1962.
Annotations
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Terms: "Gould" New York Consolidated Laws "Private Housing Finance Law "article II"
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DOCUMENT 5
PRIVATE HOUSING FINANCING LAW:
CHAPTER 44B, ARTICLE 5REDEVELOPMENT COMPANIES
-5-
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Document:NY CLS Priv Hous Fin, Art. V Note
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Article V
Redevelopment Companies
Article V Redevelopment Companies
History
Add, L 1961, ch 803, eff Mar 1, 1962.
~ Annotations

Ail rights reserved All rights reserved.

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fdY CLS Priv Flous Fin 100

Copy Citation
Current Through 2015 released chapters 1-589

Privafe Mousing Finance Law
Article V
100. Short title

This article shall be known and may be cited and referred to as the "Redevelopment
Companies Law."
History
Add, L 1961, ch 803, eff Mar i, 1962.
Annotations

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Privafie Housing Finance Law
Article d
101. Policy of state and purpose of act

It is hereby declared that in certain areas of municipalities located within this state there
exist substandard conditions and insanitary housing conditions owing to obsolescence,
deterioration and dilapidation of buildings, or excessive land coverage, lack of planning, of
public facilities, of sufficient light, air and space, and improper design and arrangement of
living quarters; that there is not in such areas a sufficient supply of adequate, safe and
sanitary dwelling accommodations properly planned and related to public facilities; that
modern standards of urban life require the housing be related to adequate and convenient
public facilities; that the aforesaid substandard and insanitary conditions depress and
destroy the economic value of large areas and by impairing the value of private
investments threaten the sources of public revenues; that the public interest requires the
clearance, replanning, reconstruction and neighborhood rehabilitation of such substandard
and insanitary areas, together with adequate provision for recreational and other facilities
incidental and appurtenant thereto according to the requirements of modern urban life
and that such clearance, replanning, reconstruction and neighborhood rehabilitation are
essential to the protection of the financial stability of such municipalities; that in order to
protect the sources of public revenue it is necessary to modernize the physical plan and
conditions of urban life; that these conditions cannot be remedied by the ordinary
operations of private enterprise; that provision must be made to encourage the
investment of funds in corporations, partnerships and trusts engaged in providing
redevelopment facilities to be constructed according to the requirements of city planning
and in effectuation of official city plans and regulated by law as to profits, dividends and
disposition of their property or franchises; that provision must be made to enable
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insurance companies to provide such facilities, subject to regulation by law as to the

return from such facilities and the disposition of property acquired for such purpose; and
that provision must also be made for the acquisition for such corporations, partnerships,
limited liability companies and trusts and companies at fair prices of real property
required for such purposes in substandard areas and for public assistance of such
corporations, partnerships and trusts and such companies by the granting of partial tax
exemptions; that the cooperation of the state and its subdivisions is necessary to
accomplish such purposes; that the clearance, replanning and reconstruction,
rehabilitation and modernization of substandard and insanitary areas and the provision of
adequate, safe, sanitary and properly planned housing accommodations in effectuation of
official city plans by such corporations, partnerships, limited liability companies and trusts
and such companies in these areas are public uses and purposes for which private
property may be acquired for such corporations, partnerships, limited liability companies
and trusts and such companies and partial tax exemption granted for such corporations,
partnerships, limited liability companies and trusts and such companies; that these
conditions require the creation of the agencies, instrumentalities, corporations,
partnerships and trusts hereinafter prescribed for the purpose of attaining the ends herein
recited; and the necessity in the public interest for the provisions hereinafter enacted is
hereby declared as a matter of legislative determination.
History
Add, L 1961, ch 803; amd, L 1942, ch 845, 2; L 1968, ch 516, 1, eff June 5, 1968; L
1996, ch 723, 1, eff ]an 30, 1997.
~ Annotations

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Current Through 2015 released chapters 1-589

Privake Housing Finance Law
ArCicle V
102. Definitions
As used in this article, the following terms shall mean and include:
1. "Project." A specific work or improvement to effectuate all or any part of a plan
including lands, buildings and improvements acquired, owned, constructed, managed
or operated in an area by a redevelopment company or an insurance company
providing dwelling accommodations pursuant to this article and such business,
commercial, cultural or recreational facilities appurtenant thereto as may be approved
pursuant to section one hundred fourteen of this article.
2. "Supervising agency." The municipal comptroller in a municipality having a
comptroller; in a municipality having no comptroller the chief financial officer of such
municipality; except that in the city of New York it shall be the department of housing
preservation and development. However, as to any insurance company providing
dwelling accommodations pursuant to this article, or if any of the stock and income
debenture certificates having voting power of a redevelopment company are or are to
be issued to one or more insurance companies, the term shall mean only the
superintendent of financial services.
3. "Local and municipal taxes." Taxes levied by a county, city, village, town, school
and special district but shall not include assessments for local improvements.
3-a. "Redevelopment company." A corporation, partnership (general or limited),
limited liability companies or trust created as provided in section one hundred three of
this article.
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4. "Capital." In the case of a corporation, the capital shares of that corporation for
the time being issued and outstanding; in the case of a partnership, the aggregate
value of the money and property contributed by the partners for the purpose of
carrying on the business of the partnership, so far as such is credited to the partners
on capital account; in the case of a limited liability company, the aggregate value of
the money and property contributed by the members for the purpose of carrying on
the business of the company; and in the case of a trust, the aggregate value of the
money or property subject to the trust.
5. "Federally-aided mortgage." A mortgage loan made or insured by the federal
government or any agency or instrumentality thereof or a mortgage loan entered into
in conjunction with a housing assistance payments contract in connection with new
construction or substantial rehabilitation or moderate rehabilitation pursuant to
section eight of the United States housing act of 1937, as amended.
6. The term "mutual" when applied to a redevelopment company shall mean a
redevelopment company which is a corporation operated exclusively for the benefit of
the persons or families who are entitled to occupancy in a project of such
redevelopment company by reason of ownership of shares in such redevelopment
company.
History
Add, L 1961, ch 803; amd, L 1968, ch 516, 2, eff June 5, 1968; L 1968, ch 717, eff June
16, 1968; L 1969, ch 1121; L 1970, ch 522, eff May 8, 1970; L 1977, ch 567; L 1978, ch
316; L 1978, ch 655, 66, eff July 25, 1978; L 1981, ch 804, 1, eff July 27, 1981; L 1996,
ch 723, 2, eff Jan 30, 1997; L 2006, ch 94, 7, eff June 7, 2006; L 2011, ch 62, 104
(Part A), eff Oct 3, 2011.
~ Annotations

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Private blousing Finance Law
Article V
103. Redevelopment companies; how created

1. A redevelopment company may be created as a corporation by three or more persons
signing, acknowledging and filing a certificate which shall contain:
(1) The name of the proposed redevelopment company.
(2) The purposes for which it is to be formed which shall be as follows: To acquire
one or more areas under a plan or plans, and to construct, own, maintain, operate,
sell and convey projects pursuant to the terms and provisions of this article.
(3) The amount of the capital shares, and if any be preferred shares, the preference
thereof.
(4) The number of shares of which the capital shall consist, all of which shall have a
par value.
(5) The city, village or town in which its principal business office is to be located; if
located in the city of New York, the borough thereof in which it is to be located.
(6) Its duration, which shall not be less than twenty years.
(7) The number of directors, which shall not 6e less than three and who need not be
shareholders. One additional director may be designated by the supervising agency,
and, in the case of all mutual companies, such additional director shall be designated
by the supervising agency at the creation of the company and shall serve from the
time of such designation at least until a board of directors has been elected by the
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tenants entitled to occupancy in the project by reason of ownership of shares in such

company. The directors appointed by the supervising agency need not meet any of
the qualifications prescribed in the certificate of incorporation or the by-laws, and in
the absence of fraud or bad faith shall not be personally liable for the debts,
obligations or liabilities of the corporation.
(8) The names and post-office addresses of the directors for the first year.
(9) The names and post-office addresses of the subscribers to the certificate and a
statement of the number of shares which each agrees to take in the redevelopment
company.
(10) A provision that, so long as this article shall remain applicable to any project of
the redevelopment company, the real property of the redevelopment company shall
not be sold, transferred or assigned except as permitted by the terms and provisions
of this article.
(11) A declaration that all of the subscribers to the certificate are of full age; that at
least two-thirds of them are citizens of the United States and that at least one of
them is a resident of the state of New York; that at least one of the persons named as
a director is a citizen of the United States and a resident of the state of New York.
(12) A declaration that the redevelopment company has been organized to serve a
public purpose and that it shall be and remain subject to the supervision and control
of the supervising agency except as provided in this article, so long as this article
remains applicable to any project of the redevelopment company; that all real and
personal property acquired by it and all structures erected by it, shall be deemed to
be acquired or created for the promotion of the purposes of this article.
(13) A declaration that, upon the dissolution of the company pursuant to the
provisions of subdivision one of section one hundred twenty-three, the property may
be conveyed in fee as provided in said subdivision.
(14) A declaration that mortgage indebtedness, income debenture certificates and
capital of the redevelopment company may be retired if, as and when there shall be
funds available for amortization purposes in the treasury of the redevelopment
company.
(15) A declaration that in the event of a violation by a company of a provision of its
certificate or of law or any rules and regulations promulgated pursuant to the
provisions of this article, the supervising agency may, by written notice, as provided
by this article, advise the directors, partners or trustees, as the case may be, of the
company of its desire to remove any or all of the existing directors or to appoint a
manager or managers of the partnership or trust who shall exclusively exercise all of
the powers of such partners or trustees, as the case may be, for the duration of the
appointment of such manager or managers. In the event that the company fails to
comply with the requirements of the supervising agency within thirty days from date
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of mailing of said written notice, the supervising agency may, with the written
approval of any mortgagee and without further notice to the company or to its
directors, partners or trustees, as the case may be, remove such directors in the case
of a redevelopment company which is a corporation or any of them from office and
appoint such person or persons as the supervising agency, in its sole discretion,
deems advisable, including officers or employees of the supervising agency, as new
directors to serve in the places of those removed or appoint such manager or
managers in the case of a redevelopment company which is a partnersnip
[partnership]i,* a; or trust who shall exclusively exercise ail of the powers of such
partners or trustees, as the case may be. Directors or managers so appointed need
not meet qualifications which may be prescribed by the certificate, by-laws,
partnership or trust agreement, or other rules or regulations of the company. In the
absence of fraud or bad faith, directors or managers so appointed shall not be
personally liable for debts, obligations or liabilities of the company. Directors or
managers so appointed shall serve only for a period coexistent with the duration of
such violation or until the supervising agency is assured, in a manner satisfactory to
it, against violations of a similar nature. Officers or employees of the supervising
agency who are appointed as such directors or managers shall serve in such capacity
without compensation.
(16) A designation of the secretary of state as agent of the corporation upon whom
process against it may be served and the post office address within or without this
state to which the secretary of state shall mail a copy of any process against it served
upon him.
(17) If the corporation is to have a registered agent, his name and address within
this state and a statement that the registered agent is to be the agent of the
corporation upon whom process against it may be served.
2.
(1) A redevelopment company may be created as a general partnership by the
partners signing, acknowledging and filing as hereinafter provided a certificate which
shall contain:
(a) The matters set out in paragraphs one, two, five, six, ten, twelve, thirteen,
fourteen and fifteen of subdivision one of this section.
(b) The names and post-office addresses of the partners.
(c) A statement of the capital of the partnership.
(d) As to all the partners who are individuals, a declaration that (i) all such
partners are of full age; (ii) all of them if there be no more than two and at least
two-thirds of them if there be more than two are citizens of the United States;
and (iii) at least one of them is a resident of the state of New York; and as to all
partners which are corporations, a declaration that each such corporation is either
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incorporated under the laws of the state of New York or is a foreign corporation
duly authorized to do business in the state of New York.
(2) A redevelopment company may be created as a limited partnership by the
partners filing as provided herein a copy of the certificate filed with the county clerk
pursuant to article eight of the partnership law. The partners shall at the same time
sign, acknowledge and file a further certificate which shall contain the matters set out
in paragraphs one, two, five, six, ten, twelve, thirteen, fourteen and fifteen of
subdivision one of this section and a declaration as to all of the general partners
which shall comply with the requirements of subparagraph (d) of paragraph one of
this subdivision.
2-a. A redevelopment company may be created as a limited liability company by the
members signing, acknowledging and filing as hereinafter provided a certificate which
shall contain:
(1) The matters set out in paragraphs one, two, five, six, ten, twelve, thirteen,
(2) The names and post-office addresses of the members.
(3) A statement of the capital of the limited liability company.
(4) As to ail the members who are individuals, a declaration that (a) all such
members are of full age;(b) all of them if there be no more than two and at least
two-thirds of them if there be more than two are citizens of the United States; and (c)
at least one of them is a resident of the state of New York; and as to all members
which are corporations, a declaration that each such corporation is either incorporated
under the laws of the state of New York or is a foreign corporation duly authorized to
do business in the state of New York.
3. A redevelopment company may be created as a trust by the settlor signing,
acknowledging and filing as hereinafter provided a certificate which shall contain:
(1) The matters set out in paragraphs one, two, five, six, ten, twelve, thirteen,
(2) A statement of the capital of the trust.
(3) The name and post-office address of the trustee or trustees
(4) The name and post-office address of any person having a beneficial interest,
whether vested or contingent, under the trust.
(5) As to all the trustees who are individuals, a declaration that (i) all such trustees
are of full age; (ii) that all of them if there be no more than two and at IeasY twothirds of them if there be more than two are citizens of the United States; and (iii)
that at least one of them is a resident of the state of New York; and as to all trustees
which are corporations, a declaration that each such corporation is either incorporated
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under the laws of the state of New York or is a foreign corporation duly authorized to
do business in the state of New York.
4. A certificate made pursuant to this section shall further contain a declaration that after
providing for all expenses, taxes and assessments, there shall be paid annually out of the
earnings of the redevelopment company, a sum for interest on and amortization of any
mortgage indebtedness and depreciation charges if, when and to the extent deemed
necessary by the supervising agency, plus interest not exceeding six per centum on
outstanding income debentures and a distribution to the shareholders, to the partners or
to the beneficiaries of the trust having interests vested in possession, as the case may be,
not exceeding six per centum of the total of the capital; that the obligation in respect of
such payments shall be cumulative, and any deficiency in interest, amortization,
depreciation and distribution in any year shall be paid either from any cash surplus
derived from earnings remaining in the treasury of the redevelopment company in excess
of the amount necessary to provide such cumulative annual sums or from the first
available earnings in subsequent years; and that any cash surplus derived from earnings
remaining in the treasury of the redevelopment company in excess of the amount
necessary to provide such cumulative annual sums shall upon the dissolution of, or in the
case of the redevelopment company which is a trust for the termination of, the company
be paid into the general fund of the municipality.
5. A certificate made pursuant to the provisions of this section may provide that in the
event that income debenture certificates are issued by the redevelopment company, the
owners thereof may be given the same right to vote as they would have if possessed of
shares of equivalent par value in the case of a corporation or if they had contributed
capital in the case of a partnership, or had a beneficial interest under the trust vested in
the case of a trust, of an amount equal to the amount of the income debenture
certificates held by them.
If provision is made for the issue of income debenture certificates, interest shall be paid
by the redevelopment company on income debenture certificates only out of net earnings
of the redevelopment company that would be applicable to payment of distributions if
there were no income debentures.
History
Add, L 1961, ch 803, eff Mar 1, 1962; L 1966, ch 604; L 1968, ch 516, 3, eff June 5, 1968;
L 1970, ch 22, eff Feb 24, 1970; L 1970, ch 33Z, eff Sept 1, 1970; L 1971, ch 246, eff May
11, 1971; L 1996, ch 723, 3, eff )an 30, 1997.
Annotations
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Article V
Redevelogmenf Companies
104. Consent of supervising agency to creation of

redevelopment companies
A certificate or a copy of a certificate made pursuant to section one hundred three of this
article shall be presented for filing to the secretary of state in the case of a corporation or
limited liability company and to the supervising agency in the case of a partnership or
trust. No certificate or any amendment thereto shall be filed without the prior written
consent of the supervising agency. Such consent of the supervising agency shall not be
given in the case of a partnership (general or limited), a limited liability company or a
trust unless there has been filed with the supervising agency a partnership agreement,
operating agreement or trust agreement, as the case may be, the terms and conditions of
which shall be subject to the approval of the supervising agency.
History
Add, L 1961, ch 803; amd, L 1942, ch 845, 3 5; L 1962, ch 342; L 1968, ch 516, 4, eff June
5, 1968; L 1996, ch 723, 4, eff Jan 30, 1997.
Annotations
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Current through 2015 released chapters i-5H9

Article V
105. Application of other corporation laws

The provisions of the business corporation law as presently in effect and as hereafter from
time to time amended, shall apply to redevelopment companies which are corporations,
except where such provisions are in conflict with the provisions of this article. In the
event that any action with respect to which the holders of income debentures shall have
the right to vote is proposed to be taken with regard to a redevelopment company which
is a corporation, then notice of any meeting at which such action is proposed to be taken
shall be given to such holders in the same manner and to the same extent as if they were
shareholders entitled to notice of and to vote at such meeting, and any certificate filed
pursuant to law in the department of state with respect to any such action, whether taken
with or without meeting, and any affidavit required by law to be annexed to such
certificate, shall contain the same statements or recitals and such certificate shall be
subscribed and acknowledged, and such affidavit shall be made, in the same manner as if
such holders were shareholders holding shares of an additional class of shares entitled to
vote on such action, or with respect to the proceedings provided for in such certificate.
History
Add, L 1961, ch 803; amd, L 1942, ch 845, 6; L 1965, ch 155; L 1968, ch 516, 5, eff June
5, 1968.
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Annotations

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Terms:"Gould" New York Consolidated Laws "Private Housing Finance Law" "article ii"
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Private dousing Finance Law
Article V
106. Powers of redevelopment companies

Each redevelopment company shall have and may exercise such of the powers conferred
by law as shall be necessary in conducting the business of a redevelopment company and
consistent with the provisions of this article.
History
Add, L 1961, ch 803; amd, L 1942, ch 845, 7; L 1965, ch 155; L 1968, ch 516, 6, eff June
5, 1968.
>
Annotations

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Article V
107. Limited return on investment

Subject to the provisions of section one hundred twenty-three of this article, there shall
be paid annually out of the earnings of the redevelopment company, after providing for all
expenses, taxes and assessments, a sum for interest on and amortization of any
mortgage indebtedness and depreciation charges if, when and to the extent deemed
necessary by the supervising agency, plus a distribution of six per centum on the capital
and interest not exceeding six percentum on outstanding income debentures; except that
in the case of redevelopment companies formed prior to April twenty-ninth nineteen
hundred sixty, and subject to the provisions of section one hundred twenty-three of this
article, there shall be paid annually out of the earnings of the redevelopment company,
after providing for all expenses, taxes and assessments a sum for interest amortization,
depreciation and distributions, equal to but not exceeding six per centum of the total
actual final cost of the project as defined by subdivision two of section one hundred
twelve of this article; the obligation in respect of such payment shall be cumulative, and
any deficiency in interest, amortization, depreciation and distributions in any year shall be
paid either from any cash surplus derived from earnings remaining in the treasury of the
redevelopment company in excess of the amount necessary to provide such cumulative
annual sums or from the first available earnings in subsequent years; and any cash
surplus derived from earnings remaining in the treasury of the redevelopment company in
excess of the amount necessary to provide such cumulative annual sums shall, upon the
dissolution of, or in the case of a redevelopment company which is a trust the termination
of the company, be paid into the general fund of the municipality except as otherwise
contemplated by subdivision five of section one hundred twenty-three of this article.
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History
Add, L 1961, ch 803; amd, L 1942, ch 845, 8; L 1968, ch 516, 7, eff June 5, 1968.
Annotations

Ail rights reserved Ali rights reserved.

Terms: Gould" New York Consolidated Laws "Private Housing Finance Law" "article II"
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Article V
Redevelopmenfi Companies
108. Consideration for capital and bonds

No redevelopment company which is a corporation shall issue shares, nor shall a
redevelopment company which is a partnership credit sums to the partners on capital
account, nor shall a redevelopment company which is a limited liability company credit
sums to the members on capital account, nor shall a redevelopment company which is a
trust subject amounts to the trust, and no redevelopment company shall issue bonds or
income debenture certificates except for money or property actually received for the use
and lawful purposes of the redevelopment company, provided, however, that a mutual
redevelopment company may issue shares for home owners purchase notes if the
purchase transaction has received the written endorsement of the commissioner in
accordance with supplementary rules and regulations of the commissioner made therefor
and if at least two hundred dollars in money or property is received by such mutual
redevelopment company toward the issuance of such shares. The consideration for all
capital, bonds or income debenture certificates based upon property received shall equal
a valuation approved by the supervising agency and such a valuation shall be used in
computing actual or estimated cost.
History
Add, L 1961, ch 803; amd, L 1942, ch 845, 9; L 1968, ch 516, 8; L 1970, ch 522, eff May
8, 1970; L 1996, ch 723, 6, eff Jan 30, 1997.
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Capy Citation
Current through 2015 released chapters 7.-589

Article V
109. Minimum amount of capital and debentures

Except as provided in this section the capital of a redevelopment company together with
any income debentures shall in no event be less than the total of ten per centum of the
actual cost of any project or projects undertaken pursuant to this article. The supervising
agency may permit capital to be increased or income debenture certificates to be issued
for working capital to be used in connection with such project to an amount not exceeding
three per centum of the estimated cost, or three per centum of the total actual final cost,
if that should exceed the estimated cost of a project.
The provisions of this section shall not be applicable to any redevelopment company if
funds made available by the federal government or any instrumentality thereof, or any
mortgage or mortgage bonds insured by the federal housing administrator or any other
instrumentality of the federal government are used in financing the project in whole or in
part.
History
Add, L 1961, ch 503; amd, L 1942, ch 845, 10; L 1964, ch 435; L 1968, ch 516, 9, eff
June 5, 1968.
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Private Flouring Finance Law
Article V
PEedevelopment Companies
110. Income debentures

With the approval of the supervising agency, the certificate creating a redevelopment
company, or an amended certificate, may authorize the issuance of income debenture
certificates bearing no greater interest than six per centum per annum. Such income
debenture certificates and any instrument under which they are issued may contain such
other provisions, including provision for amortization by serial maturities, through the
operation of a sinking fund or otherwise, as may be approved by the supervising agency.
History
Add, L 1961, ch 803; amd, L 1942, ch 845, 11; L 1968, ch 516, 10, eff June 5, 1968.
~ Annotations

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Private Mousing Finance Law
Article V
111. Mortgages and mortgage bonds

Any redevelopment company, subject to the approval of the supervising agency, may
borrow funds and secure the repayment thereof by bond and mortgage or by an issue of
bonds under a trust indenture. Each mortgage or issue of bonds of a redevelopment
company shall relate only to a single specified project and to no other and such bonds
shall be secured by mortgage upon all of the real property of which such project consists.
FirsT lien bonds of such redevelopment company when secured by a mortgage not
exceeding ninety per centum of the estimated cost prior to the completion of the project,
and in no event exceeding ninety per centum of the actual cost upon such completion, as
certified by the supervising agency, or, in the case of a completed project, not exceeding
ninety per centum of the appraised value or such previously certified actual cost,
whichever is less, are hereby declared securities in which all public officers and bodies of
the state and of its municipal subdivisions, all insurance companies and associations, all
savings banks and savings institutions, including savings and loan associations,
executors, administrators, guardians, trustees and ail other fiduciaries in the state may
properly and legally invest the funds within their control.
First lien bonds of such a redevelopment company issued under a trust indenture and
pursuant to a building loan contract, or a building loan bond and building loan mortgage
under which advances are made pursuant to a building loan contract, where the
aggregate principal amount to be issued or advanced does not exceed ninety per centum
of the estimated cost prior to the completion of the project, and in any event does not
exceed ninety per centum of the actual cost upon such completion, as certified by the
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supervising agency, are hereby declared securities in which all banks, savings banks,
savings institutions and trust companies in addition to all such officers, bodies,
companies, associations, institutions and fiduciaries may properly and legally invest the
funds within their control; provided, however, that such investment is made as a
construction loan with a maturity of not to exceed two years. The maturity of any such
construction loan may be extended from time to time with the approval of the board of
directors or trustees of the bank, savings banks, savings institutions or trust company
holding such loan but no one such extension shall be for a period of time exceeding six
months.
The bonds so issued and secured and the mortgage or trust indenture relating thereto,
may create a first or senior lien and a secondary or junior liens upon the real property
embraced in any project; provided, however, that the total mortgage liens shall not
exceed ninety per centum of the estimated cost prior to the completion of the project,
and shall not in any event exceed ninety per centum of the actual cost upon such
completion, or, in the case of a completed project, not exceeding ninety per centum of
the appraised value or such previously certified actual cost, whichever is less. Such bonds
and mortgages or trust indentures may contain such other clauses and provisions as shall
be approved by the supervising agency, including the right to assignment of rents and
entry into possession in case of default and including in the case of a redevelopment
company which is a partnership or trust the right of the partners or trustees, as the case
may be, to be free of any personal liability thereunder; but the operation of the housing
project in the event of such entry by mortgagee or receiver shall be subject to regulations
promulgated by the supervising agency. Provisions for the amortization of the banded
indebtedness of companies formed under this article shall be subject to the approval of
the supervising agency. So long as funds made available by the federal government or
any instrumentality thereof or any mortgage or mortgage bonds, insured by the federal
housing administrator or any other instrumentality of the federal government are used in
financing, in whole or in part, any project under this article, the capital structure of a
redevelopment company undertaking such project and the proportionate amount of the
cost of the lands and improvements to be represented by mortgages or bonds shall be
entirely in the discretion of the supervising agency; and all restrictions as to the maturity
of any construction loan and as to the amounts to be represented by mortgages,
mortgage bonds, income debentures or capital shall be inapplicable to such projects or to
redevelopment companies undertaking such projects, except that the bonds, mortgages,
debentures and capital covering any project shall not exceed the total actual final cost of
such project as defined in subdivision two of section one hundred twelve of this article.
Interest rates on mortgage indebtedness shall not exceed the greater of
(a) six percentum per annum,
(b) the rate prescribed by the superintendent of financial services pursuant to
section fourteen-a of the banking law,
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(c) the rates of mortgages or mortgage bonds insured by the federal housing
administration or any other instrumentality of the federal government and
(d) such rate as may be approved by the supervising agency provided, however,
that the applicable rate for purposes of paragraphs (b), (c) and (d), of this section
one hundred eleven shall be the rate applicable or approved at the time the
redevelopment company incurs the mortgage indebtedness.
As used in this section the term "bond" includes a note heretofore or hereafter made.
History
Add, L 1961, ch 803; amd, L 1964, ch 435; L 1968, ch 516, 11; L 1969, ch 40, eff March
11, 1969; L ZOli, ch 62, 104 (Part A), eff Oct 3, 2011.
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Private 6iousing Finance Law
Ar4icle V
111-a. Participation by certain corporations and individuals

Any bank, savings bank, savings institution, savings and loan association, trust company,
insurance company or association, or fiduciary authorized to invest in mortgages and
mortgage bonds of a redevelopment company, or any combination of the foregoing, shall
have power to participate and invest, singly or jointly, with the New York city housing
development corporation in a bond or note and single participating mortgage, or in
separate bonds or notes and mortgages pursuant to this article. In the event of such
participation, the interest of each shall have equal priority as to lien in proportion to the
amount of loan so secured, but need not be equal as to interest rate, time or rate of
amortization or otherwise.
History
Add, L 1978, ch 314, eff June 19, 1978.
Annotations
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Article d
111-b. Mortgage modification provisions for redevelopment

companies in cities with a population of one million or more
1. For purposes of this section, "restrictive agreement" shall mean a binding and
irrevocable agreement between the redevelopment company and the supervising agency
providing that such redevelopment company for a term of five years from the date of
such agreement (i) shall not voluntarily dissolve or reconstitute pursuant to section one
hundred twenty-three of this article, (ii) shall exercise any and all available options to
renew any housing assistance payments contract pursuant to section eight of the United
States Housing Act of nineteen hundred thirty-seven, as amended, and any successor
rent subsidy program, (iii) shall not cause such a contract to be terminated by reason of
such redevelopment company's noncompliance with any of the terms thereof, and (iv)
shall not voluntarily cause or permit such a contract to expire, to not be extended, to not
be renewed, or to be terminated.
2. Notwithstanding the provisions of this article or the provisions of any law, general or
special, in cities with a population of one million or more, a redevelopment company with
a federally-aided mortgage formed pursuant to this article may borrow funds and secure
the repayment thereof by note and mortgage or any other manner approved by the
supervising agency, provided, however, that (a) such approval by the supervising agency
shall be conditioned upon a restrictive agreement, and (b) such redevelopment company
may not increase the rents paid by the tenants to pay for any such increase in
indebtedness that is not attributable to project cost.
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History
Add, L 2007, ch 493, 1, eff Aug 1, 2007.
Annotations

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Current through 2015 released chapTers 1-589

Article V
112. Limitations
In addition to limitations prescribed by this article a redevelopment company shall not
have power to:
1. Acquire any real property or interest therein for a project or projects unless the
supervising agency and the local legislative body determine as provided in this article
that such acquisition is necessary or convenient for the public purpose defined in this
article, and unless any deed, lease or other instrument by which such real property or
interest therein is acquired contains a statement that the conveyance is to a
redevelopment company organized pursuant to article five of the private housing
finance law.
2. Create its capital, or issue its debentures and bonds covering any project
undertaken by it in an amount greater in the aggregate than the total actual final cost
of such project. The actual cost of such project shall include the cost of the lands and
improvements constituting the project and charges for financing and supervision
approved by the supervising agency, condemnation charges and interest and other
carrying charges during the period of acquisition and of construction. The total actual
final cost shall be deemed to be an amount equal to such actual cost plus an
allowance for working capital. Such allowance for working capital shall not exceed an
amount equal to three per centum of the estimated cost or of the total actual final
cost of the project if that shall be greater than the estimated cost.
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3. Enter into contracts for the payment of salaries to officers or employees, or for the
construction or for the substantial repair, improvement or operation of projects except
subject to the approval of the supervising agency.
History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, L 1968, ch 516, 12, eff June 5, 1968.
Annotations


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Curr<nt through 2015 released chapters 1-589

Article V
113. Use of projects

The project or projects of any redevelopment company shall be designed and used
primarily for housing purposes, but portions of the project may be planned and used for
business, commercial, cultural or recreational purposes appurtenant thereto as approved
in the project.
History
Add, L 1961, ch 803, eff Mar 1, 1962.
Annotations
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Private Mousing Finance Law
Article d
114. Procedure for submission and approval of plan or

project
Every plan or plan of a project proposed by a redevelopment company shall contain a
general description of the area to be redeveloped and a statement of the plan of
redevelopment with such detail of information with reference thereto as may be
necessary to a general understanding thereof. Where changes in the city map and zoning
amendments or variances are necessitated by such plan or project, such amendments,
variances and changes shall be submitted together with the plan or project herein and
considered as part thereof.
After preliminary approval thereof by the supervising agency as to conformity with the
provisions and purposes of this article, every such plan or plan of a project shall be
submitted to the planning commission for approval of the plan or plan of the project
relating to:
1. Height and bulk of structures, density of population and percentage of land
coverage by structures as to their conformity with the purposes of this article and
with the master plan, if any; and the relationship of the density of population
contemplated by the plan or plan of the project to the distribution of the population of
the municipality in other areas or parts thereof, and
2. Provision, if any, for business or commercial facilities appurtenant to the plan or
project, relationship to existing and planned public facilities, adequacy and planned
rearrangement of street facilities and provisions for light, air, cultural and recreational
facilities as to their conformity with the purposes of this article and their adequacy for
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accommodation of the density of population contemplated by the plan or plan of the

project.
Where a project consists substantially of the rehabilitation of an existing structure or
structures, and no changes in the city map and zoning amendments or variances are
necessitated by the project, the supervising agency may waive the preparation and
submission of the plan or plan of a project.
Where a plan or plan of a project has been prepared and submitted, the planning
commission, after public hearing, notice of which shall be published at least ten days prior
thereto in the official publication of the municipality, or if none exists, in a newspaper
circulating in the municipality, on the plan or plan of a project, may:
a. Issue an unqualified certificate of approval thereof, or
b. Issue a certificate of conditional or qualified approval thereof, with or without
recommendations, or
c. Disapprove thereof.
After action thereon by the planning commission, such plan or plan of a project with a
proposed form of contract between the municipality and the redevelopment company or,
when all stock, debentures and mortgage bonds of the company are owned or are to be
owned by one or more insurance companies, between the municipality, redevelopment
company and such insurance company or companies shall be submitted by the
redevelopment company, with a certificate of approval of the supervising agency and the
certificate or a statement of action, if any, on the plan or project by the planning
commission, to the local legislative body for its approval of the project as to conformity
with the provisions and purposes of this article, the extent of the tax exemption to be
granted pursuant to section one hundred twenty-five, the amount and nature of the
property to be condemned for the redevelopment company by the municipality and the
terms and conditions of payment therefor by the redevelopment company, the amount of
publicly owned land or facilities to be sold to the redevelopment company or exchanged
for redevelopment company-owned lands and the availability of other suitable dwelling
accommodations for families living in the area or part thereof to be affected by the plan
or plan of the project.
As part of an approved project the local legislative body may require a redevelopment
company to dedicate to the municipality or any agency thereof in the manner provided by
law specified portions of the land in a project for parks, streets, public recreational and
other public purposes.
The contract shall regulate the rents to be charged for rooms in the project and may
contain such other provisions, not inconsistent with this article, as may be deemed
necessary or desirable for the financing, construction, operation and supervision of the
project.
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In any case where a plan or plan of a project has been prepared and submitted and the
planning commission shall have issued a certificate of unqualified approval, or where
preparation and submission of a plan or plan of a project has been waived by the
supervising agency in accordance with the provisions of this section, approval of the
project by the local legislative body may be by resolution adopted by a majority of the
whole number of votes authorized to be cast by all of the members thereof. In any case
where a plan or plan of a project has been prepared and submitted and the planning
commission shall not have issued a certificate of unqualified approval, the plan or plan of
a project may nevertheless be approved by the local legislative body, after public
hearings thereon, by resolution adopted by athree-fourths vote of the whole number of
votes authorized to be cast by all of the members thereof. Notwithstanding any other
provision of law, changes in the city map, zoning amendments, or variances contained in
the plan shall be deemed approved by the local legislative body when it approves the plan
or project. Any such changes in the city map, zoning amendments, or variances shall
become effective on the date on which the supervising agency shall file a resolution with
the local legislative body in implementation thereof. The local legislative body is
authorized to enter into the necessary contract or contracts on behalf of the municipality.
If the contract parties are a municipality, a redevelopment company and one or more
insurance companies which own or will own all of the stock, debentures, bonds and
mortgage indebtedness of such redevelopment company, or if the project is undertaken
by an insurance company, then the certificate of the supervising agency approving such
contract shall terminate the functions of the supervising agency pursuant to this article,
and after the execution of such contract all references herein to the approval or other
action by the supervising agency shall be inapplicable to the project provided for in such
contract and to such redevelopment company or the insurance company undertaking such
project.
History
Add, L 1961, ch 803; amd, L 1942, ch 845, 15; L 1973, ch 873, eff June 22, 1973; L 1981,
ch 804, 2, eff July 27, 1981.
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Current through ZO15 released chapters 7.-589

Article V
115. Limitation on changes

It shall be unlawful during the period of tax exemption, granted pursuant to section one
hundred twenty-five of this article, for any redevelopment company or any successor in
interest to its title to a project or any part thereof to change or modify any feature of a
project for which approval of the planning commission is required by this article, without
the approval of such commission, except by athree-quarters vote of the local legislative
body.
History
Add, L 1961, ch 803, eff Mar 1, 1962.
Annotations

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Article V
116. Transfer of real property to redevelopment company

Notwithstanding any requirement of law to the contrary or the absence of direct provision
therefor in the instrument under which a fiduciary is acting, every executor,
administrator, trustee, guardian or other person, holding trust funds or acting in a
fiduciary capacity, unless the instrument under which such fiduciary is acting expressly
forbids, the state, its subdivisions, municipalities, ail other public bodies, all public
officers, persons, partnerships and corporations organized under or subject to the
provisions of the insurance law, the superintendent of financial services as conservator,
liquidator or rehabilitator of any such person, partnership or corporation, owning or
holding any real property within an area, may grant, sell, lease or otherwise transfer any
such real property to a redevelopment company and receive and hold any cash, stock,
income debentures, bonds, mortgages, or other securities or obligations, secured or
unsecured, exchanged therefor by such redevelopment company and may execute such
instruments and do such acts as may be deemed necessary or desirable by them or it and
by the redevelopment company in connection with a project or projects. An insurance
company which has undertaken a project through direct ownership and/or lease may
transfer to the project any real property which it owns or holds within an area and the
actual cost of such property to the insurance company shall be included in the total actual
final cost of such project.
History
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Add, L 1961, ch 803, eff March 1, 1962; amd, L 2011, ch 62, 104 (Part A), eff Oct 3, 2011.
~ Annotations

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12edevelopment Companies
Mrticle V
~ 117. Rules and regulations

The planning commission and the supervising agency, respectively, shall have power to
make rules and regulations to carry out their powers and duties pursuant to this article
and to effectuate the purposes thereof.
History
Add, L 1961, ch 803, eff Mar 1, 1962.
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Arficle V
118. Fees
The supervising agency, the local legislative body and the planning commission, if any,
may each adopt a reasonable schedule of fees to be paid by redevelopment companies
upon the filing with said supervising agency, local legislative body or planning commission
of a plan, plans for a project or projects, amendments thereto and other instruments in
connection therewith and redevelopment companies shall pay reasonable fees to the said
supervising agency as said agency shall prescribe for processing a redevelopment plan
and for the supervision of construction and for the audit, regulation and general
supervision of the management of the company, which fees shall be set aside in a
separate account and shall be used to pay for the expenses of administering and carrying
out the provisions of the redevelopment companies law.
History
Add, L 1961, ch 803; amd, L 1942, ch 845, 19; L 1962, ch 409, eff Apr 9, 1962.
Annotations
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New York Consolidated Laves Service


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Current Chrough 2015 released chapters 1-589
Article d
92edevelopment Companies
119. Acquisition
A municipality may take property by acquisition pursuant to the provisions of the eminent
domain procedure law for a redevelopment company, provided the contract or contracts
executed pursuant to section one hundred fourteen contain a requirement that the
company shall pay to the municipality all sums expended or required to be expended by
the municipality in the acquisition of such real property, provision as to the time of
payment and manner of securing payment thereof, and provisions requiring that the
municipality receive, before proceeding with the acquisition of such real property, such
assurances as to payment or reimbursement by the redevelopment company, or
otherwise, as the local legislative body may deem advisable. Upon the execution of such
contract or contracts the company shall cause to be made two copies of surveys or maps
of the real property described in the contract, one of which shall be filed in the office of
the redevelopment company, one in the office of the corporation counsel or chief law
officer of the municipality, and one in the office in which instruments affecting real
property in the county are recorded. Upon compliance by the redevelopment company
with the applicable terms and conditions of such contract or contracts the municipality
shall proceed to acquire title to the real property in accordance with the provisions of the
eminent domain procedure law and when title to the real property shall have vested in
the municipality, it shall convey the same to the redevelopment company upon final
compliance by the redevelopment company with such terms and conditions. As soon as
title shall have vested in the municipality, the redevelopment company may, upon the
authorization of the mayor, enter upon the real property taken, take over and dispose of
existing improvements, and carry out the terms of the project with respect thereto.
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Real property in an area, needed or convenient for the project, which is to be acquired
pursuant to this section, may be acquired by the municipality for the project, including
any property devoted to a public use, whether or not held in trust, notwithstanding that
such property may have been previously acquired or is owned by a public utility
corporation, it being hereby expressly determined that the public use in conformity with
the provisions of this article shall be deemed a superior public use. The local legislative
body may consent to the acquisition of property owned by the municipality, whether or
not such property be held in trust, or may sell or lease any such property necessary or
convenient for a project of a redevelopment company without public bidding, provided
notice of such sale or lease is published and a public hearing is held before the local
legislative body. The term of any such lease shall not be limited by any provision of any
general, special or local law or city charter limiting the period of time during which a lease
or any renewal thereof may run. Real property belonging to a public utility corporation
may not be acquired without the approval of the commission or other officer or tribunal
having regulatory power over such corporation.
An award of compensation shall not be increased by reason of any increase in the value of
the real property caused by the assembly, clearance or reconstruction, or proposed
assembly, clearance or reconstruction for the purposes of this article of the real property
in an area.
A Iocal legislative body, upon payment therefor or upon exchange for other lands, may
convey to any redevelopment company land in any street or public place which is duly
closed or discontinued pursuant to the plan of a project.
Notwithstanding the provisions of any general, special or local law, charter or ordinance,
the local legislative body of a city having a population of one million or more may, upon
the request of or with the approval of the board of education of such city's school district,
grant, sell, lease or otherwise transfer any lands or rights or interests therein or thereto,
including fee interests, easements, space rights or air rights or other rights or interests
owned by such city and occupied or reserved for school purposes and needed therefor, to
a redevelopment company where necessary for the joint development of a project and a
school or appurtenant facilities without public bidding, provided notice of such lease or
contract for the sale or other transfer of such lands or rights or interests therein or
thereto is published and a public hearing is held before such local legislative body. No
such sale, lease or transfer of lands or rights therein or thereto is authorized where the
development of a project contemplates the erection of housing facilities over an existing
school or playground. The terms of any such lease shall not be limited by any provision of
any general, special or local law or charter applicable to such city limiting the period of
time during which a lease or any renewal thereof may run.
Nothing in this section shall be deemed to forbid or prevent the acquisition of any real or
personal property by a redevelopment company by gift, devise, bequest, grant, or subject
to the provisions of this article, by purchase at public or private sale.
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History
Add, L 1961, ch 803; amd, L 1965, ch 378, eff June 14, 1965; L 1977, ch 840, 66, eff July
1, 1978.
~ Annotations


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Current through J_Oi5 released chapters 1-589

Private FBoeasing Finance Law
Article d
120. Regulation of redevelopment companies

The supervising agency shall:
Examine each redevelopment company and keep informed as to its general condition,
its capitalization and the manner in which its property is constructed, leased,
operated or managed with respect to its compliance with all provisions of law and
orders of the supervising agency.
The supervising agency may:
1. Either itself or through its inspectors or employees duly authorized by it, enter
in or upon and inspect the property, equipment, buildings, plants, offices,
apparatus and devices of any redevelopment company; examine all books,
contracts, records, documents and papers of any redevelopment company and by
subpoena duces tecum compel the production thereof.
2. In its discretion, prescribe uniform methods and forms of keeping accounts,
records and books to be observed by redevelopment companies, and after a
hearing to prescribe by order accounts in which particular outlays and receipts
shall be entered, charged or credited.
3. Require specific answers to questions upon which it may desire information
and require the filing of periodic reports in the form, covering the period, and at
the time prescribed by it.
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4. In the event of a violation by a company of any provision of its certificate or of

law or any rules and regulations promulgated pursuant to the provisions of this
article, the supervising agency may, by written notice to all of the directors,
partners, members or trustees, as the case may be, of a company, at their last
known address, specifying the reasons therefor, advise such directors, partners,
members or trustees, as the case may be, of its intention to remove any or all of
the existing directors or to appoint a manager or managers of the limited liability
company, partnership or trust who shall exclusively exercise all of the powers of
such partners, members or trustees, as the case may be, for the duration of the
appointment of such manager or managers. A copy of any such notices shall be
mailed to the mortgagee of record. In the event that the company fails to comply
with the requirements of the supervising agency within thirty days from date of
mailing of said written notice, the supervising agency may, with the written
approval of the mortgagee and without further notice to the company or to its
directors, partners, members or trustees, as the case may be, remove such
directors in the case of a redevelopment company which is a corporation or any of
them from office and appoint such person or persons as the supervising agency,
in its sole discretion, deems advisable, including officers or employees of the
supervising agency, as new directors to serve in the places of those removed, or
appoint such manager or managers in the case of a redevelopment company
which is a partnership, limited liability company or trust, who shall exclusively
exercise all of the powers of such partners, members or trustees, as the case may
be. Directors or managers so appointed need not meet qualifications which may
be prescribed by the certificate, by-laws, partnership agreement, antic/es of
organization or operating agreement of the limited liability companies or trust
agreement, or other rules or regulations of the company. In the absence of fraud
or bad faith directors or managers so appointed shall not be personally liable for
debts, obligations or liabilities of the company. Directors or managers so
appointed shall serve only for a period coexistent with the duration of such
violation or until the supervising agency is assured, in a manner satisfactory to it,
against violations of a similar nature. Officers or employees of the supervising
agency who are appointed as such directors or managers shall serve in such
capacity without compensation.
History
Add, L 1961, ch 803, eff Mar 1, 1962; amd, l 1966, ch 604; amd, L 1968, ch 516, 13, eff
June 5, 1968; L 1996, ch 723, ~ 7, eff Jan 30, 1997.
~ Annotations
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Copy Citation
Current through ?015 released chapters 1-589

Private housing Finance Law
Article d
121. Sinking fund

Unless other provision be made therefor in the contract with the municipality, the
supervising agency, if it shall deem it feasible at any time, subject to the limitation
contained in section one hundred seven of this article, may require a redevelopment
company to provide out of earnings, after provision for distributions and interest, a
sinking fund in an amount to be fixed by such supervising agency for the gradual
retirement of the capital and income debenture certificates of such company. Such sinking
fund may be used either for the purchase or retirement, from time to time, of capital or
income debenture certificates at a price approved by the supervising agency not
exceeding par value thereof with accrued and unpaid distributions or interest, or if it be
not practicable to purchase or retire such capital or such income debenture certificates at
a price so approved, the moneys in such sinking fund may be added to the surplus of
such company. Any capital evidence by shares or income debenture certificates purchased
or retired out of such sinking fund shall be cancelled and shall not be reissued.
History
Add, L 1961, ch 803; amd, L 1968, ch 516, 14, eff June 5, 1968.
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Annotations


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Article V
122. Transfer of title or foreclosure of project

1. Until the termination of the tax exemption, whether by expiration or by any other
cause, a redevelopment company, heretofore or hereafter organized, shall not have
power to sell the real property constituting the project or any portion or portions thereof
without the consent of the local legislative body.
2. If an action be brought to foreclose a mortgage or tax lien upon a redevelopment
project, heretofore or hereafter authorized pursuant to this article, and the real property
constituting the project shall be acquired at the foreclosure sale or from the mortgagee or
lienor that had acquired the property of such sale, or by a conveyance in lieu of such sale,
by a redevelopment company organized pursuant to this article, or by the federal
government or an instrumentality thereof, or by a corporation which is, or by agreement
has become subject to the supervision of the superintendent of financial services, such
successor in interest shall acquire such project subject to ail provisions of the contract
regulating such project and shall be entitled to all of the benefits contained in such
contract. In all other cases of sale at foreclosure or forced sale, the real property
constituting the project or any portion or portions thereof shall be sold free of ail
restrictions, except such covenants running with the land as may be contained in the
contract regulating the project, or in the deed, if any, given by the municipality to the
redevelopment company affecting all or any portion of the real property upon which the
project is situated, and the tax exemption, if any, theretofore granted to such project
pursuant to such contract shall immediately terminate.
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History
Add, L 1961, ch 803; amd, L 1978, ch 314, eff )une 19, 1975; L 1981, ch 804, 3, eff July
27, 1981; L 2011, ch 62, ~ 104 (Part A), eff Oct 3, 2011; L 2012, ch 155, 70, eff July 18,
2012.
Annotations

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NY CLS Priv Flous Fira 123

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lVew York Consolidated Laws Service
Article V
123. Dissolution
1. After termination of any tax exemption granted pursuant to section one hundred
twenty-five of this article, whether by expiration or by any other cause, or in the event
that prior thereto the redevelopment company elects to pay to the municipality the total
of all accrued taxes for which such exemption was granted and received, together with
interest at the rate of five per centum per annum, a redevelopment company which is a
corporation or partnership or limited /iabi/ity company may voluntarily dissolve or, in the
case of a redevelopment company which is a trust, may terminate, and title to the project
may be conveyed in fee to the owner or owners of its capital or to any corporation,
partnership, limited liability company or trust designated by it or them for the purpose, or
the redevelopment company may be dissolved or terminated and reconstituted pursuant
to appropriate laws relating to the formation and conduct of corporations, partnerships,
limited liability companies or trusts, after providing, in any case, for the payment of ail
current operating expenses, taxes, indebtedness and all accrued interest thereon, and the
par value or amount of the capital of the redevelopment company and accrued
distributions in respect thereof. If, after making such provision and after the conveyance
of the project, a cash surplus remains in the treasury of the redevelopment company,
such cash surplus shall, upon dissolution or termination, be paid into the general fund of
the municipality. After such dissolution or termination and conveyance or such
reconstitution, the provisions of this article shall become and be inapplicable to any such
project and its owner or owners, and any tax exemption granted to such redevelopment
company pursuant to section one hundred twenty-five of this article shall cease and
terminate.
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2. If prior to the termination of any tax exemption the project is sold for any reason, the
redevelopment company shall dissolve or terminate, and any tax exemption granted to
such redevelopment company pursuant to section one hundred twenty-five of this article
shall cease and terminate, except as otherwise provided in section one hundred twentytwo of this article. In such case the shareholders, partners, members or beneficiaries, as
the case may be, and income debenture certificate holders shall in no event receive more
than the par value of their shares or amount of their capital and the face value of their
income debenture certificates with accrued and unpaid distributions or interest in respect
of such capital and income debenture certificates, and any remaining surplus shall be paid
into the general fund of the municipality.
3. In no event shall a redevelopment company be voluntarily dissolved or terminated
unless provision is made for the payment in full of the remaining balance of principal and
interest due or unpaid upon any mortgage on its property or any part thereof, but any
project may, with the consent of the local legislative body of the municipality, be
conveyed and transferred to the municipality subject to such mortgage and accrued
interest.
4. Unless the local legislative body of the municipality shall consent to the voluntary
dissolution or termination of a redevelopment company, such a company shall not
dissolve or terminate except in accordance with subdivisions one and two of this section
or upon the expiration of its term as stated in the certificate creating the redevelopment
company.
5. With the consent of the local legislative body and the superintendent of financial
services, a redevelopment company heretofore or hereafter organized may voluntarily
dissolve or terminate prior to the termination of any tax exemption granted pursuant to
section one hundred twenty-five of this article and title to the project may be conveyed,
and all other assets of such redevelopment company may be transferred, to an insurance
company, whether or not such project shall have been theretofore completed. After such
dissolution or termination and conveyance such tax exemption shall continue for the
period of years originally provided for in the contract, or for the unexpired portion thereof
if such period shall have theretofore commenced, subject to prior termination pursuant to
section one hundred twenty-four or section one hundred twenty-five of this article, and
the provisions of this article shall thereafter be applicable to such project and to such
insurance company to the same extent and with the same force and effect as though such
project had been initially undertaken by such insurance company pursuant to section one
hundred twenty-four of this article; provided, however, that nothing herein contained
shall be deemed to require the resubmission of the plan of the project and the contract
relating thereto for approval pursuant to section one hundred fourteen of this article.
6. The contract with the municipality may contain such other provisions for the
dissolution or termination of the redevelopment company as may be deemed advisable,
not inconsistent with the provisions of this article. In case of a dissolution or termination
and conveyance in accordance with subdivision five of this section, the contract may be
modified consistently with the provisions of said subdivision five and section one hundred
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twenty-four of this article, any such modifications to 6e approved by the superintendent

of financial services and the local legislative body.
7. Upon dissolution or termination as provided in this section, this article shall become
and be inapplicable to the project and its owner or owners except as otherwise
contemplated by subdivision five of this section.
History
Add, L 1961, ch 803; amd, L 1968, ch 516, 15, eff June 5, 1968; L 1996, ch 723, 8, eff
Jan 30, 1997; L 2011, ch 62, 104 (Part A), eff Oct 3, 2011.
9 Annotations

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Article V
124. Participation by certain corporations

One or more insurance companies shall have the power to organize, or cause to be
organized, a redevelopment company formed pursuant to the provisions of this article,
and to purchase for cash or to receive and hold in exchange for property, and to own and
control, the stock or the income debenture certificates or both of any redevelopment
company and shall also have power to invest, singly or jointly, in a bond and first
mortgage or in an issue of bonds secured by mortgage or trust indenture constituting a
first lien upon any project as provided in this article. An insurance company, however,
which owns stock or income debenture certificates of a redevelopment company and also
owns bonds or a bond and mortgage or an interest in a bond and mortgage of the same
redevelopment company shall not, without the consent of the supervising agency, sell all
or any part of such bonds or such bond and mortgage or of its interest in such bond and
mort9a9e unless it shall simultaneously sell such stock and such income debenture
certificates owned by it.
Notwithstanding any other provision of law, an insurance company or companies
operating a redevelopment project or owning all of the stock of a redevelopment company
are hereby expressly authorized to enter into contracts contemplated by this article and
to agree by contract with the municipality not to sell, assign, or otherwise transfer such
project or the stock, income debentures or mortgage bonds of such redevelopment
company during the period of tax exemption provided for by the contract pursuant to this
article without the consent of the local legislative body of the municipality. An insurance
company or companies owning all of the stock of a redevelopment company are hereby
expressly authorized to make such capital contributions to any such redevelopment
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company, in cash or by cancellation of securities or otherwise, as may be necessary to

enable such redevelopment company to comply with all conditions precedent to its
dissolution and conveyance of its property in accordance with section one hundred
twenty-three of this article, and upon dissolution of such a redevelopment company, to
acquire the project, complete the same if not theretofore completed, and own and
operate the same as a permanent investment for such period as it or they may deem
desirable either directly or through acquisition and ownership of the capital stock of any
corporation which may acquire title to the project pursuant to subdivision one of section
one hundred twenty-three.
An insurance company, instead of investing its funds in the stock and debentures or other
obligations of a redevelopment company, may through direct ownership and/or lease
acquire, own, construct, manage or operate as an investment for such period as it may
deem desirable, one or more projects, in which event the provisions of subsection one of
section one hundred twelve of this article applicable to redevelopment companies shall be
applicable to such insurance company in its operations with respect to any such project
but not otherwise. Said provisions and the ensuing provisions of this section shall cease to
be applicable to any such project and to such insurance company in its operations with
respect to such project after termination of any tax exemption granted pursuant to
section one hundred twenty-five of this article with respect to such project, whether such
termination shall be by expiration or by any other cause, or in the event that prior thereto
the insurance company elects to pay the municipality the total of all accrued taxes for
which such exemption was granted and received, together with interest at the rate of five
per centum per annum. If any such project shall be sold by an insurance company, the
tax exemption with respect to such project shall thereupon cease and terminate unless
the local legislative body shall otherwise provide.
Until the termination of any tax exemption granted pursuant to section one hundred
twenty-five of this article or until the provisions of this article shall otherwise cease to be
applicable:
1. An insurance company shall be entitled to earn and retain annually on a
cumulative basis in respect of each project operated by it hereunder, before
depreciation but after providing for all expenses, taxes and assessments attributable
to such project or to the income therefrom, a sum equal to but not exceeding six per
centum of the total actual final cost of the project as defined by subdivision two of
section one hundred twelve of this article.
2. Separate accounts shall be kept for each project operated by an insurance
company.
3. If the income from any such project for any year, after all expenses, taxes and
assessments attributable thereto or to the income therefrom, shall be in excess of six
per centum of the total actual final cost of such project as defined by subdivision two
of section one hundred twelve of this article, such excess shall be credited to a special
reserve account.
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4. If the income from any such project for any year, after all expenses, taxes and
assessments attributable thereto or to the income therefrom shall be less than six per
centum of such total actual final cost, such deficiency shall be charged against such
special reserve account.
The amount of any accrued taxes and interest thereon paid by an insurance company
pursuant to the second paragraph of section one hundred twenty-five of this article may
be charged against such special reserve account. An amount equal to any balance
remaining to the credit of such special reserve account on the termination of the period of
tax exemption shall be paid into the general fund of the municipality. If any project shall
be conveyed to an insurance company in accordance with subdivision five of section one
hundred twenty-three of this article, an amount equal to all accrued and unpaid interest,
amortization and dividends on the stock and evidences of indebtedness of the
redevelopment company theretofore accumulated in accordance with section one hundred
seven of this article shall be charged against the special reserve account except to the
extent included in total actual final cost, and any remaining cash surplus derived from
earnings remaining in the treasury of the redevelopment company shall be transferred to
such insurance company and shall be credited by it to the special reserve account
provided for in this section applicable to such project.
Except as specifically provided herein this article shall not be deemed to limit or restrict
any power or authority granted to insurance companies or to any other corporation or to
any fiduciary by any other provision of law heretofore or hereafter enacted.
History
Add, L 1961, ch 803, eff Mar 1, 1962.
~ Annotations

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Terms:"Gould" New York Consolidated Laws "Private Housing Finance Law "article il"
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Article V
125. Tax exemptions
(a) The local legislative body of any municipality in which a project of such company
is or is to be located may by contract agree with any redevelopment company to
exempt from local and municipal taxes, other than assessments for local
improvements, all or part of the value of the property included in such project which
represents an increase over the assessed valuation of the real property, both land and
improvements, acquired for the project at the time of its acquisition by the
redevelopment company which originally undertook the project and for such definite
period of years as such contract may provide, except that where the real property in a
project was acquired for purposes of rehabilitation, the local legislative body either
may utilize the foregoing formula or may agree to exempt from such taxes all or part
of the value of the property included in such project on condition that the amount of
such taxes to be paid shall not be less than ten per centum of the annual shelter rent
or carrying charges of such rehabilitation project. The tax exemption shall not operate
for a period of more than twenty-five years, commencing in each instance from the
date on which the benefits of such exemption first become available and effective;
provided, however, that with respect to a project either acquired by a mutual
redevelopment company pursuant to section one hundred twenty-six or owned and
continuing to be owned by a mutual redevelopment company which would require
substantial increases in carrying charges after the period of tax exemption is ended
unless relief is provided, the local legislative body may contract with such mutual
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redevelopment company to extend such tax exemption for not more than twenty-five
additional years at a rate of tax exemption not to exceed an average of fifty per
centum during such additional period, provided that the tax exemption during the first
two years of such additional period shall continue at the rate of the tax exemption of
such project immediately preceding the termination of the initial twenty-five year
period and that the tax exemption thereafter shall be decreased in equal biennial
decrements, the first of which shall occur immediately following such two year period,
and provided that such contract shall contain provisions as to income limitations
relating to admission and continued occupancy of the project and provisions as to
rental surcharges to the same effect as are contained in subdivisions two, three, four
and five of section thirty-one, except that in the case of projects owned and
continuing to be owned by mutual redevelopment companies, persons or families
whose probable aggregate annual income does not exceed the median income for
families of the same size in the same metropolitan area shall also be eligible for
admission to the project on the understanding that any person or family becoming
eligible by reason hereof whose probable aggregate annual income at the time of
admission or during the period of occupancy exceeds, the greater of (i) the median
income for such persons or families for the metropolitan statistical area in which the
project is located, or if a project is located outside a metropolitan statistical area, the
median income for such persons or families for the county in which the project is
located, as most recently determined by the United States department of housing and
urban development, in which case any person or family becoming eligible for
admission pursuant to this subparagraph shall pay, from the time of admission, a
rental surcharge as provided for in subdivision three of section thirty-one of this
chapter, computed on the basis of the income limitations applicable to such persons
or families in the absence of this subparagraph, or (ii) six times the rental shall be
liable for payment of rental surcharges hereunder computed on the basis of such
ratio, except that in the case of families with three or more dependents such ratio
shall be seven to one; and provided further that with respect to a project which is or
is to be permanently financed by a federally-aided mortgage, the tax exemption shall
operate for so long as such mortgage is outstanding, but in no event far a period of
more than forty years, commencing in each instance from the date on which the
benefits of such exemption first become available and effective; and provided further
that with respect to a project which is or is to be permanently financed by a loan from
the New York city housing development corporation, the tax exemption shall operate
for so long as such loan is outstanding.
(a-1) Where the redevelopment contract between a mutual redevelopment company
and the local legislative body under which the initial tax exemption was granted
contains provisions different from those in subdivisions two, three, four and five of
section thirty-one of this chapter, then a contract to extend the tax exemption for an
additional period under paragraph (a) of this subdivision may provide that those
provisions of the redevelopment contract shall continue to apply (with such
modifications as the supervising agency of such mutual redevelopment company shall
approve) during the additional period as if such additional period were the initial
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period of tax exemption for such mutual redevelopment company, notwithstanding

the provisions of paragraph (a) of this subdivision to the contrary.
(a-2) Any inconsistent provision of law notwithstanding, in a city having a population
of one million or more, where a local legislative body has acted to extend the tax
exemption of a mutual redevelopment company for an additional twenty-five years
after the initial tax exemption period has expired, the local legislative body may
authorize tax exemption during the final eleven years of such additional twenty-five
year exemption period under this subdivision, provided that the amount of taxes to be
paid by the mutual redevelopment company during the final eleven years of such
additional twenty-five year exemption period shall not be less than an amount equal
to the greater of (i) ten per centum of the annual rent or carrying charges of the
project minus utilities for the residential portion of the project, or (ii) the taxes
payable by such company for the residential portion of the project in the fourteenth
year of such additional twenty-five year exemption period, and may further extend
the period of such additional twenty-five year exemption for up to a total period of
thirty-five years from the date of expiration of the initial tax exemption, provided that
the amount of taxes to be paid by the mutual redevelopment company during any
such extension beyond such additional twenty-five year exemption period shall not be
less than an amount equal to the greater of (i) ten per centum of the annual rent or
carrying charges of the project minus utilities for the residential portion of the project,
or (ii) the taxes payable by such company for the residential portion of the project in
the fourteenth year of such additional twenty-five year exemption period.
(a-3) Any inconsistent provision of law notwithstanding, the local legislative body of
any municipality may grant an additional tax exemption period for any project, other
than a project by a mutual redevelopment company, that received a tax exemption
under paragraph (a) of this subdivision, upon the expiration of the tax exemption
period. The additional tax exemption period may be for a term of forty years, or until
such time as the project is no longer operated under the restrictions and for the
purposes set forth in this article, whichever is sooner. Unless otherwise approved by
the local legislative body, the amount of taxes paid by the redevelopment company
during such additional tax exemption period shall not be less than (i) the taxes
payable by such company in accordance with the resolution for such redevelopment
company that was approved by the local legislative body and that was in effect
immediately prior to the expiration of the initial tax exemption period, or (ii) if there
is no such resolution, the taxes payable by such company in accordance with the
exemption authorized pursuant to this article immediately prior to the expiration of
the initial tax exemption period.
(a-4) Any inconsistent provision of law notwithstanding, in a city having a population
of one million or more, where a local legislative body has acted to extend the tax
exemption of a mutual redevelopment company for the maximum period provided for
in paragraph (a-2) of this subdivision, the local legislative body may grant an
additional tax exemption for a period of up to fifty years, provided that the amount of
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taxes to be paid during any such period of tax exemption shall be not /ess than an
amount equal to the greater of(i) ten per centum of the annual rent or carrying
charges of the project minus utilities for the residential portion of the project, or (ii)
the taxes payable by such company for the residential portion of the project during
the tax year commencing July first, two thousand and ending on June thirtieth, two
thousand one. Such grant of an additional tax exemption period shall take effect upon
the expiration of the maximum period provided for in paragraph (a-2) of this
subdivision.
(b) A redevelopment company which has been granted and has received tax
exemption pursuant to this section may at any time elect to pay to the municipality or
other appropriate taxing jurisdiction the total of all accrued taxes for which exemption
was granted and received, together with interest at the rate of five per centum per
annum. Upon such payment the tax exemption of the project shall thereupon cease
and terminate.
(c) Where a municipality acts on behalf of another taxing jurisdiction in assessing
real property for the purpose of taxation, or in levying taxes therefor, the said
agreement by the local le9isiative body of such municipality shall have the effect of
exempting the real property in a project from local and municipal taxes, other than
assessments for local improvements, levied by or in behalf of both such taxing
jurisdictions.
(d) As used in this subdivision the term "taxing jurisdiction" means any municipal
2. Any inconsistent provision of law notwithstanding, mortgages of any such company
issued to the federal government or any instrumentality thereof, or to any municipal
housing authority or other public housing agency or instrumentality thereof whose
obligations are determined to be exempt from federal taxation by the federal government,
or issued to a financial institution and insured or guaranteed by the federal housing
administrator or any other instrumentality of the federal government shall be exempt
from the mortgage recording taxes imposed by article eleven of the tax law.
History
add, L 1961, ch 803; amd, L 1965, ch 900, eff July 16, 1965; L 1968, ch 516, 16; L 1968,
ch 717; L 1969, ch 1121; L 1972, ch 641; L 1973, ch 471; L 1973, ch 1017; L 1978, ch 222,
eff June 5, 1978; L 1978, ch 314, eff June 19, 1978; L 1987, ch 140, Fj 1, eff June 15, 1957;
L 1993, ch 566, 3, eff July 28, 1993; L 2001, ch 118, 1 (Part EE), eff Aug 3, 2001; L
Page 5 of 5
2012, ch 415, 1, eff Aug 17, 2012; L 2013, ch 478, 1, eff Nov 13, 2013; L 2014, ch 531,
1, eff Dec i7, Z014.
>
Annotations

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Private blousing Finance Law
Article V
126. Reduced rentals for the elderly

(a) For the purpose of enabling lower income elderly persons to continue in occupancy
without paying rentals in excess of a fair proportion of their income, any municipality
having a population of less than one million is authorized to make and to contract to
make periodic payments to a redevelopment company in an amount not exceeding the
difference between the rent or carrying charges for the dwellings occupied by such lower
income persons and one-third of their net probable aggregate annual income, where such
rent or carrying charges exceed such one-third of income; provided that the aggregate
amount of periodic payments to be made in accordance with contracts entered into by the
municipality during any fiscal year thereof pursuant to this section, subdivision nine of
section thirty-one, subdivision seven of section eighty-five-a, and section five hundred
seventy-seven-a of this chapter shall not exceed the aggregate amount of all real
property taxes paid or payable during such fiscal year by ail companies organized
pursuant to this article, article II, article IV, and article XI of this chapter and the
aggregate estimated receipts of all such companies in such fiscal year from rental
surcharges collected or to be collected pursuant to this chapter.
(b) Such payments shall be made only where the contract between the municipality and
the company pursuant to section one hundred fourteen imposes income limitations on
admission and on continued occupancy and requires the payment of surcharges to the
municipality by over-income occupants.
(c) Such payments shall be made only on account of a person or family in occupancy
where the head of the household is sixty-two years of age or older and is not a recipient
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of public assistance pursuant to the social services law, and where the net probable
aggregate annual income of the person or family in occupancy does not exceed six
thousand five hundred dollars a year.
Notwithstanding the provisions of subdivision twenty-nine of section two of this chapter,
net probable aggregate annual income shall mean the annual income of family members
from all sources after deductions of federal, state and city income taxes; provided that
any municipality may provide that increases in benefits under the social security act which
take effect after such person or family has assumed occupancy shall not be taken into
account.
(d) A company having a contract with the municipality pursuant to this subdivision may
not collect from persons or families in occupancy on whose account such payments are
made any rentals in excess of the amounts specified in such contract.
History
Add, L 1972, ch 870, eff )uly 1, 1972; renumbered 1Z7, L 1979, ch 579, 1, eff 7uly 10,
1979; L 1972, ch 641; L 1973, ch 666; L 1973, ch 921; L 1974, ch 730; L 1975, ch 208, 9
-12, eff June 17, 1975.
~ Annotations


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MY CLS Priv Hour Fin 127

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Private dousing Finance Law
Article V
Redevelopmen[ Companies
~ 127. Acquisition by mutual redevelopment companies

Anything in this article to the contrary notwithstanding:
(a) With the approval of the supervising agency, any person owning a project may
convey such project to a mutual redevelopment company and a mutual
redevelopment company may be organized to acquire an existing project prior to
expiration of an initial tax exemption granted pursuant to section one hundred
twenty-five, and may own, maintain, operate, sell, and convey such project pursuant
to this article. In part payment of the purchase price therefor, such company may
execute and deliver a bond and mortgage or an issue of bonds under a trust
indenture, the aggregate principal amount of which does not exceed ninety per
centum of such purchase price, and which shall be secured by a first mortgage upon
all the real property of which such project consists. Such bonds are hereby declared
securities in which all public officers and bodies of the state and of its municipal
subdivisions, all insurance companies and associations, ail savings banks and savings
institutions, including savings and loan associations, executors, administrators,
guardians, trustees, and ail other fiduciaries in the state may properly and legally
invest the funds within their control. The total capital created and bonds or
debentures issued by such mutual redevelopment company shall not exceed the total
cost of the purchase of the project and an allowance for working capital not greater in
amount than three per centum of such cost.
(b) With the consent of the local legislative body, any initial tax exemption granted
pursuant to section one hundred twenty-five, shall continue after conveyance of a
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project to a mutual redevelopment company for the period of years originally

provided for in the contract, or for the unexpired portion thereof if such period shall
have commenced, subject to prior termination pursuant to section one hundred
twenty-four or section one hundred twenty-five, and this article shall continue to be
applicable to such project as though such project had been initially undertaken by
such mutual redevelopment company; provided, however, that nothing herein shall
require the resubmission of the plan of the project and the contract relating thereto
for approval pursuant to section one hundred fourteen. The contract may, with the
approval of the local legislative body and of the holder of the mortgage on the
project, be modified in a manner consistent with this section.
History
Add, L 1972, ch 641, eff May 30, 1972; renumbered 127, L 1979, ch 579, 1, eff July 10,
1979.
~ Annotations

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Article V
~ 128. Resale price of shares

Notwithstanding any other provision of this article and subject to any regulation not
inconsistent with this section which may be promulgated by the supervising agency:
(a) The resale price of shares in a mutual company shall be fixed by the mutual
company, subject to the approval of the supervising agency, and shall be equal to (1)
the consideration the selling tenant-cooperator paid for such shares and (2) any
capital assessments and voluntary capital contributions approved by the supervising
agency and paid by the selling tenant-cooperator to the mutual company, to the
extent not already included in the consideration paid for such shares, and, if
established by the mutual company,(3) a proportionate share of the actual aggregate
amortization paid on all existing and prior mortgages on the project in reduction of
total outstanding principal indebtedness during such period as shall be fixed by the
board of directors of the mutual company, to the extent not already included in the
consideration paid for such shares, and (4) reasonable administrative charges.
(b) The aggregate amount to be paid to the selling tenant-cooperator with respect to
the sale of the selling tenant-cooperator's shares shall be fixed by the board of
directors of the mutual company, subject to the approval of the supervising agency,
and shall be equal to (1) the consideration the selling tenant-cooperator paid for such
shares,(2) any capital assessments and voluntary capital contributions approved by
the supervising agency and paid by the selling tenant-cooperator to the mutual
company, to the extent not already included in the consideration paid for such shares,
and (3) a proportionate share of the actual aggregate amortization paid by the selling
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tenant-cooperator on all existing and prior mortgages on the project in reduction of

total outstanding principal indebtedness during such period as shall be fixed by the
board of directors pursuant to subdivision (a) of this section, to the extent not already
included in the consideration paid for such shares. To the extent that a selling tenantcooperator may be entitled to an amount less than the resale price of his shares, the
difference shall be retained by the mutual company.
(c) The board of directors may, subject to the approval of the supervising agency,
establish a general policy pursuant to which a selling tenant-cooperator who had
occupied more than one dwelling uniT is paid an amount measured by his
proportionate share of the actual aggregate amortization paid during his period of
occupancy on all existing or prior mortgages on the project. To the extent that a
selling tenant-cooperator may be entitled to an amount greater than the resale price
of shares, the difference may be paid to the selling tenant-cooperator by the mutual
company.
(d) The "proportionate share of the actual aggregate amortization paid on all existing
and prior mortgages on the project" referred to in subdivision (a) of this section shall
be in the same ratio to such actual aggregate amortization as the number of shares
held by the selling tenant-cooperator at the time of sale bears to the total number of
shares of issued and outstanding capital stock of the mutual company during such
period.
(e) Nothing contained in this section shall prohibit the continued use of any method
of calculating resale price adopted by a mutual company and approved by the
supervising agency prior to the effective date of this section.
History
Add, L 1983, ch 683, 3, eff July 26, 1983.
Annotations

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Terms:"Gould" New York Consolidated haws "Private Housing Finance Law" "article II"
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DOCUMENT 6
TITLE 28 RCNY,CHAPTER 3(PHFL
ARTICLE 2 COMPANIES)
~~
Section 3-01: Sponsors and PubliciCy.
Page 1 of 1

Home > Section 3-Oi: Sponsors and Publicity.

Title 28: Department of Housing Preservation and Development ~,i > Chapter 3: Cityaided Limited Profit Housing Companies ~,~
(a) Sponsorship of development. Applicants for sponsorship of alimited-profit housing
company development shall furnish to the Department of Nousing Preservation and
Development, hereinafter referred to as "HPD",
(1) an application for approval of the site and sponsors,
(2) evidence of financial ability and other qualifications, and
(3) such other data or information as HPD shall require. Applications, financial data and
information with respect to qualifications shall be in such form and substance as HPD
shall, from time to time, require. All references herein to "housing company" shall be
deemed to mean limited-profit housing company.
(b) Eligibilityletter of intent. In addition to other requirements, a person or
organization shall be ineligible for final approval as a sponsor of a housing company
development unless such person or organization complies with all of the policies of the
HPD Office of Community Partnerships.
(c) Publicity by sponsor. No public announcements of any kind with respect to the
housing company development shall be made by the sponsor without prior written formal
approval of HPD.
Source URL: http://rules.citvofnewvork.us/contenUsection-3-01-sponsors-and-publicity
Links:
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Section 3-02: Rental or Sale of Space and Solicitation of DeposiCs.
Page 1 of 13

Home > Section 3-02: Rental or Sale of Space and Solicitation of Deposits.

Title 28: Department of Housinq Preservation and Development n> > Chapter 3: Cityaided Limited Profit Housing Companies ~,~
(a) Priority of applicants for dwelling unitsinitial rent up period. All inquiries and
applications for the purchase of shares or rental of dwelling units received within 10 days
of the public announcement about the development by HPD shall be treated on a par with
each other regardless of the actual date of receipt of inquiry, application or deposit. In
order to receive consideration, all inquiries shall be in writing and directed to the housing
company, which shall note the date of receipt thereon. All correspondence addressed to
the housing company or sponsor relating to the proposed development shall be
acknowledged within ten (10) days of its receipt.
(b) Offer to rent or sell during initial rent up period. No housing company shall advertise
or offer to rent any space or sell any cooperative shares without prior written approval of
HPD. Advertisements shall include language as follows: "Equal Housing Opportunity" and
"supervised by N.Y.C. Department of Housing Preservation and Development."
Advertisements shall also include language as follows: "Only one request for an
appiicatio~ per person shall be permitted."
(c) Rental schedule and charges. No housing company shall rent or lease any dwelling
units or other rental space or equipment until the schedule of rentals or of carrying
charges and equity payments for the entire housing development company has been
approved in writing by HPD. No change in the schedule or in the accommodations in the
development shall be made without prior written approval of HPD.
(d) Prerequisites to rental or sales. The rental or leasing of space shall not be
commenced by a housing company until:
(1) in the case of a cooperative housing company (hereinafter referred to as a "mutual
housing company"), the Information Bulletin shall be accepted for filing by the Department
of Law of the State of New York pursuant to 352-e of the General Business Law.
(2) The sponsoring agreement, restricted bank account, and required insurance
coverage have been provided by the housing company and approved, in writing, by HPD.
(3) The sales or rental agreement, blanket position bond, and resolution of the Board of
Directors of the housing company authorizing the agreement have been approved by
HPD.
(4) Ail application forms, subscription agreements, occupancy agreements, receipts,
and all other forms proposed to be used by the housing company must be approved in
writing by HPD before they are used.
(e) Solicitation of deposits. Deposits from applicants for dwelling units shall not be
solicited- or accepted by the housing- company::until after the development- has been
approved by the State Division of Housing and Community Renewal, the housing
company has been duly organized, and the development has been approved by the Board
of Estimate or its successor.
(~ Procedure for deposits. Deposits shall not exceed $100 per dwelling unit, nor shall
deposits be solicited or accepted until HPD has approved in writing:
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(1) The form of receipt, and

(2) The opening of a trust account in which all deposits are required to be promptly
deposited in the name of the housing company (or such other person or organization
designated by HPD), and
(3) The proposed selling agent. Deposits shall be accepted by the housing company by
check or money order only, payable to the housing company. In the case of a mutual
housing company, all funds so received shall be deposited in said account and shall bear
the title "Capital Trust Account' after the name of the housing company. Funds on deposit
in said trust account shall be restricted and subject to withdrawal only upon the filing of a
written authorization signed by a designee of HPD.
(4) All other criteria set forth in this section governing rental of dwelling units or sale of
shares.
(g) Form of receipt. The receipt for the deposit shall clearly state that no monies in
addition to the deposit may be collected as a further or final payment until HPD has (1)
authorized the receipt by the housing company of further payments, and (2) approved the
provisions of the subscription and occupancy agreement in the case of a mutual housing
company development or of the lease agreement in the case of a rental development.
(h) Filing of applications, eligibility, investigation of applicants, waiting lists.
(1) Every housing company shall have adequate supplies of applications on hand at all
times at its business and sales office.
(2) Any bona fide resident of the State of New York who has reached his/her majority
under the laws of the State of New York may file an application for the lease of a dwelling
unit in a rental housing company or the purchase of shares in a mutual housing company,
provided, however, that in developments assisted by a project-based Section 8 contract
under the United States Housing Act of 1937, as amended, or assisted by a contract
under Section 236 of the National Housing Act, as amended, any legal resident of the
United States who has reached his/her majority under the laws of New York may file an
application for such lease or such purchase of shares. No condition or limitation shall be
imposed upon an applicant in connection with the filing or execution of an application
other than:
(i) an application fee;
(ii) non-returnable fees to cover the cost of credit investigation, home visit or
administrative costs; and
(iii) conditions set forth in applicable governmental authorizations, Land Disposition
Agreements or other documents of such public nature. The application and non-returnable
fees shall be in amounts approved by HPD. No applicant can be refused a place on an
external waiting list for reason of financial ineligibility. Financial eligibility shall be
determined at the time an apartment is offered. However, applicants shall be advised of
the financial eligibility requirements at the time of applying.
(3) Applications shall be consecutively numbered and dated upon receipt by the
housing company or shall be numbered pursuant to order of selection by lottery, as
applicable. The housing company or its managing agent shall provide an applicant with a
dated receipt or other form of documentation setting forth the date and/or waiting list
number of the application: Applicants must meet the occupancy standards at the time of
application. No applicant may be placed on more than one waiting list by bedroom size in
a particular housing company development.
(4) Each application, together with income and occupancy information and other data
as hereinafter specified, shall be investigated by the housing company at the time an
apartment is offered to determine the eligibility of the applicant. The data received by any
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Section 3-02: Kental or Sale of Space and Solicitation of Deposits.
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housing company relative to tenant income shall be regarded as confidential in nature and
protected accordingly to the extent permitted by law. In the case of a mutual housing
company development, applicants approved by the mutual housing company shall upon
notification of such approval be required to pay the balance of the purchase price of the
shares allocated to the apartment. Thereafter, such application, together with supporting
data, including a satisfactory credit history, and, in the case of a mutual housing company
development, one copy of the contract for sale of shares approved by the housing
company, shall be forwarded to HPD for its approval. Home visits conducted in connection
with a
credit check are permitted.
(5) Except for developments governed by 3-21 of these rules, no applicant shall be
given possession of an apartment until his or her application has been approved by HPD
and he or she has executed an occupancy agreement or lease.
(6) Applications which are rejected by a housing company without being submitted to
HPD shall have clearly marked thereon the reason for disapproval and shall be kept for a
period of time as HPD may direct, and shall be available for examination by HPD. The
applicant shall be advised in writing of the reason for his or her rejection.
(7) The housing company may adopt a policy permitting or prohibiting guarantors that
must be applied uniformly to all applicants. Where an applicant requires a guarantor to
guarantee payment of rent/carrying charges to a housing company that has adopted a
policy permitting guarantors, the managing agent shall conduct a credit check and income
review of the guarantor to assure that guarantor is financially responsible.
(8) (i) All housing companies, whether mutual or rental, shall maintain waiting lists on
forms approved by HPD for all tenanUcooperator applications for apartments, listed in
chronological order, by apartment size, by date of receipt or by order of selection by
lottery, as applicable. All eligibility requirements for age, residency and family composition
must be met by the cut-off date for the lottery. As used in this chapter, the term
"tenant cooperator" shall mean a tenant residing in an apartment in a rental development
and/or a shareholder/proprietary lessee residing in an apartment in a mutual housing
company development, as the case may be. These master waiting lists shall be kept in the
management office. A conformed copy of the master waiting lists by apartment size shall
be sent to HPD. Thereafter, on asemi-annual basis, or more frequently if requested by
HPD, updated waiting lists shall be submitted to HPD. The waiting lists
must reflect the status of each application, i.e. who received an apartment, who declined
an apartment, who withdrew, or any other circumstances, including dates the actions were
taken.
(ii) The opening and closing of all waiting lists shall be subject to prior written approval
of HPD. A housing company wishing to open a waiting list shall present HPD with a written
proposal of its contemplated publicity efforts. The proposal shall require plans for the
outreach to members of minority groups who would otherwise be unlikely to learn of these
available housing opportunities. The plan shall include advertisement in at least two daily
newspapers of general circulation and two publications known to have high readership
amongst minorities, and shall contain language as set forth in subdivision (b) of this
section: The plan shall be presented to HPD thirty days in advance of the projected date
for commencement of advertising. A housing company opening a closed waiting list shall
select applicants by a lottery to be approved by HPD. When a list has sufficient names on
it to last for three years, the list may be closed by HPD. Waiting lists for
various size apartments may be closed at different times as the particular apartment-size
list attains sufficient names.
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(iii) No application shall be taken or deposit accepted for a position on the waiting list
subsequent to the official ciosi~g of such waiting list. Any application added to the waiting
list after the official closing date shall be rejected by HPD.
(9) Each applicant and members of his or her household shall furnish an affidavit
attesting to the gross household income for the preceding year and the anticipated gross
household income for the current year. Each applicant and members of his or her
household shall also be required to furnish to the housing company or HPD certified
copies of tax returns filed by them with the Internal Revenue Service ("IRS") and the New
York State Department of Taxation and Finance for the preceding or subsequent years for
admission purposes as well as during their occupancy of a dwelling unit of the
development. Applicant and members of his or her household shall assume the cost of
obtaining certified copies for these purposes. Failure to provide certified tax returns when
requested for admission purposes shall result in rejection of the application; failure to
provide certified copies during occupancy shall result in imposition of maximum
surcharges upon the
tenanUcooperator.
(10) The waiting list shall be printed in a legible manner and shall be available for
inspection by members of the Board of Directors, members of the Tenants Association,
residents of the development, city o~cials and applicants.
(11) If, at any time, an applicant's name has been omitted from a waiting list in error,
and said applicant can present adequate documentation satisfactory to the housing
company or its managing agent to substantiate an earlier date of application for an
apartment, applicants name shall be inserted into the waiting list in the corrected date
order. Insertions to the waiting list shall be submitted to HPD for prior written approval.
(12) Except for the priorities mentioned below, the waiting list by apartment size in
chronological order by date of receipt of application or order of selection by lottery, as
applicable, shall be maintained in the following manner:
Type Apartment Desired

(Example: 1 Bedroom)
Date of
Request
1/1/69
Name
J. Doe
Address
Business
Telephone
Residence
Telephone
Veteran
yes or no
XXX Ave.
Y
123-4567
765-5432
yes
Selections of tenants or cooperators must be made from this Jist in chronological order
or order of selection by lottery, as applicable.
(13) Notwithstanding anything to the contrary contained in this subdivision, an applicant
on a waiting list for the (ease of a dwelling unit in a rental housing company development
or the purchase of shares in a mutual housing company development who, while he or
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Section 3-02: Rental or Sale of Space and Solicitation of Deposits.
Pale 5 of 13
she is on such waiting list, occupies a dwelling unit in such development in violation of this
chapter, shall be removed from such waiting list.
(i) Occupancy priorities. The following occupancy priorities shall apply to alI housing
companies:
(1) First priority. TenanUcooperators currently residing in a development whose
household composition renders them eligible for a larger or smaller apartment shall be
given first priority for an internal transfer. First preference shall be given to
tenant/cooperators who are moving to a smaller apartment. No priority shall be given to
residents seeking additional apartments for members of their household, or for nonresident family members or any other parties. The housing company shall maintain an
internal transfer list by apartment size, listed in chronological order by date of receipt of
transfer request. If, at any time, a tenanUcooperator's name has been omitted from the
internal transfer list in error, and said tenant/cooperator can present adequate
documentation satisfactory to the housing company or its managing agent to substantiate
an earlier request for a transfer, said tenant/cooperator's name shall be inserted into the
internal
list in the corrected date order. Insertions to the internal transfer list shall be submitted to
HPD for prior written approval.
A tenanUcooperator on an internal transfer list, whose household composition so
changes as to render him or her ineligible for the apartment size requested, shall be
placed on the appropriate size apartment list as of the date when the change occurred or
the date the original request is made, whichever is later; provided, however, that, except
for enlargement of a household due to birth or adoption, the change to a larger household
composition must have occurred at least one year prior to placement on the internal
transfer list. If a tenanUcooperator is offered an apartment as an internal transfer and he or
she is no longer eligible for that size apartment due to a change in household composition,
his or her name shall then be placed on the appropriate size apartment list as of the date
when the change occurred which made him or her ineligible.
The tenant/cooperator must meet the occupancy standards for the size apartment
requested at the time that he or she places his or her name on the internal transfer list and
must have been in residence for a period of no less than one year before he or she may
request a transfer to a larger apartment. The income affidavit submitted by the
tenanUcooperator on file with the housing company or its managing agent must reflect a
sufficient number of occupants to warrant a transfer at the time of his or her request, as
well as when an apartment is offered. The housing company or its managing agent shall
deny a transfer to the tenanUcooperator if he or she fails to satisfy these requirements. No
transfer request will be accepted based on pregnancy. No transfer of apartments shall be
effected if the tenanUcooperator seeking the transfer is in arrears in rent/carrying charges,
surcharges, capital assessments, submetering charges or any other fees or charges. The
housing
company shall advise the tenanUcooperator in writing of its denial of a request for transfer.
The tenant cooperator shall be required to pay a surcharge effective the first day of the
month following his or her residency in the new apartment if his or her income exceeds the
maximum allowable for that apartment.
(2) Second priority. Pursuant to 31(7) of the Private Housing Finance Law, preference
in admission to a project with an open waiting list, as determined by HPD, shall be given
to veterans as such term is defined pursuant to 85 of the Civil Service Law, and for
projects with a closed list, as determined by HPD, preference shall be given upon the
opening of the waiting list to such veterans.
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(3) Fourth priority. Persons listed on the external waiting lists by apartment size in strict
chronological order by date of receipt of application or order of selection by lottery, as
applicable. Family members of a tenanUcooperator, whether or not members of the
tenanUcooperator's household, shall not receive preferential treatment on the waiting lists.
(4) The above priorities shall not be applicable to staff or student housing or to housing
for the elderly or disabled except as such priorities apply within each special category.
Preference in admission to any development or to such portion of any development which
has been specifically designed for occupancy by elderly or disabled persons, as the case
may be, shall be given to such persons.
Q) Application fee for rentals and mutual housing companies. A rental or mutual
housing company development may require an application fee of up to $200 at the time of
submission of an application for an apartment. Any deviation from this subdivision Q)
requires prior written approval from HPD. Said application fee is to be returned in full
without interest if the housing company rejects the application. The housing company may
retain a reasonable portion of the application fee, not to exceed fifty dollars, for
administrative costs if an applicant withdraws his or her application. If an apartment is
offered to an applicant and the applicant does not accept the apartment, the housing
company may remove the applicant from the waiting list and retain part or all of the
application fee for a processing fee. A housing company may elect to offer an applicant an
apartment for a second or third time, but such additional offers are not mandatory.
(k) Security deposit for purchase of cooperative shares. A mutual housing company
may, at its option, require an applicant for a mutual housing company apartment to submit,
along with his/her written acceptance of said apartment, a security deposit of up to one
month's carrying charges which may be retained by the housing company and
apportioned between the housing company and the outgoing cooperator to reimburse
them respectively for their losses in the event the applicant withdraws his or her
acceptance of the apartment.
(I) Verification of income at time of admission and during occupancy. (1) Admission
income verification. The housing company or its managing agent shall verify the
aggregate income of each applicant and members of his or her household prior to
admission to the development in the following manner:
(i) Each applicant shall furnish an affidavit attesting to the gross household income of
his or her household for the preceding year and the anticipated gross household income
for the current year. All members of the household must be listed on the income affidavit
whether or not income was earned.
(ii) Each applicant and each member of the household having any income shall furnish
proof of income by supplying copies of W-2 forms filed by them for the preceding year, or
a statement from their employer setting forth their current rate of income and their total
earned income for the immediately preceding year and a copy of their IRS or New York
State income tax returns for the immediately preceding year. HPD or the housing
company may require submission of certified income tax returns for admission purposes.
Each self-employed applicant and self-employed member of the household who will reside
with the applicant shall furnish a certified copy of his or her IRS and New York State
income tax returns for the immediately preceding year: Applicants and members of the
applicants household shall pay the cost of obtaining certified copies of their income tax
returns.
(iii) A copy of amendments to any tax returns, or of tax assessments shall be furnished
to the housing company within 30 days after filing the amendment or receipt of notice of
the assessment.
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(iv) Additional proof of eligibility may be requested by the housing company or HPD.
(2) Income verification during occupancy. During occupancy, a tenant/cooperator and
members of his or her household shall submit when requested by the housing company,
its managing agent or HPD certified copies of their IRS andlor New York State income tax
returns for audit or verification purposes with regard to continued eligibility, surcharges or
any other valid purpose. The tenanUcooperator and members of his or her household shall
assume the cost of obtaining such certified copies.
(3) Failure to provide certified income tax returns or other documentation. Failure to
provide certified copies of income tax returns or other required documentation shall result
in denial of admission to new applicants and imposition of the maximum surcharge to
those already in occupancy.
(m) Occupancy standards. (1) Apartments shall be offered for occupancy as they
become vacant in accordance with the standards set forth below (occupancy standards
shall be applied without regard to the pending birth or pending adoption of a child):
(i) Efficiency apartments (no bedrooms). One (1) or two (2) persons.
(ii) One (1) bedroom apartments. Two (2) or three (3) persons shall occupy a onebedroom apartment. A single person may occupy aone-bedroom apartment if the
development has less than ten percent(10%)efficiency apartments.
(iii) Two (2) bedroom apartments. No fewer than three persons, a brother and a sister
who are both adults, or a parent or guardian with at least one child.
(iv) Three (3) bedroom apartments. No fewer than (A) five (5) persons,(B) parents) or
guardians) with two children of the opposite sex,(C) a household of three adults with one
child where at least one adult is the parent or guardian of such child, or (D) a household of
one parent or guardian and his or her three children shall occupy athree-bedroom
apartment.
(v) Four (4) bedroom apartments. No fewer than (6) persons.
(vi) All apartments. In all cases the tenanUcooperator named on the lease must be at
least eighteen years of age and must actually occupy the apartment as his or her primary
residence.
(vii) HPD may grant waivers of occupancy standards for medical reasons.
(2) Priority shall be given to internal transfers in the offering of all vacant apartments.
(n) Lease and occupancy agreements. (1) No tenanUcooperator shall be permitted to
occupy an apartment until an executed lease or occupancy agreement has been approved
by HPD. The minimum term of such lease or occupancy agreement shall be one year.
(2) No tenanUcooperator shall have the right to sublet without prior written approval of
HPD and the housing company, which only shall be given in exceptional circumstances,
including, but not limited to, military service. No tenant cooperator shall have the right to
assign his or her lease/occupancy agreement.
(3) No tenant/cooperator may accept any consideration or thing of value from a guest,
invitee or other occupant in exchange for occupancy, whether temporary or permanent,
unless such person is listed on the application, income affidavit or recertification of the
tenanUcooperator and the tenant cooperator continues to maintain the apartment as his or
her primary residence.
(4) It is required.that the apartment of the.#enant/cooperator be at initial occupancy and
continue to be his or her primary place of residence. The facts and circumstances to be
considered in determining whether a tenanUcooperator occupies a dwelling unit as his or
her primary residence include, but are not limited to, whether such tenanUcooperator
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(i) specifies an address other than such dwelling unit as his or her place of residence or
domicile in any tax return, motor vehicle registration, driver's license or other document
filed with a public agency,
(ii) gives an address other than such dwelling unit as his or her voting address,
(iii) sublets or permits unauthorized persons to occupy the dwelling unit without written
approval by HPD and the housing company or attempts to assign such dwelling unit, or
(iv) spent less than an aggregate of one hundred eighty-three days in the preceding
calendar year in the City at such dwelling unit (unless such individual is in active service in
the armed forces of the United States or took occupancy at such dwelling unit during the
preceding calendar year). However, no dwelling unit may be considered the primary
residence of the tenant/cooperator unless the tenant/cooperator's name is listed on
income documentation that must be sent by the tenant/cooperator to the Department or to
any other governmental agencies (for example: income affidavits, re-certifications or
Section 8 forms) for the most recent preceding year for which such documentation was
required. No dwelling unit may be considered the primary residence of the
tenanUcooperator unless the tenanUcooperator provides proof that he or she either filed a
New York City Resident Income Tax return at the claimed primary residence for the most
recent preceding
taxable year for which such return should have been filed or that the tenanUcooperator
was not legally obligated to file such tax return pursuant to 1705(b)(1)(A) and 1751(a) of
the Administrative Code due to residency in a foreign country or pursuant to 11-1751(a)
of the Administrative Code and 6-01 of the Tax Law because the tenanUcooperator's
income for such year was below that required for the filing of a return or pursuant to 893
or 894 of the internal Revenue Code due to employment by a foreign government or
international organization or due to any treaty obligation of the United States which applies
to such taxpayer. The tenanUcooperator whose residency is being questioned will be
obligated to provide proof that his or her apartment is his or her primary place of
residence, including, but not limited to certified New York State income tax returns, utility
bills, and voter registration data.
(5) The terms and conditions of all licensing agreements and all tenancies, including
tenancies of commercial and professional space, shall be subject to HPD written approval.
(o) Applicability of Section 235-F of the Real Property Law. (1) Definition of terms.
Section 235-f of the Real Property Law of the State of New York shall apply to ail housing
companies, subject to the restrictions set forth in this section. As used in this subdivision
(o), the term "occupant' shall mean a person, other than a tenanUcooperator, residing
together with the tenant/cooperator in an apartment in a rental or mutual housing company
development subject to these rules, who is not a party to the lease or occupancy
agreement, including, but not limited to, a member of a tenanVcooperator's immediate
family, whose occupancy has been approved by the housing company and HPD.
(2) Admission and eligibility requirements for occupants.
(i) No tenanUcooperator shall permit a person to "co-occupy" the tenanUcooperator's
apartment without first obtaining the written approval of the housing company and/or HPD,
except as specified in subdivision (p) of this section. Such approval shall be sought by the
tenanUcooperator and the proposed occupant, submitting to the housing company through
its managing agent the same financial information as is required to be submitted by any
tenanUcooperator.
(ii) The housing company and/or HPD may reject any proposed occupant:
(A) For the same reasons that the housing company and/or HPD would reject the
application of a person who applies to become a tenant/cooperator of a vacant apartment,
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provided that no rejection shall be based on the financial ability of a proposed occupant to
pay the renUcarrying charge for the apartment if the tenant/cooperator has adequate
financial ability to pay such renUcarrying charge; or
(B) when the acceptance of a proposed occupant would result in the apartment being
occupied contrary to the occupancy standards for apartments set forth in subdivision (m)
of this section; or
(C) when the acceptance of a proposed occupant would result in the apartment being
occupied in violation of the income eligibility requirements of the Private Housing Finance
Law or these rules, or
(D) when the acceptance of a proposed occupant would violate the income eligibility or
other occupancy standards or requirements of any other federal, state or city program
applicable to such apartment.
(3) Status of occupant.
(i) No occupant, except as otherwise set forth in subdivision (p) of this section, shall
have any rights under the (ease/occupancy agreement for the apartment or to succeed to
the rights of the tenant/cooperator, if the tenancy of the tenanUcooperator terminates.
Acceptance by the housing company of full or partial payment of renUcarrying charges
from an occupant, by check or otherwise, shall not give the occupant any rights of tenancy
under the lease/occupancy agreement or otherwise.
(ii) Each occupant shall be required to furnish to the housing company such financial
and other information, on an annual or more frequent basis, that the tenanUcooperator is
required to furnish to the housing company, in the form that the tenanUcooperator is
required to furnish such information, including by affidavit. Where the rental or carrying
charge for an apartment, or a rental surcharge, is based on the income of persons
residing in the apartment, the income of the occupant shall be included in such computation.
(iii) The tenant/cooperator and the occupant shall occupy the apartment as their
primary residence, and the occupant shall represent his or her intention to do so prior to
commencing occupancy.
(p) Occupancy rights of family members. (1) The rights of family members of a
tenanUcooperator who have requested to remain as the lawful tenanUcooperator are
governed by policies and procedures set forth in this subdivision, except in those
instances where this subdivision is preempted by the rules or regulations of other federal,
state or city programs.
(2) As used in this subdivision the following definitions shall apply:
(i) "TenanUCooperator" shall mean any person named on a lease as a lessee or who is
a party to a rental agreement or proprietary lease and obligated to pay rent or carrying
charges for the use or occupancy of an apartment.
(ii) "Family member" shall mean:
(A) A husband, wife, son, daughter, stepson, stepdaughter, including any adopted
children father, mother, stepfather, stepmother, brother, sister, nephew, niece, uncle, aunt,
grandfather, grandmother, grandson, grandaughter, father-in-law, mother-in-law, son-inlaw, or daughter-in-law of the tenanUcooperator.
(B) Any other person residing with the tenanUcooperator in the apartment as a primary
residence who can prove emotional and financial commitment and interdependence
between such person and the tenanUcooperator. Although no single factor shall be
determinative, evidence which is to be considered in determining whether such emotional
and financial commitment and interdependence existed shall be the income a~davit filed
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by the tenanUcooperator for the apartment and other evidence which may include, without
limitation, the following factors:
(a) longevity of the relationship;
(b) sharing of or relying upon each other for payment of household or family expenses,
and/or other common necessities of life;
(c) intermingling of finances as evidenced by, among other things, joint ownership of
bank accounts, person and real property, credit cards, loan obligations, sharing a
household budget for purposes of receiving government benefits, etc.;
(d) engaging in family activities by jointly attending family functions, holidays and
celebrations, social and recreational activities, etc.;
(e) formalizing of legal obligations, intentions, and responsibilities to each other by such
means as executing wills naming each other as executor and/or beneficiary, granting each
other a power of attorney and/or conferring upon each other authority to make health care
decisions each for the other, entering into a personal relationship contract, registering a
domestic partnership pursuant to Executive Order No. 48, dated January 7, 1993 or Local
Law No. 27 of 1998, serving as a representative payee for purposes of public benefits, or
other such formalizations;
(fl holding themselves out as family members to other family members, friends,
members of the community or religious institutions, or society in general, through their
words or actions;
(g) regularly performing family functions, such as caring for each other or each other's
extended family members, and/or relying upon each other for daily family services;
(h) engaging in other patterns of behavior, or other action which evidences the intention
of creating along-term, emotionally committed relationship.
In no event shall evidence of a sexual relationship between such persons be required or
considered.
(iii) "Disabled person" shall mean a person who has an impairment which results from
anatomical, physiological or psychological conditions, other than addiction to alcohol,
gambling, or any controlled substance, which is demonstrable by medically acceptable
clinical and laboratory diagnostic techniques and which is expected to be permanent and
to substantially limit one or more of such person's major life activities.
(iv) "Senior citizen" shall mean a person who is sixty-two (62) years of age or older.
(3) Unless otherwise prohibited by occupancy restrictions based upon income
limitations pursuant to federal, state or local law, regulations or other requirements of
governmental agencies, if the tenanUcooperator has permanently vacated the apartment,
any member of such tenanUcooperator's family, who has resided with the
tenant/cooperator in the apartment as a primary residence, as determined by 3-02 (n)(4)
of these rules, fora period of not less than two years immediately prior to the
tenanUcooperator's permanent vacating of the apartment, and whose name is listed on
any income documentation submitted by such tenanUcooperator to the Department or to
any other governmental agencies (for example: income affidavits, re-certifications or
Section 8 forms), for at least the two consecutive annual reporting periods immediately
prior to the tenant/cooperator's permanent vacating of the apartment or where such
person seeking succession rights is a
senior citizen or disabled person, for a period of not less than one year immediately prior
to the tenanUcooperator's permanent vacating of the apartment, and has appeared on
such income documentation for at least the reporting period immediately prior to the
permanent vacating of the apartment by the tenanUcooperator, or from the inception of the
tenancy or commencement of the relationship if for less than such periods, and the
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apartment was and continues to be the primary residence of the member of the
tenant/cooperator's family that resided with such tenant/cooperator, may request to be
named as a tenant/cooperator on the (ease and where applicable on the stock certificate.
In the event that HPD has authorized the housing company not to collect surcharges
based on income documentation, the family member shall be asked to provide other
evidence of occupancy for the required period of time. The burden of proof is on said
family member to show use of the apartment as his or her primary residence during the
required period to be eligible to succeed to possession.
(4) Family members do not have the right to succeed the tenanUcooperator in
occupancy if the housing company terminates the tenancy of a tenanUcooperator for
cause.
(5) The minimum periods of required residency set forth in this section shall not be
deemed to be interrupted by any period during which the family member who is seeking
succession rights temporarily relocates because he or she:
(i) is engaged in military duty;
(ii) is enrolled as a full-time student, and the family member resided in the subject
apartment as a primary residence (as determined pursuant to paragraph 4 of subdivision
(n) of this section) for at least two years immediately prior to the family member's
enrollment as a full-time student;
(iii) is not in residence at the apartment pursuant to a court order not involving any
terms or provisions of the (ease/occupancy agreement, and not involving any grounds
specified in the Real Property Actions and Proceedings Law;
(iv) is engaged in employment requiring temporary relocation from the apartment;
(v) is hospitalized temporarily for medical treatment; or
(vi) has other reasonable grounds that shall be determined by HPD upon application by
such person.
(6) The housing company shall secure credible evidence of the tenanUcooperator's
permanent removal from the apartment and the surrender of the apartment or the
tenanUcooperator's written declaration to vacate the apartment prior to the consideration
of reletting or succession to the apartment by a family member.
(i) Where a tenant/cooperator has died, the lease and shares of stock for such
decedents apartment shall be surrendered by the decedents estate or survivors for
redemption. The housing company, upon written request received from any member of
such deceased tenanUcooperator's family who has resided with the deceased
tenanUcooperator in the apartment as a primary residence as set forth in paragraph (3) of
this subdivision, shall sell or transfer the shares and/or the lease to said family member.
(ii) In the event that that is a legal dispute or claim involving the rightful ownership of the
stock assigned to an apartment in a mutual housing company, pending a determination
thereof by an appropriate tribunal or court of law, such family members as set forth in
paragraph (3) of this subdivision shall continue to be permitted to reside in the apartment.
(iii) If the appropriate tribunal or court of law shall determine that someone other than
such family members as set forth in paragraph (3) of this subdivision is entitled to the
ownership of the stock then, upon presentation of a court order or other valid evidence,
such. new. owner shall. be permitted solely.to surrender the.stock to the. housing. company
for redemption pursuant to the applicable provisions of the Private Housing Finance Law.
in such event, such family members in occupancy as set forth in paragraph (3) of this
subdivision shall be afforded a reasonable opportunity to purchase the stock from the
housing company for the price authorized pursuant to the Private Housing Finance Law
and 3-06 of this chapter.
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(7) The housing company and/or HPD shall have the option of requiring any proposed
successor to move to a smaller apartment in the development, in the event the apartment
in question is or would become underoccupied according to occupancy standards set forth
in subdivision (m)of this section.
(8) Where a family member applies to the housing company for permission to remain in
occupancy as a tenanUcooperator, the housing company shall act on the application
within thirty (30) days of receipt by either requesting that HPD approve the application or
by denying the application and notifying the applicant family members in writing of its
determination.
(i) In the event the housing company denies such application, the notice to the applicant
shall set forth in writing the reasons why the evidence submitted was deemed inadequate
and resulted in such denial and inform the applicant of the right to appeal and the method
of appeal.
(ii) A family member whose application to succeed to a lease or an occupancy
agreement has been denied by a housing company may, within thirty (30) calendar days
of receipt of the written denial, appeal to the Commissioner of HPD (hereinafter
"Commissioner") or his or her designee. Such appeal shall include proof of service of a
copy of such appeal upon the housing company. The appeal shall briefly set forth the
reasons why the family member believes he or she is entitled to occupy the apartment and
any errors or erroneous findings he or she believes are contained in the housing
company's determination. The Commissioner or his or her designee shall review the
housing company's determination and any additional information submitted by the
applicant and shall issue the final agency decision with regard to the applicants
application. The only review of this determination is pursuant to Article 78 of the Civil
Practice Law and Rules.
(iii) Pending the agency's determination, the applicant may continue in occupancy and
shall be required to pay for the use and occupancy of the apartment in an amount equal to
the monthly rental/carrying charge paid by the vacating tenant/cooperator.
(iv) In the event the agency determines that the applicant is ineligible to remain in
occupancy then such applicant shall vacate the apartment or the housing company may
seek to terminate the occupancy without any further approval by HPD.
(9) This subdivision shall not apply to staff housing where employment at the institution
is a primary requirement for residency. It shall also not apply to housing designated for
senior citizens or the disabled, unless such succeeding family member would have
qualified for an apartment as an original tenant.
(q) Payment of rent and deposit of security. (1) A rental housing company may require
all new tenants to deposit as security an amount equal to a maximum of two months' rent,
or such amount as may be approved by HPD at the time of signing the lease except
where federal law or regulations prohibit. Commercial or professional tenants may be
required to deposit as much rent as security as the housing company requires.
(2) Each rental housing company is required to open an interest bearing bank account
in accordance with 7-103 of the General Obligations Law.
(r) Unauthorized payments. No company, associate, director, officer, employee, agent
or other person shall solicit or receive; directly or indirectly; any commission; bonus,
gratuity, fee or any other payment not expressly authorized by HPD from any person
interested directly or indirectly, in the filing of an application or in obtaining a lease or
occupancy agreement.
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Violation, in whole or in part, of Penal Law, 180.55 by any agent, sub-agent, or
employee of the agent is a crime and may be grounds for the cancellation of a sales or
rental agreement or managing agents agreement by HPD.
1) Then %>
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Home > Section 3-03: Tenant Income Limitations, Surcharges and Applicability of Federal Section 8 Subsidy to TenanUCooperators in
Residence.

Title 28: Department of Housinq Preservation and Development ~,> > Chapter 3: Cityaided Limited Profit Housing Companies n~
(a) Income limitations. (1) The dwellings in a rental development shall be available for
persons or families whose probable aggregate annual income at the time of admission
and during the period of occupancy does not exceed the greater of (i) the median income
for such persons or families for the New York City metropolitan statistical area or (ii) seven
times the annual rental, including the value or cost of heat, light, water and cooking fuel,
except that in the case of families with three or more dependents, such ratio shall not
exceed eight times the annual rental.
(2) "Probable aggregate annual income" shall mean the total income of the chief wage
earner as reported in the New York State income tax return, plus the total income, in
excess of $15,000 or such amount as determined by State law, of each other member of
the household, less such personal exemptions and deductions for medical expenses as
are actually taken by each tax paying occupant on the New York State tax return.
However, the income of a household member, under 21 years of age, who is a full time
student shall not be included in the computation of such annual income.
(3) Subject to the conditions contained in paragraphs (1) and (2) supra, in determining
the eligibility of tenanUcooperators in a mutual housing company development, there may
be added to the total annual carrying charges an amount equal to six per cent of the
original investment of a person or family in the equity obligations of such mutual housing
company and where same is not included in the carrying charges payable to the mutual
housing company, the value or cost to the tenant/cooperator of:
(i) heat, light, water and cooking fuel
(ii) the cost of repainting, upon the basis of $45 per room per year and
(iii) the cost of replacement of fixtures and appliances upon the basis of $10 per room
per year.
(4) Notwithstanding other applicable provisions, families with two or more dependents
whose probable aggregate annual income does not exceed one hundred twenty-five
percent of the limitations as to income as determined pursuant to paragraphs (1) and (2)
of this subdivision (a), shall also be eligible for admission to the dwelling of a project
provided that any family becoming eligible for admission by reason hereof shall pay, from
the time of admission, a rental surcharge as provided for in subdivision (b) of this section,
computed on the basis of the income limitations applicable to such family in the absence
of this provision.
(b) .Surcharges. In the event that the aggregate annual income of all occupants of a
dwelling unit shall exceed the maximum above set forth, the tenant or cooperator shall be
required to pay a surcharge based upon the following schedule:
Schedule of Surcharges
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Income
Percent of
Basic Rent
Constituting
Surcharge
Up to 100 percent of maximum income limit
None
From 100 percent and up to 105 percent of maximum

income limit
None

income limit

income limit
10

income limit
15

income limit
20

income limit
25

income limit
30

income limit
35

income limit
40

income limit
45
From 150 percent and over
50
(c) Surcharge procedures. (1) Surcharges shall be payable monthly on a current basis
by tenanUcooperators in occupancy based upon income realized during the prior calendar
_year and_ . such_income,shall. be reported on_income_affidavits....to be ,furnished.. by
tenanUcooperators.
(2) On February 15th of each year during occupancy, or at such other date as
determined by HPD, the housing company shall distribute to each tenanUcooperator an
affidavit to be executed by all occupants residing in the apartment as to the income
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realized by each of such occupants during the preceding calendar year. The information
requested shall be set forth in a form of affidavit prescribed by HPD.
(3) The tenant/cooperator shall return to the housing company or its managing agent
the income affidavit supplied by the housing company duly executed and notarized by
April 30th of each year.
(4) The surcharges shall be computed by the housing company or its managing agent
in su~cient time so that surcharge billings shall commence no later than July 1st of each
year. The income affidavits will be subject to verification at any time, pursuant to such
method as may be determined by HPD, including, but not limited to, spot check audits of
certified income tax forms and verification by the New York State Department of Taxation
and Finance as set forth in 60(9) of the Private Housing Finance Law.
TenanUcooperators and other occupants selected for audit shall be required to provide a
certified copy of the IRS or New York State income tax return for the audited year(s). The
tenant/cooperators shall assume the cost of obtaining said certified copies. If HPD
establishes a verification system with the New York State Department of Taxation and
Finance, those tenanUcooperators found to have reporting discrepancies shall be
obligated to furnish
certified copies of IRS or New York State income tax returns. The housing company may,
upon HPD's approval, implement a policy imposing a penalty fee when additional income
is found that would have resulted in an additional surcharge.
(5) A housing company or its designee is required to collect all surcharges computed
on the basis of income received by all individuals in occupancy.
(d) General requirements. (1) in the event that atenant/cooperator fails to return a fully
completed affidavit by April 30th of each year, the income of such tenant/cooperator will
be presumed to have exceeded the maximum allowable income by 150 percent or more.
Written notice will be given informing such tenanUcooperator thst the maximum surcharge
will be imposed effective July 1st. In the event completed income affidavits are submitted
after April 30th but prior to June 30th, the maximum surcharge will not be imposed.
However anon-refundable administrative charge, payable to the housing company, will be
applied. This charge cannot exceed $50.00. The housing company may remit half of any
such charge collected to the managing agent to compensate for the additional
administrative work.
In the event fully completed income affidavits are submitted after June 30th, a
correction to the maximum surcharge billing will be made effective the first day of the
month following the submission of such income affidavit. However, anon-refundable
administrative charge, payable to the housing company, will be applied. This charge
cannot exceed $150.00 for each month after June 30th in which the tenant/cooperator has
not submitted a fully completed income affidavit. This charge must be made payable to the
housing company. The housing company may remit half of any such charge collected to
the managing agent, in accordance with the terms of the applicable contract, to
compensate for the additional administrative work. In extenuating circumstances, HPD
may permit reimbursement of excess surcharge to the tenanUcooperator.
For purposes of this paragraph, an income affidavit in which the tenanUcooperator's
household income is not disclosed is not a fully completed income affidavit:
(2) Reserved.
(3) Whenever changes occur in rentals or carrying charges or any component thereof
used in the computation of surcharges, surcharges shall be recalculated by the housing
company or its managing agent.
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(4) A housing company cannot bring an eviction proceeding against any

tenantJcooperator who fails or refuses to pay surcharges without the issuance of a
certificate of eviction by HPD following an administrative hearing by an HPD designated
hearing officer in accordance with 3-18 of this chapter.
(5) Housing companies or their managing agents shall submit a copy of the surcharge
information tabulation sheets, and all changes thereto, together with copies of the income
affidavits for HPD review and evaluation. Surcharge records shall be kept available by the
housing company or its managing agent for inspection by HPD.
(6) Tenant/cooperators and other occupants shall be required by HPD to furnish
certified copies of their IRS and New York State income tax returns. The cost for the
certified report is to be borne by the tenant/cooperator.
(e) Reserved.
(fl Interim changes in income. (1) Where a tenant/cooperator anticipates along-term
reduction in income, resulting from death of a wage earner, retirement, or other such
circumstances, said tenanUcooperator must submit documentation of such interim change
in income to the managing agent. The managing agent shall verify the documentation
submitted, and if a change in income is so determined, shall remove the surcharge and
inform HPD of such action. HPD reserves the right to disapprove the action of the housing
company.
(2) Where a tenanUcooperator anticipates a temporary reduction in income, such as
job loss, temporary illness, or other such circumstances, said tenanUcooperator must
submit documentation of such temporary reduction in income to the managing agent. The
managing agent shall verify the documentation submitted, and if the interim change in
income is so determined, shall reduce, eliminate or defer collection of surcharges for a
reasonable period of time or shall arrange for an extended payment plan.
(3) The managing agent must maintain supporting documentation for all agreements
which shall be available for review by HPD. Any tenant/cooperator shall have the right to
appeal any determination under this subdivision (~ to HPD.
(g) Applicability of federal 8 subsidy to tenant/cooperators in residence. Pursuant to
31, subdivision 10 of the Private Housing Finance Law, a housing company shall accept
federal reimbursement under 8 of the Housing and Community Development Act of
1974, as amended, in lieu of such amount of rent/carrying charge payment for a person
qualifying under such act. A housing company shall not reject an applicant for an
apartment solely on the basis that all or part of the renUcarrying charges shall be paid
under 8 of the Housing and Community Development Act of 1974, as amended.
1) Then %>
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Section 3-04: I-IoLising Company Funds and Bonds.
Page 1 of 1

Home > Section 3-04: Housing Company Funds and Bonds.

Title 28: Department of Housing Preservation and Development ~,> > Chapter 3: Cityaided Limited Profit Housing Companies ~,~
(a) Bank accounts. All funds of the housing company shall be deposited in banks or
savings and loan associations maintaining an office in the State of New York in accounts
which are insured by the Federal Deposit Insurance Corporation or Federal Savings and
Loan Insurance Corporation. All bank accounts shall be maintained in the name of the
housing company and in a manner and form prescribed by HPD.
(b) Trust funds. All funds received by housing companies shall be held by such
companies as trust funds to be applied and used for the purpose of carrying out their
obligations under the law.
(c) Fidelity bonds general. Each housing company shall obtain and keep in full force
and effect a fidelity bond or bonds covering its signatory officers and such other persons
as are authorized to receive or disburse monies on behalf of the company. These bonds
shall be in such amounts as HPD may require, shall be drawn in form and substance
satisfactory to it and shall have as surety thereunder such company or companies
authorized to do business within the State of New York as are approved by HPD.
(d) Fidelity bonds for rental, sales and managing agent. All rentals, sales and managing
agents shall be required to deliver to the housing company and to HPD before their
employment shall become effective, a fidelity bond covering all officers and employees
handling funds of the housing company. The amount, form and substance of such bond
shall be subject to approval by both the housing company and HPD.
Source URL: http://rules.citvofnewvork.us/content/section-3-04-housing-company-funds-and-bonds
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Section 3-05: Rent Collection.
Page 1 of 1

Home > Section 3-05: Rent Collection.

Title 28: Department of Housing Preservation and Development n> > Chapter 3: Cityaided Limited Profit Housing Companies ~,~
(a) Rent collection. (1) Rent/carrying charges of te~anUcooperators is payable on the
first day of each month.
(2) It is the responsibility of the managing agent to collect renUcarrying charges and
take the necessary actions to collect past due renUcarrying charges.
(3) A charge for late payment of renUcarrying charges may be implemented by each
housing company. In order to implement a late charge, a written request must be
submitted to HPD setting forth the dollar amount of the proposed charge and the date of
the month it is to be billed. In the case of a mutual housing company, a Board of Directors
Resolution certified and acknowledged by the Secretary of the Corporation setting forth
the adoption of the late charge by the Corporation shall be submitted to HPD. HPD shall
respond in writing. Late charges shall be considered additional rent.
(b) Write-offs of uncollectible accounts.(I) Where collection efforts on the part of the
housing company, managing agent and counsel have not been successful, the housing
company may turn over uncollected accounts to a collection agency licensed by the New
York City Department of Consumer Affairs.
(2) Where all efforts as outlined above prove to be unsuccessful and an account
appears to be uncollectibie, write-offs should be handled as follows:
(i) Accounts receivable not in excess of three months' rent may be written off at
discretion of the housing company.
(ii) Accounts receivable equal to or in excess of three months' rent may be written off
only after approval by HPD. Requests for such approval must be supported by a detailed
description of collection efforts and such other material as may be required by HPD.
(iii) Except for cases of fraud and misrepresentation, counsel to the housing company
may be permitted to compromise and settle all accounts of vacated tenants turned over to
him or her regardless of the amount involved when such compromise and settlement are
of an urgent nature and are approved by the housing company. HPD must be advised of
such settlements in cases where indebtedness equaled or exceeded three months' rent.
Source URL: http://rules.citvofnewvork.us/contenUsection-3-05-rent-collection
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Section 3-06: Resale of Cooperative Shares.
Page 1 of 3
Published on NYC Rules (http://rules.cityofnewVork.us)

Home > Section 3-06: Resale of Cooperative Shares.

(a) Procedures. (1) A shareholder desiring to sell his or her shares in a mutual housing
company shall notify the housing company in writing no later than 90 days in advance of
his or her intention to sell his or her shares to the housing company or its designee,
pursuant to the provisions of the housing company by-laws and occupancy agreement.
(2) The shareholder shall transfer his or her shares to the housing company and shall
thereafter surrender possession of the apartment at the agreed upon time pursuant to
arrangements made with the housing company. After the shareholder has surrendered
possession of the apartment, the housing company will inspect the apartment to
determine necessary repairs. Any surcharge or any other fees and charges owing to the
housing company shall be deducted from the equity due the cooperator.
(3) The housing company shall enter the transfer of shares on its books.
(4) The shareholder shall be responsible for carrying charges and submetered
electrical charges for up to 90 days after surrendering possession of the apartment or until
the housing company transfers the shares to the new owner, whichever occurs earlier.
(5) (i) If a tenant/cooperator seeks to withdraw his or her offer of sale of shares, and no
commitment has been made to a purchaser, the housing company at its option, may
permit the tenant/cooperator to withdraw his or her offer, and may charge the
tenanUcooperator areasonable fee for this service.
(ii) If, within an 18 month period, shares for the same apartment are re-offered for sale
after a previous withdrawal pursuant to subparagraph (i) of this paragraph, the
tenanUcooperator must post security for administrative costs in the amount of two months'
carrying charges. If the shares for the apartment are sold, the security shall be refunded. If
the shares for the apartment are withdrawn again, the security shall be forfeited.
(6) The occupancy agreement for each mutual housing company shall set forth the
obligations of each shareholder with respect to the condition of the unit at the time that
such shareholder vacates the unit.
(7) In the case of National Housing Act of 1937, as amended, 223(fl refinanced
mutual housing companies, where the appliances were included as security for the
insured mortgage, the outgoing shareholder shall be required to leave behind the
appliances which were in place at the time of refinancing or to replace them with
appliances of equal size and amenities. In the case of non-refinanced mutual housing
companies, a board of directors may adopt a uniform policy whereby either the incoming
or outgoing cooperator shall be responsible for providing a stove and refrigerator for his or
her apartment.
A board may adopt a policy which apportions the cost of appliances between the
incoming and outgoing shareholders as follows: As appliances require replacement, the
cooperator in residence would be required to purchase the new appliance(s). A lifeexpectancy schedule would be established for each type of appliance and the appliance
would be depreciated over that pre-determined time period. If the cooperator in residence
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Page 2 of 3
vacated the apartment any time during the depreciation period, he or she would be
reimbursed for the remainder of the period by the incoming cooperator. If the depreciation
period were over when the cooperator vacated, the incoming cooperator would be
obligated to purchase new appliances and the process would commence again. The
depreciated appliances would become the property of the housing company. Any policy
adopted must be applied uniformly to all apartments.
(8) The mutual housing company shall follow the chronological order of its waiting list in
the sale of shares. In the event a mutual housing company has substantially depleted its
waiting list, the mutual housing company shall seek potential applicants. A mutual housing
company and its managing agent shall only open a closed waiting list in accordance with
the requirements of 3-02 of these rules.
(b) Resale price of shares.(1) The resale price of shares in a mutual housing company
shall be fixed by the mutual housing company, subject to the approval of HPD and shall
be equal to
(i) the consideration the selling tenanUcooperator paid for such shares and
(ii) any capital assessments and voluntary capital contributions approved by HPD and
paid by the selling tenanUcooperator to the mutual housing company, to the extent not
already included in the consideration paid for such shares, and,
(iii) if established by the mutual housing company, a proportionate share of the actual
aggregate amortization paid on all existing and prior mortgages on the project in reduction
of total outstanding principal indebtedness during such period as shall be fixed by the
board of directors of the mutual housing company, to the extent not already included in the
consideration paid for such shares, and
(iv) reasonable non-refundable administrative charges, not to exceed $150. Said
administrative charge is to be retained by the mutual housing company.
(2) The aggregate amount to be paid to the selling tenanUcooperator with respect to
the sale of the selling tenanUcooperator's shares shall be fixed by the board of directors of
the mutual housing company, subject to the approval of HPD, and shall be equal to
(i) the consideration the selling tenant/cooperator paid for such shares,
(ii) any capital assessments and voluntary capital contributions approved by HPD and
paid by the selling tenanUcooperator to the mutual housing company, to the extent not
already included in the consideration paid for such shares, and
(iii) a proportionate share of the actual aggregate amortization paid by the selling
tenant/cooperator on all existing and prior mortgages on the project in reduction of total
outstanding principal indebtedness during such period as shall be fixed by the board of
directors pursuant to subparagraph (iii) of paragraph (1) of this subdivision (b), to the
extent not already included in the consideration paid for such shares. To the extent that a
selling tenant/cooperator may be entitled to an amount less than the resale price of his or
her shares, the difference shall be retained by the mutual housing company.
(3) The Board of Directors may, subject to the approval of HPD, establish a general
policy pursuant to which a selling tenanUcooperator who had occupied more than one
dwelling unit is paid an amount measured by his or her proportionate share of the actual
aggregate amortization paid during his or her period of occupancy on all existing or prior
mortgages on the project.
To the extent that a selling tenant/cooperator may be entitled to an amount greater than
the resale price of shares, the difference may be paid to the selling tenanUcooperator by
the mutual housing company.
(4) The "proportionate share of the actual aggregate amortization paid on all existing
and prior mortgages on the project' referred to in paragraph (1) of subdivision (b) of this
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section shall be in the same ratio to such actual aggregate amortization as the number of
shares held by the selling tenanUcooperator at the time of sale bears to the total number
of shares of issued and outstanding capital stock of the mutual housing company during
such period.
(5) Nothing contained in this section shall prohibit the continued use of any method of
calculating resale price adopted by a mutual housing company and approved by HPD
prior to July 26, 1983.
(6) Participation in the full amortization provisions of this section is voluntary and not
mandatory.
(7) A mutual housing company electing to amend its by-laws pursuant to this
subdivision (b) shall submit to HPD for its approval, a Board of Directors Resolution
certified and acknowledged by the Secretary of the Corporation setting forth the adoption
of this provision and a fully executed copy of a by-law amendment certified by the
Secretary of the Corporation.
(c) Joint ownership of cooperative shares. A mutual housing company shall, upon
request of the shareholder, permit members of his or her immediate family in occupancy
to become co-owners of shares and co-signatories on the occupancy agreement provided
that the mutual housing company receives evidence satisfactory to it that: Such individual
has been included on the two most recent income affidavits filed by the shareholder; has
been a bona fide resident of the apartment for at least two years during which time the
apartment has been his or her primary residence; and that such individual and the
shareholder intend to continue in good faith to remain in joint occupancy. A mutual
housing company Board of Directors and its managing agent shall not unreasonably
withhold permission to add a co-owner or co-signatory as set forth above. The financial
status of the proposed party shall not be a factor as long as the prime tenanUcooperator
meets the
minimum eligibility requirements at the time of request. A mutual housing company may
limit the number of persons permitted to be added to the stock certificate. The same
criteria shall be utilized for all residents. For purposes of this section, the definition of
family member contained in 3-02(p) of these rules shall apply. Co-ownership of shares
does not guarantee the right to succession to an apartment in a mutual housing company
development. Successor cooperators must qualify under 3-02(p) of these rules.
(d) Bequeathing of apartments. In no event may the right of occupancy in a MitchellLama mutual housing company development be bequeathed to another. Upon the death
of the te~anUcooperator, the shares must be returned to the mutual housing company
which will arrange for a sale pursuant to subdivision (a) of this section. Notwithstanding
the foregoing, eligible members of the tenant/cooperator's immediate family in occupancy
may acquire such shares if they meet the requirements of 3-02(p) of these rules.
Source URL: http://rules.citvofnewvork.us/content/section-3-06-resale-cooperative-shares
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Section 3-07: Management and Operations.
Pale 1 of 5

Home > Section 3-07: Management and Operations.

Title 28: Department of Housing Preservation and Development ~,> > Chapter 3: Cites
aided Limited Profit Housing Companies ~,~
(a) Special services. A housing company may furnish tenanUcooperators with special
services not provided for in the lease or occupancy agreement such as bus, laundry,
television antenna or other services upon such terms as HPD shall approve in writing.
These services and all facilities used in connection therewith, shall be made available to
alI tenant/cooperators on equal terms. Discontinuance of special services at the request of
a tenanUcooperator shall not entitle the tenanUcooperator to a reduction in rent or carrying
charges unless HPD shall otherwise direct.
(b) Services, repairs, replacements and improvements. (1) Each housing company
shall maintain its structures, grounds, elevators, boilers and other equipment, either by
contract or by qualified employees in such a manner as to preserve the property, to
protect the health and safety of the residents and employees, and to provide economical
operation of the development.
(1-a) Periodically, HPD will require each housing company to submit a physical
condition report prepared by an independent qualified consultant acceptable to HPD. The
report will determine the physical condition of the property and all appurtenant equipment.
The report must specify all items and equipment that are in need of repair or replacement
or which have exceeded their useful lives or are projected to need repair or replacement
within five years. The report must also include a plan to address its findings, including an
explanation of how any necessary work will be financed.
(2) Contracts for building services, repairs, replacements, redecorating or
improvements and supplies shall be let on the basis of lowest cost compatible with quality
of performance, material and workmanship, on the basis of no less than three competitive
bids, according to the following schedule:
Contracts over $100,000 shall be submitted for HPD written approval. The housing
company's submission shall include the three bids plus a contract executed by the
successful bidder as well as the other documents as set forth below.
Notwithstanding the foregoing, HPD reserves the right to require any individual housing
company to submit for approval any or all contracts over $5,000.
In the case of a mutual housing company, the submission shall be accompanied by
(i) a certified copy of resolution of the housing company's Board of Directors
acknowledged by the Secretary of the Corporation, approving the contract, bearing the
housing company's corporate seal and
(ii) the housing company's attorney's certification that the proposed contract is in
compliance with the rules of HPD.
in the case of a rental development, the president or managing general partner of the
housing company or his or her duly authorized designee must sign the contract.
The following language shall be included in ail contracts for building services, repairs,
replacements, redecorating and improvements: "Material, equipment and workmanship
shall be subject to the inspection and approval of HPD or its duly authorized agent at the
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Section 3-07: Management and Operltions.
Page 2 of 5
discretion of HPD during the progress of the work and before final payment is made on the
contract."
Every contract subject to HPD approval shall contain the following language: "This
agreement is subject to written approval by HPD. No work shall commence until this
agreement is approved by HPD."
(3) The housing company or its managing agent shall require that all firms performing
work on the housing company's behalf, supply evidence in the form of a certificate of
insurance for workers' compensation and commercial general liability, naming the housing
company and HPD as additional insured parties. For contracts subject to HPD approval,
such certificates must be submitted to HPD for its written approval before any such
contract is executed by the housing company.
The liability limits for workers' compensation shall be statutory, and the commercial
general liability insurance shall be in standard comprehensive general liability form,
naming the housing company and HPD as additional insureds, against all claims for bodily
injury, death or property damage in an amount not less than $1,000,000 per occurrence,
$2,000,000 annual aggregate for bodily injury and property damages.
(4) On all contracts over $100,000, the successful bidder shall, not later than the time
of its delivery of the executed contract, deliver to the housing company and HPD an
executed Performance Bond for 100 percent of the accepted bid as surety for the faithful
performance of the contract and an executed Payment Bond for 100 percent of the
accepted bid as surety for the payment of all persons performing labor or furnishing
materials in connection therewith. Alternatively, the contractor may submit an
unconditional, irrevocable letter of credit from a New York Clearing House bank equal to at
least 10 percent(10%) of the dollar amount of the contract which shall provide that the full
amount may be drawn down by the housing company upon delivery of a letter certifying
default of the contractor. Request for waiver of a bond or letter of credit shall be submitted
in writing to HPD by the housing company.
(5) The following language shall be included in all contracts that are subject to HPD
approval for building services, repairs, replacements, redecorating and improvements:
"Contractor shall not assign any monies due or to become due hereunder without the
written consent of the Owner and HPD, nor shall Contractor subcontract or assign any of
the work without prior written approval by the Owner and HPD of such sub-contractor or
assignee." In addition, such contracts shall contain the following language: "This
agreement is subject to written approval by HPD."
(6) In the case of emergencies, where immediate employment of a contractor is
deemed necessary by the housing company to prevent damage to property or prevent
injury to persons, submission to HPD of the data required by paragraph (2) above may be
made after execution of a contract or performance of the work, provided that such
submission is made promptly following the date on which such emergency arose.
However, if the emergency occurs during working hours, notification of emergency should
be made by telephone to HPD and verbal approval obtained prior to commencement of
repairs.
(7) All contracts for building services or maintenance of buildings equipment on an
annual- or-time-basis that-require HPD- approval pursuant to- paragraph two of this
subdivision shall be submitted to HPD for written approval before execution by the
housing company, and prior to expiration of the previous contract, if any. Where such a
contract does not provide for automatic renewal, a new contract must be submitted for
approval to HPD at least thirty (30) days prior to expiration of the existing contract. All
such contracts for building services or maintenance of buildings equipment shall provide
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Section 3-07: Management anti Operations.
Paoe 3 of5
that they are subject to termination without cause upon thirty (30) days written notice by
the housing company or upon ten (10) days written notice by HPD, and immediately upon
notification by the housing company or HPD that the contractor has materially breached
his contract. After termination, no amounts shall be owed except for work actually
completed.
(8) In the event that any director, officer, shareholder, employee or agent of any
housing company shall be directly or indirectly connected with any person, firm or
corporation which may submit any bid, or to whom any contract is proposed or awarded,
pursuant to the provisions of paragraph (2) or (5) hereof, a statement setting forth the
nature of such connection shall be included in the submission to HPD and shall be made a
part of the minutes of the meeting wherein the contract was approved.
(c) Contracts and retainers. (1) All contracts and retainer agreements with attorneys
and accountants shall be subject to termination without cause by HPD or the housing
company upon thirty (30) days written notice and immediately by written notice by the
housing company or HPD if there has been a material breach of contract. After
termination, no amounts shall be owed except for work actually completed. Managing
agent contracts are subject to 3-16 of these rules.
(2) An accountant retained by a housing company shall be an independent C.P.A.
licensed to practice under the laws of the State of New York.
(3) No company, association, director, officer, employee, agent or other person shall
solicit or receive, directly or indirectly any commission, bonus, gratuity, fee or any other
payment not expressly authorized by HPD from any individual, firm or corporation which
may submit any bid, or to whom any contract is proposed to be awarded.
(4) Violation of this subdivision (c) by any company, association, director, officer,
employee, agent or other person shall be cause for discharge and any other appropriate
action; and a provision to such effect shall be incorporated in all employment agreements
entered into by the company.
(d) Cancellation by HPD. Any contract, agreement or retainer, entered into by the
housing company or its managing agent in violation of the provisions of this section shall
be subject to immediate cancellation by HPD.
(e) Employees, wages and living quarters. (1) The number, types, qualifications and
rate of pay of the employees required for the proper maintenance and operation of the
housing company's properties shall be subject to review by HPD and the housing
company shall submit staffing plans to HPD for its review and approval, if required by
HPD.
(2) The rental of an apartment in a development by an employee of the housing
company shall be subject to the same rules and procedures as are applicable to all other
tenants, except that income limitations, occupancy standards, and surcharges shall not
apply when the employee is living at the development for the furtherance of the housing
company's interests. However, the number of apartments, if any, which may be set aside
for such employees shall be subject to the approval of HPD. The agreement shall provide
for the termination of occupancy by the employee when his or her services are
discontinued. Such resident employees shall not be shareholders, if such company is a
mutual housing company.
(fl Certification of superintendents and boiler technicians. The housing company or
managing agent shall require the building superintendent and one boiler room technician
from each housing company to obtain a certificate of completion of a course offered by an
accredited institution on the maintenance of a vacuum steam system, where applicable.
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Section 3-07: Management aild Operations.
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Such accreditation must be furnished to the Division of Housing Supervision of HPD if

requested by HPD.
(g) Examination of operations. The administration and operation of a development shall
be subject to examination at the discretion of HPD. The housing company shall make all
data, records, information and areas of the physical property available for such
examination.
(1) Physical inspection. All developments are subject to physical inspection. HPD may
retain a third party to make inspections or may rely on inspections made by others. The
inspector shall carry out his or her inspection together with a representative of the housing
company. In the case of a rental development, a representative of the duly constituted
Tenants Association may join in the inspection.
The Tenants Association may make a list of complaints available to HPD in advance of
the inspection date; the inspector shall notify the representative in advance of the date
and time of the inspection. All inspections shall be made in the course of normal business
hours.
HPD or its designee shall issue a written inspection report which shall be sent to the
owner or President of the Board of Directors, the managing agent and, in the case of a
rental development, the Tenants Association. The managing agent, with the knowledge
and approval of the housing company, shall cause all emergency repairs to be made
immediately and will comply expeditiously with the requirements of the inspection report.
The managing agent will advise HPD in writing of actions taken to comply with
recommendations in the inspection report.
To facilitate the physical inspection of a development, the following records shall be
maintained:
(i) Apartment painting, maintenance and repair files.
(ii) A log of repairs or improvements to plant, structures and grounds.
(iii) A log of service interruptions, such as heat, hot water, elevator and utilities.
(iv)A log of contracts, including, but not limited to, name of contractor, fee and
expiration date.
(v) A log of general supplies, tools and equipment.
(vi) An oil consumption log setting forth delivery date, gallonage and price per gallon; or
a steam or gas consumption log, where applicable.
(vii) Electricity usage log (monthly kwh consumed).
(2) Fiscal examination of operations. HPD shall at its discretion conduct audits and
reviews of housing company financial operations. The housing company shall cooperate
in making all books and records available for such audit and review. To facilitate the
examination of data, the following records shall be maintained and (where indicated) sent
to HPD:
(i) Permanent individual tenanUcooperator flies which shall include the initial application
forms, credit checks, home visit reports where applicable, and other supporting
documentation. in addition, the file should contain all income affidavits, tenant/cooperator
leases and occupancy agreements and any special forms, riders, documents and
information which may pertain to the eligibility of said tenanUcooperator for his or her
apartment and any and alh subsidies which may be applicable.
(ii) A quarterly vacancy report to be sent to HPD within thirty days of its preparation.
(iii) Current tenanUcooperator rent roll to be sent to HPD every twelve months.
(iv) A monthly operating statement showing rent/carrying charges and other receipts,
disbursements, aged accounts payable and aged renUcarrying charge arrears, including
the name of occupant in arrears, his or her apartment number and dollar amount of
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arrears to be sent to HPD no later than thirty days after the end of the month for which
such monthly operating statement was prepared.
(v) An annual audited financial statement which shall be prepared for and submitted to
HPD no later than one hundred twenty (120) days from the end of the audited fiscal
period.
(3) In the event the income and reserves of the housing company shall be insufficient,
as determined by HPD, to complete ail required repairs, HPD, in conjunction with the
housing company, shall establish priorities.
Source URL: http://rules.cityofnewVork.us/contenUsection-3-07-management-and-operations
Links:
(1] http://rules.cityofnewyork.us/codified-rules?agency=HPD
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Section 3-08: Reserves.
Page I oP2

Home > Section 3-08: Reserves.

(a) Reserves. Each housing company shall be required to maintain a capital repair and
replacement reserve account.
(1) Deposits.
(i) Annually, each housing company must deposit into the capital repair and
replacement reserve account three hundred dollars ($300) per dwelling unit in equal
monthly installments.
(ii) If the capital repair and replacement reserve account baia~ce does not equal or
exceed the greater of one thousand dollars ($1000) per dwelling unit or twenty-five
percent (25%) of the housing company's rent roll, such housing company must deposit
three percent(3%) of its rent roll on a monthly basis to the capital repair and replacement
reserve account until its balance is raised to equal or exceed the greater of one thousand
dollars ($1000) per dwelling unit or twenty-five percent (25/o) of the housing company's
rent roll.
(2) Disbursements. No disbursements from the capital repair and replacement reserve
account can be made without prior written authorization by HPD.
(b) Bank resolutions. The resolution filed with the bank shall contain, in addition to the
clauses required by the bank, the following clauses: Further resolved, that withdrawals
from such reserve account be accompanied by "Authorization for Expenditure of Funds"
signed by a designated HPD official of, and that duplicate copies of monthly bank
statements shall be forwarded to HPD's Division of Housing Supervision, upon HPD's
request; that when an investment in securities is contemplated, withdrawal shall be made
upon presentation of "Authorization for Expenditure of Funds;" that the bank shall make
the investment, shall hold the securities in safekeeping and shall deposit to such account
the proceeds realized on either liquidation or redemption.
Further resolved, that this resolution shall remain in full force and effect unless and until
revoked with HPD's written consent. A certified copy of the housing company's resolution
opening the bank account and a photocopy of the housing company's signature card flied
with the bank shall be submitted to HPD's Division of Housing Supervision.
(c) Investments. The capital repair and replacement reserve account shall be held in
Federally insured interest-bearing bank accounts and/or interest bearing Federal
obligations in a form approved in writing by HPD.
(1) If interest-bearing bank accounts are utilized, passbooks and bank records shall be
annotated as follows: Withdrawals from this account are limited to checks payable to
Housing. Company), Capital Repair and Replacement Reserve Account,(Name of bank in
which reserve account is maintained).
(2) If Federal obligations are purchased, a custodial agreement for the bank in which
the "Capital Repair and Replacement Reserve Account' must be maintained. This
agreement shall require that all interest and proceeds from liquidation or redemption of
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Section 3-08: Reserves.
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securities be re-deposited to the "Capital Repair and Replacement Reserve Account." A
photocopy of the custodial agreement shall be submitted to HPD.

Source URL: http://rules.cityofnewvork.us/contenVsection-3-08-reserves
Links:
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Section 3-09: Insurance.
Page 1 of4

Home > Section 3-09: Insurance.

(a) General. The following is intended to serve as minimum requirements for housing
companies in arranging an insurance program to provide protection against the usual
hazards experienced during the course of operation. Since the same conditions may not
prevail in all developments, separate studies should be made as to the actual exposures
and hazards and the insurance coverage necessary to meet them.
It is incumbent upon all housing companies to see that proper insurance coverage is
maintained at all times and that coverages are modified or changed to meet changing
conditions. Copies of all insurance policies and renewals shall be transmitted promptly to
HPD. Furthermore, all insurance coverage that is maintained by housing companies must
be issued by an insurance company in good standing licensed to issue insurance in New
York State.
(b) Minimum required coverage.
(1) Upon opening a corporate or sales office.
(i) Public liability (Comprehensive General Liability Form) Minimum limits of $1,000,000
per occurrence, $2,000,000 annual aggregate for bodily injury and property damage.
(ii) Workers'compensation. As required by statute.
(iii) Disability benefits. As required by statute.
(iv) Blanket fidelity bond. Appropriate limits as determined by HPD.
(v) Hold up. Inside and outside. Money and securities. (Broad Form if possible where
safe is located on premises.)
(2) Upon acquisition of site.
(i) Liability coverage. To be endorsed to include site and any buildings thereon.
(ii) Fire insurance. Housing company should obtain this coverage on its buildings
and/or personal property.
(3) Upon commencement of construction of the limited-profit housing company
development. The following coverages are generally supplied by the General Contractor
pursuant to the terms of the construction contract. Contractors shall be required to submit
the required policies delineated in this section to HPD before the commencement of any
construction work and operations shall not be allowed to commence until coverage
required has been approved by HPD.
(i) Contractor's public and protective liability and property damage. Contractor shall
provide such coverage to protect him and his subcontractors against claims for property
damage and personal injury, including accidental death, in the sum of $1,000,000 per
occurrence;$2,000,000 annual aggregate bodily injury and. property damage.
(ii) Owner's protective liability and property damage. Contractor shall provide such
coverage to protect the housing company against claims for property damage and
personal injury including accidental death caused by the operation of the contractor or his
subcontractors during the performance of the work in the sum of $1,000,000 per
occurrence, $2,000,000 annual aggregate bodily injury and property damage.
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Section 3-09: Ins~ira~~ce.
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(iii) Workers'compensation. As required by statute.

(iv) Disability benefits. As required by statute.
(v) Fire and extended coverage insurance. Pursuant to the terms of the Construction
Contract. It is recommended that a builder's risk "Completed Value" form of policy be
used. Adequate coverage shall be maintained for any materials which are stored away for
the development site. It is recommended that the housing company rather than the
contractor obtain this coverage.
(vi) Boiler. Minimum of $1,000,000 pursuant to the terms of the Construction Contract.
It is recommended that the housing company rather than the contractor obtain this
coverage.
(vii) Payment and performance bond. Pursuant to the terms of the Construction
Contract.
(4) Upon occupancy of buildings. Policies carried during the initial or construction
periods of a housing development for which there is a continuing exposure thereafter may
remain in force and the policies adjusted in accordance with requirements during later
conditions.
(i) Comprehensive general liability. Minimum limits of $1,000,000 per occurrence,
$2,000,000 annual aggregate for bodily injury including accidental death and property
damage. This policy should include coverage for the maintenance or use of the premises
as well as for all elevators which are located in the development.
(ii) All Risk Property Policy. Policy should be written in an amount equal to at (east 90
percent of the insurable value of the development. The prior approval of HPD shall be
obtained for a deductible clause in excess of $5,000. Fire policies shall contain a provision
that the settlement of all fire losses shall be subject to the approval of HPD. Policies shall
be endorsed to cover the interest of The City of New York, as first mortgagee.
(iii) Rents. The rental income of the development should be written on a 100 percent
co-insurance basis.
(iv) Workers'compensation. As required by statute.
(v) Disability benefits. As required by statute.
(vi) Fidelity Bond. 3D Comprehensive form of policy is recommended for this coverage.
The amount of the coverage shall be two and one-half times the value of the monthly rent
roll plus any other fluid assets. However, in certain cases using the two and one-half times
factor may make the amount of coverage unrealistic and the cost prohibitive for the risk
involved. Therefore, HPD reserves the right to determine, on a case by case basis, what
amount is sufficient. A rider should include coverage for a managing agent. Furthermore,
for mutual housing companies, a rider can also be added to include the interest of all noncompensated officers, directors and committee members.
(vii) Boiler and machinery. HPD recommends a "Comprehensive" form of coverage be
used or a rider be added to the "Broad" form to cover "Miscellaneous Electrical
Equipment'. The amount of insurance to be carried shall be sufficient to cover the
maximum probable damage to the property of the development and property of others that
may arise out of any accident occurring through the operation of such equipment, but in
any event not less than $1,000,000. Policies shall be endorsed to cover the interest of the
City of New York, as first mortgagee.
(viii) Directors and officers. For mutual housing companies. Minimum limit of
$1,000,000.
(ix) Umbrella liability. The minimum requirement for under 150 units $1,000,000; 151 to
500 units $5,000,000; 501 to 1,000 units $10,000,000; over 1,001 units $15,000,000.
(x) Miscellaneous risks.
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Section 3-09:Insurance.
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(A) Automobiles. Any vehicle owned by the housing company shall be covered by
automobile liability insurance with minimum limits of $250,000/500,000 for bodily injury,
including accidental death, and at least $100,000 for property damage. For damage to the
vehicle itself, comprehensive fire and theft shall be obtained. For automobiles owned by
employees and officers of the housing company, used on behalf of the company, proper
liability coverage shall be obtained with limits of $250,000/500,000 for bodily injury
including accidental death and $100,000 for property damage.
(B) Sales and management companies. Where the housing company employs
independent sales or managing agents, these agents or their employees who are
responsible for the handling of housing company monies shall, without expense to the
company, be bonded by a Blanket Position Bond, in favor of the housing company and a
copy of such Blanket Position Bond shall be submitted to HPD.
(C) Contractors, concessionaires, and similar professionals. In the event that repair,
alterations, exterminating or any other work or services shall be performed by the housing
company, the housing company shall require that all firms performing such operations,
supply evidence that workers' compensation and public liability insurance are in force. The
limits for liability shall be at least $500,000 for bodily injury and property damage,
combined single limit. It may be that certain contractors and concessionaires, by the
nature of the liability factor for the work being done, and the cost of the contract, would
have a higher risk factor. In that event we reserve the right to require, on a case by case
basis, a higher amount for bodily injury. The housing company and HPD shall be named
as an Additional Insured.
(D) Commercial tenants and licensees. Must carry a minimum of $1,000,000 for bodily
injury and property damage, combined single limit. It may be that certain commercial
tenants and licensees, by the nature of their business, would have a higher bodily injury
risk factor. In that event we reserve the right to require, on a case by case basis, a higher
amount for bodily injury. The housing company and HPD shall be named as an Additional
Insured.
(E) Architects and engineers. Must furnish evidence of their liability coverage.
(F) For subparagraphs (x)(C) and (x)(D) above, the housing company and HPD shall
be named as an Additional Insured.
(G) Insurance coverage shall be reviewed prior to the anniversary date of each policy
with respect to the adequacy of coverage. HPD may direct a housing company to increase
the amount of its coverage to reflect current replacement value where appropriate.
(c) Notice of loss. (1) The housing company shall give immediate notice to HPD of the
occurrence of any damage to its property caused by fire or any other hazards, whether or
not covered under any of the above insurance coverages.
(2) If damage to housing company property is sustained at other than normal business
hours, the loss must be reported to HPD on the first regular business day following the
occurrence.
(3) Personal injury or fatality as a result of a fire or other than natural causes must be
reported to HPD immediately.
(4) in the event that a housing company decides to employ a Public Adjuster for the
purpose of negotiating a settlement. with. its.. insurance. company, the. housing. company
must request approval from HPD in writing. Approval by HPD must be confirmed in writing
to the housing company.
(5) Unless HPD exercises its rights under the mortgage to apply insurance proceeds to
the mortgage, all checks in payment of losses shall clear through HPD Insurance Unit.
HPD representatives will inspect to see that the damaged property has been restored to
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Section 3-09:Insurauce.
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satisfactory condition, after which time the checks shall be released to the housing
company.
(d) Cancellation.
All policies shall provide for a minimum of thirty (30) days notification to HPD in the
event of cancellation, amendment or alteration of a policy.
(e) Capital grant insurance requirements.
(1) The housing company shall cause to be placed and kept in force ail forms of
insurance needed to protect the company adequately or required by law, including but not
limited to workers' compensation insurance, disability insurance, public liability, boiler
insurance, and all risk property insurance. All of the various types of insurance coverage
required for the benefit of the housing company shall be placed with such companies, in
such amounts, and with such beneficial interest appearing therein as shall be acceptable
to the housing company and the New York State Division of Housing and Community
Renewal, and otherwise be in conformity with the requirements of the mortgage.
(2) The housing company shall provide or make provision for a managing agents bond
naming the New York State Housing Finance Agency as obligee with an amount and an
insurance company acceptable to the housing company, the New York State Housing
Finance Agency, the New York State Division of Housing and Community Renewal and
HPD.
Source URL: http://rules.citvofnewvork.us/contenUsection-3-09-insurance
Links:
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Section 3-10: Rent and Carrying Charge Increases.
Page 1 of 7

Home > Section 3-10: Rent and Carrying Charge Increases.

Title 28: Department of Housinq Preservation and Development ~,> > Chapter 3: Cites
aided Limited Profit Housing Companies ~,i
(a) Procedure for request of increase. (1) The housing company shall prepare the
requisite petition, application, or motion for an increase in the maximum rental or carrying
charges per room and submit same to HPD for approval as to form and authorization for
hearing procedures.
(2) In the event the housing company fails to submit said petition, application or motion
as set forth in paragraph (1) above, HPD may, upon its determination of the need for an
increase in rents or carrying charges, promulgate a petition preparatory to effectuating the
hearing, which petition need not be in the same form as delineated in 3-10(b).
(b) Public hearing requirement. (1) Before acting upon any application or motion for an
increase in the maximum rental/carrying charges per room to be charged
tenanUcooperators of dwellings where HPD is the supervising agency under the
provisions of the Private Housing Finance Law, a public hearing shall be held. Said
hearing shall be held upon not less than thirty (30) days notice to the tenant/cooperators.
Such notice shall have annexed thereto a copy of the application or motion for increase in
rental/carrying charges and shall set forth the facts upon which the application or motion is
based. A development assisted by a Federal Section 236 contract must also comply with
Federal rent/carrying charge increase requirements.
(2) No applications or motion for an increase in the maximum rental/carrying charges
per room shall be entertained or acted upon hereunder for a period of two years from the
date of any previous order of the supervising agency for the increase of maximum
rental/carrying charges affecting the same dwelling.
(3) In the event that a hearing having been scheduled is adjourned for any reason
whatsoever, then notice of such adjourned date shall be posted near the elevators, on
bulletin boards or in any other conspicuous places on the lobby floor; such notice shall
constitute compliance with these regulations.
(c) Contents of application. (1) An application for rental/carrying charge increases shall
be submitted to HPD, together with a copy of the notice proposed to be delivered to the
tenanUcooperators. (For the purpose of this subdivision (c) the term "rental" shall mean
and be interchangeable with the term "carrying charges" as used for a mutual company
and the term "tenant' shall mean and be interchangeable with the term "cooperator").
(2) The notice to be delivered to the tenants shall first be submitted to HPD for its
approval and shall contain:
(i) in bold print, at the top,
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TO ALL TENANTS OF(Name of Development)

NOTICE OF APPLICATION (Housing Company)
~i7~ZX~~~_\~I~C~I:l~_F9
(ii) In the body of the notice:
PLEASE TAKE NOTICE, that upon the annexed application

of(Housing Company)the Department of Housing
Preservation and Development of the City of New York will be
requested to approve an increase in the maximum average
monthly room rental in the housing development of(Housing
Company)from (present maximum)to (requested maximum);
and
PLEASE TAKE NOTICE FURTHER that a public hearing will

be held at the time and place designated by HPD in the
attached cover letter from HPD, and at that time evidence will
be introduced in support of said application by the
undersigned. Interested parties may appear in person to
comment or may provide written comments to HPD.
YOU MAY APPEAR IN PERSON OR BY ATTORNEY
(Place)
Date(Date of
Notice)
Date (Date of Notice) Housing Company
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(Attorneys)
(3) Applications for rent increases shall be verified and submitted in quadruplicate. They
shall contain:
(i) Name of housing company, location of development, date of organization and
number of rental rooms.
(ii) Dates of completion and of occupancy.
(iii) Status with respect to tax exemption.
(iv) Present average room rent.
(v) Present income from non-dwelling spaces.
(vi) Capitalization, authorized and actual.
(vii) Status of dividend and debenture interest payments accruing from date of initial
occupancy.
(viii) Assessed valuation. Land and land improvements.
(ix) Such other information and data as may be pertinent.
(x) Request for a specific rent increase.
(4) The application shall have annexed the following exhibits and schedules:
Exhibit 1. A three year projection of operations on a cash

flow basis as per a format available from HPD, complete with
applicable schedules. In addition to the three years an actual
base year should be used as a starting point reflecting the
information in the latest certified statement of financial
condition as prepared by a certified public accountant.
Exhibit ll. A calculation of the increase required on an
average per room per month rate in a format available from
HPD. This calculation will commence with beginning working
capital or deficit working capital as of the beginning of the
projection. Include total deficits projected for the length of the
projection and one month's working capital to be left at the
end of the period. This deficit then divided by the number of
months between expected day of increase and the end of
projections and that amount divided by the number of rental
rooms in the development will produce the required per room
per month dollar increase.
Exhibit lll. A three year projection of operations on a cash
flow basis after reflecting the increase calculated in Exhibit II
above. All applicable schedules will be provided as required
in Exhibit I.
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Exhibit /V. The most recent annual audited financial

statement for the housing company. It should be noted that
working capital or negative working capital resulting from
prior years' operations, as well as required reserves not
funded, must be considered in the calculation of required
increase in the petition. The format for these exhibits and
schedules is available from HPD. HPD may require further
information on any of the matters listed above or on any
other matters and may request an amended or superseding
application. Such additional information shall be verified and
filed in quadruplicate within the time stated by HPD.
(d) The hearing. (1) If the papers submitted to HPD are in form sufficient to warrant
consideration by such agency, the applicant shall be notified in writing. Such notification
shall include the date and place established by HPD for the public hearing on the
application. The hearing shall be held within sixty (60) days of the date of such notification.
(2) Thereafter, the applicant shall notify each tenant in writing by notice approved by
HPD of the pending application and the date and place set for the hearing. Such
notification shall be sent to the tenants by ordinary mail or distributed under each
apartment door and a copy shall be posted in a conspicuous public place on the lobby
floor of each building affected. Additional copies of the notice to tenants shall be kept by
the applicant for inspection by tenants requesting same. Satisfactory proof of notification
to tenants must be supplied to HPD not less than ten (10) days prior to the date set for
hearing.
(3) All books, records and financial data pertinent to the requested increase shall be
made available to representatives of the Tenants Association in a rental development.
(4) The hearing shall be presided over by such hearing officer as may be designated
by HPD for such purpose. The applicants and those opposing the application, in person or
by duly authorized representatives, shall each be given a reasonable opportunity to be
heard.
(5) A record of the proceedings shall be kept, which shall include, among other things,
the application, the notice to tenants, the written and documentary material received,
including comments received by HPD. A verbatim transcript of the hearing shall be made
and kept as a record of the public hearing. The cost of such transcript shall be borne by
the housing company.
(6) HPD shall make its decision with respect to the application, and if it is determined
that an increase shall be granted, the Commissioner shall issue an Order specifying the
amount of the increase and the dates) of implementation. Said Commissioner's Order
may be structured to provide for a single or multiple-stage increase.
(7} Prior to the issuance of the Commissioner's order; HPD shall make available the
results of a preliminary financial analysis of the application. in the case of a rental
development, such analysis shall be provided to both the owner and the Tenants
Association or their respective representatives or designees. If either party in the case of a
rental development requests a meeting to review the preliminary financial analysis, HPD's
Assistant Commissioner of Housing Supervision shall call a meeting with both parties
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present prior to making a recommendation to the Commissioner. In the case of a mutual

housing company, such analysis shall be provided to the President of the Board of
Directors or his or her designee. If the Board of Directors requests a meeting to review
such analysis, the Assistant Commissioner of Housing Supervision shall tali a meeting
prior to making a recommendation to the Commissioner.
(e) Implementation of rent or carrying charge increase. A rent increase shall become
effective on the first day of the month specified in the Commissioner's Order. The housing
company or managing agent shall notify the tenants of such increase by ordinary mail or
distribution under each apartment door at least fifteen (15) days in advance thereof or
thirty (30) days in advance in the case of a development assisted by a Federal 236
contract, and by posting a copy of the order granting said increase in a conspicuous public
place on the lobby floor of each building affected; if such notice is not given in sufficient
time then the rent increase shall become effective on the first day of the following month.
Proof of such notification shall also be furnished prior to the institution of any rent
increase.
(fl Failure to maintain essential services. No increase will be granted where in the
discretion of HPD the owner of a rental development is not substantially maintaining
essential services. Any tenant or his or her representative who wishes to raise this
objection must do so by filing a verified statement with HPD a minimum of ten (10) days
prior to the date set for the hearing, setting forth in separate allegations each claimed
instance of failure to substantially maintain essential services.
(g) Service fees and charges. A housing company may, with the prior written approval
of HPD, impose or increase fees for services including, but not limited to parking, airconditioning, master antenna, appliances and storage.
(h) Reimbursement of professional fees to Tenants Associations. (1) A Tenants
Association that is constituted pursuant to 3-17 of this chapter shall be eligible for
reimbursement of professional fees incurred when such Tenants Association retains an
accountant, architect or engineer to review a rent increase application which has been
submitted by a housing company to HPD and approved as to form by HPD. Only one
accountant and/or one architect or engineer may be retained by a Tenants Association
pursuant to this subdivision to review a particular rent increase application submitted by a
housing company pursuant to this section.
(2) On the date upon which a housing company submits a rent increase application to
HPD pursuant to paragraph one of subdivision (a) of this section, such housing company
shall notify the Tenants Association in writing that it has submitted such application and
that the Tenants Association may retain an accountant and/or an engineer or architect to
review the rent increase application upon approval as to form of such application by HPD.
(3) A Tenants Association may retain a professional or professionals to review a rent
increase application that has been approved as to form by HPD provided, however, that
such professional or professionals shall be retained within ten days after receipt of the
notice required pursuant to paragraph two of this subdivision. Said notice shall be deemed
to have been received on the business day immediately following the day of mailing. Such
Tenants Association shall provide a copy of the retainer agreement or agreements to the
housing company and to HPD prior to submission of the professional report or reports
pursuant to paragraph four of this subdivision.
(4) A Tenants Association which has retained a professional or professionals to review
a rent increase application that has been approved as to form by HPD shall submit a copy
of the report and the bill for services of such professional or professionals to the housing
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company and to HPD at least seven days prior to the scheduled date of the hearing on
such application.
(5) The total fees charged by a professional or professionals retained by a Tenants
Association pursuant to this subdivision shall be the fair and reasonable cost of the
services rendered by such professional or professionals, but shall not exceed in total the
amounts specified in the following schedule:
Size of Housing
Development
Maximum Total Fee

(s)
Under 500 units
$5,000
500 or more units
$6,000
(6) The housing company shall remit payment for services to a professional or
professionals who is retained by a Tenants Association pursuant to this subdivision within
a reasonable time after receipt of the bill for services, and not later than thirty days after
the hearing on the rent increase application.
(7) This subdivision shall not apply in the case of a rent increase application exclusively
subject to the approval of HUD.
1) Then %>
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Section 3-10: Rent and Carrying Chlrge Increases.
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Section 3-11: UCility Pass-Through, Submetering, Direct Metering.
Page 1 of3

Home> Section 3-tis Utility Pass-Through, Submetering, Direct Metering.

Title 28: Department of Housinq Preservation and Development ~,> > Chapter 3: Cites
aided Limited Profit Housinq Companies ~,~
(a) Utility pass-through.(1) Procedure for request of increase.
(i) A housing company which desires to implement an increase in that portion of the
renUcarrying charges attributable to utilities must make a request in writing to HPD for
permission to do so. Accompanying said request must be photocopies of utility bills for the
period of two years prior to the date of request in order to compare current costs with prior
costs.
(ii) The housing company must indicate the total annual amount of the increase
requested and, in addition, indicate the amount of the increase on a per room per month
basis.
(iii) In the case of a mutual housing company, the utility increase request must be
accompanied by a board of director's resolution approving same.
(iv) The housing company's accountant shall verify in writing that the supporting figures
submitted are correct.
(v) The housing company, upon submission of a request to HPD, shall post the request
in a conspicuous public place on the lobby floor of each building. in the case of a rental
development, a copy of the request with the back-up data shall be mailed to the President
of the Tenants Association for review and comment. Additional copies of the request with
back-up data shall be kept by the housing company for inspection by tenanUcooperators
requesting same.
(2) Procedure for processing increase. The above data will be analyzed by the Division
of Housing Supervision of HPD to determine the validity of the request for a utility passthrough. TenanUcooperators shall be allowed thirty (30) days from the date of notification
to the shareholders or Tenants Association to comment on the request. Upon
determination by HPD that apass-through of increased utility costs is warranted, based on
an increase in utility rates, an increase in utility consumption or any combination thereof,
HPD shall approve implementation of said utility pass-through and shall notify the housing
company in writing of such approval and of the duration of said utility pass-through. In a
rental development, a copy of the approval letter shall be sent to the President of the
Tenants Association. HPD may deny the request if the housing company has sufficient
resources to absorb the increases.
(3) Implementation by housing company.
(i) A utility pass-through shall become effective on the first day of the month following
the approval of same. The housing company shall notify the tenanUcooperators of such
utility pass-through at least fifteen (15J days in advance thereof by either ordinary mail-or
distribution under each apartment door, and by posting a copy of the approval letter in a
conspicuous public place on the lobby floor of each building affected; if such notice is not
given in sufficient time, then the pass-through shall become effective on the first day of the
next following month after such notice is given.
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Section 3-11: Utility Pass-Through, Submetering, Direct Metering.
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(ii) A utility pass-through may be requested at any time that an increase in rates or
usage occurs; however, no more than one (1) pass-through for the housing company will
be approved by HPD for implementation within any six (6) month period.
(b) Submetering of electricity. Wherever allowable as determined by the Pubiic Service
Commission, a housing company which is master metered for electricity may, pursuant to
HPD approval, install equipment for the submetering of electrical charges within dwelling
units and bill tenanUcooperators for their individual consumption, plus administrative costs
and amortization of equipment. A housing company seeking to convert to submetering
must comply with all requirements of the Public Service Commission with respect to such
conversion. RenUcarrying charges shall continue to reflect the cost of electricity for public
areas and usages.
(1) Submission of plans. The housing company shall submit to HPD for review and
approval plans and specifications for the installation of submetering equipment.
(2) Bidding requirements.
(i) All contracts for the sub-metering of electricity shall be bid in accordance with 3-07
of these rules.
(ii) In the event that any director, o~cer, stockholder, employee or agent of any
housing company shall be directly or indirectly connected with any person, firm, or
corporation which may submit any bid, or to whom any contract is proposed or awarded, a
statement setting forth the nature of such connection shall be included in the submission
to HPD. In the case of a mutual housing company, it shall be made a part of the minutes.
(3) Testing of su6metering equipment.
(i) The housing company shall be responsible for maintaining accurate meters. Periodic
inspections shall be conducted for this purpose.
(ii) If a tenanUcooperator requests an inspection of a meter at a time other than the
periodic inspection, the cost of said inspection will be borne by the housing company if the
meter is found to be defective, or by the tenanUcooperator if the accuracy of the meter is
found to be within prescribed parameters.
(4) Grievance procedures. Grievance procedures prepared by the housing company
relating to the submetering of electrical charges shall be submitted to HPD for review and
approval before such procedures are implemented by the housing company.
(c) Direct metering of electricity. (1) A housing company whose project obtains
electricity through a master meter may, pursuant to HPD approval, install equipment for
the purpose of having electricity directly metered to each tenanUcooperator.
(2) The housing company shall submit to HPD for review, plans and specifications for
installation of direct metering equipment. The bidding requirement set forth in 3-07 of
these rules shall be complied with.
(3) At the time of request by the housing company for permission to direct meter a
development, a copy of the request shall be sent by ordinary mail to all
tenanUcooperators.
(4) Prior to any determination being made by HPD regarding the conversion to direct
metering, HPD will solicit tenant/cooperator comments regarding said conversion.
(5) A determination will be made by HPD after analysis of existing utility charges as to
whether rentsor carrying chargesa4 the development'require adjustmenfi as a result of the
conversion.
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SecCion 3-11: Utility Pass-Through, SubmeYerig, Direct Metering.
Page 3 of 3
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Section 3-12: Energy Conservation. [Repealed]
Page 1 of I
Published on NYC Rules (http://ruies.cityofnewyork.us)

Home > Section 3-12: Energy Conservation.(Repealed)

3-12 Energy Conservation.[Repealed
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Section 3-13: Sanctions.
Page 1 of 1

Home > Section 3-13: Sanctions.

Title 28: Department of Housing Preservation and Development ~,> > Chapter 3: CitVaided Limited Profit Housing Companies ~,~
(a) Written notice and opportunity to appear. In the event of a violation by a housing
company which could result in removal of any or all of a Board of Directors pursuant to
32(6) of the Private Housing Finance Law, the Board of Directors shall be provided with
written notice and affected directors shall be given an opportunity to appear and be heard
before HPD with respect to any alleged violations.
(b) Representation by counsel. The respective parties may be represented by counsel
before HPD.
(c) Appointment of replacement board of directors. Pursuant to 32(6) of the Private
Housing Finance Law, HPD may replace any or all members of a Board of Directors by
appointing persons who HPD in its sole discretion deems advisable, including officers or
employees of HPD, as new directors to serve in the places of those removed. Directors so
appointed need not be shareholders or meet other qualifications which may be prescribed
by the housing company's Certificate of Incorporation or by-laws.
(d) Term of appointment. Directors appointed under this section shall serve only for a
period coexistent with the duration of the violation, or until HPD is assured against
commitment of violations of a similar nature, and shall serve in such capacity without
compensation.
(e) Debarment. Any person or entity may be debarred for a period not to exceed ten
years from contracting with or managing any housing companies supervised by HPD upon
a finding by a hearing officer designated by the Commissioner that there has been a
material violation of these rules or the provisions of Article II of the Private Housing
Finance Law by such person or entity or their agent or agents or upon a finding by a
hearing officer designated by the Commissioner that they have engaged in activity which
would constitute a violation of the Penal Law. Any person or entity so debarred may
appeal in writing to the Commissioner within ninety days of written notification of the
debarment.
(fl Control of admissions and transfers. Upon a finding that any housing company is in
violation of these rules with respect to admissions and transfers, HPD may take over
control of all internal and external waiting lists and have sole responsibility for the
selection and approval of admissions and transfers.
(g) Compulsory training. HPD may at its discretion require managing agent employees
and members of the board of directors to attend housing education courses at the
respective expense of the managing agent and the housing company.
Source URL: http://rules.citvofnewvork.us/contenUsection-3-13 sanctions
Links:
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Section 3-14: Corporate Action.
Page 1 of 9

Home > Section 3-14: Corporate Action.

Title 28: Department of Housinq Preservation and Development ~,> > Chapter 3: City_
aided Limited Profit Housing Companies n~
(a) Certificates of incorporation, by-laws, rules and regulations. Each housing company
shall file with HPD, for its approval, a certified and acknowledged copy of its proposed bylaws. Each housing company shall also file with HPD, for its approval, a certified and
acknowledged copy of all proposed amendments to its certificate of incorporation or bylaws. The housing company shall forward to HPD for its files two copies of the by-laws or
amendments to the certificate of incorporation or by-laws subsequent to HPD approval.
Failure to seek HPD approval or rejection by HPD of the by-laws or amendments to the
certificate of incorporation or by-laws will render the by-laws or such amendments null and
void. Certificates of incorporation, by-laws, rules and regulations established by a housing
company shall be in conformity with state laws and HPD rules. Housing company
certificates of incorporation, by-laws, rules and regulations to the contrary
shall be deemed null and void.
(b) Disposition of housing company property. No personal property, books, financial or
other records of a housing company shall be destroyed or disposed of without the written
consent of HPD.
(c) Salaries, fees or other compensation to officers or directors. No housing company
shall pay any salaries, fees or any other form of compensation to any officer or director for
services rendered in his or her capacity as corporate officer.
(d) Responsibilities of Board of Directors.
(1) Members of the Board of Directors of a housing company, whether rental or mutual
housing company, bear a high public responsibility, since they have effected to operate
under aCity-aided program to effectuate public policy by encouraging the building and
operating of housing developments for families of moderate income.
(2) Board members have a fiduciary responsibility to the shareholders of the
corporation. Each board member must ensure that buildings, grounds and other assets
are kept up to high standards so that their value is not impaired and that the annual
operating revenue is spent effectively and economically.
(3) Board members must exercise judicious control of the premises entrusted in their
care, including community rooms and public spaces.
(4) Members of the Board of Directors have an obligation to provide to
tenant/cooperators the most economical operation of the development without
endangering the long term interest of the project.
(5) Board members should be aware of and responsive to tenant cooperator
grievances.
(6) Upon HPD's request, the housing company shall submit to HPD a copy of the
minutes from the relevant meeting, certified as to correctness by the housing company's
secretary.
(7) No board member shall receive any preferential treatment or thing of value as a
result of his or her board membership.
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Section 3-14: CorporaCe Action.
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(8) Members or o~cers of the Board of Directors must occupy a dwelling unit at the
mutual housing company development represented by such Board of Directors as his or
her primary place of residence.
(e) Duties and powers. The Board of Directors has the responsibility for establishing
policy covering administration of property, interests, business and transactions of the
corporation and may delegate to officers such authority as it deems necessary. Sound
organizational policy dictates that individual members of the Board should not intertere
with day-to-day management and operation of the project or with its employees or intrude
upon management functions. Failure to adhere to this policy reduces the efficiency of the
operating staff by creating conflicts in control and in the chain of command. However, the
Board as a whole is obligated to ensure that the day-to-day operations of the housing
company are handled in the most efficient and expeditious manner and nothing herein
should be construed to reduce that responsibility.
(~ Capital assessments by a mutual housing company.
(1) Capital assessments. A mutual housing company may, by vote of its directors
followed by a vote of the shareholders, assess all shareholders on an equitable basis in
order to undertake a program of major capital improvements or major repairs approved by
HPD. A mutual housing company must obtain a majority of votes at a meeting of
shareholders for this purpose and obtain HPD's approval for the assessment.
(2) Proceeds of capital assessments. The proceeds of capital assessments shall be
deposited in a blocked bank account and all withdrawals from such account shall be
subject to the written approval of HPD. Any surplus remaining in the account upon
completion of HPD approved repairs or improvements shall be added to the reserve fund.
(3) Approval process. A request for approval of a capital assessment shall be
submitted in writing to HPD, and shall specifically indicate the type of capital
improvements or repairs required, along with an estimate of probable cost and the
timetable for completion of the proposed program. Contracts for completion of the
program shall be subject to the appropriate provisions of HPD rules [and regulations], and
shall include a provision that the acceptance of all work is subject to the approval of HPD.
(g) Conflicts of interest prohibited in mutual housing companies. No officer or member
of the Board of Directors or their immediate family:
(1) shall be or become interested directly or indirectly in any manner whatsoever in any
business dealing with the mutual housing company except for resale of shares of their
own apartments.
(2) shall act as attorney, accountant, managing agent, broker or employee for any
person, firm or corporation interested directly or indirectly in any manner whatsoever in
business dealings with the mutual housing company;
(3) shall accept any valuable gift, whether in the form of service, loan, thing or promise,
or any other form from any person, firm or corporation which to his or her knowledge, is
interested directly or indirectly, in any manner whatsoever, in business dealings with the
mutual housing company.
(4) Any deviation from the above requires prior written approval of HPD.
(h) Annual meetings and elections.
(1) The Board of Directors of a mutuaF housing company shall hold regular meetings for
the conduct of business. In addition, an annual meeting for the election of directors shall
be held at a time and place, and in the manner prescribed by the mutual housing
company's by-laws.
(2) (i) All elections of directors for a mutual housing company that has not been
refinanced under 223(fl of the National Housing Act must be supervised by an
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independent election company or the mutual housing company's attorney and/or

accountant. Prior to conducting the election, the mutual housing company must notify
HPD in writing of the name of the independent election company, or the alternate
supervisor of the election, and of the intended election procedures.
(ii) A mutual housing company may request a waiver from the requirements of
subparagraph (i) of paragraph two of this subdivision by making a written submission at
least sixty days prior to the election of directors to the Assistant Commissioner of Housing
Supervision.
(iii) When the cost of an independent election company meets the dollar threshold, the
contract between the independent election company and the mutual housing company will
require HPD's approval in accordance with 3-07 of this chapter.
(i) Voluntary dissolution.
(1) Subdivisions two and three of section 35 of the Private Housing Finance Law, with
respect to City-aided limited-profit housing companies, provides as follows:
"A company aided by a loan made after [May 1, 1959] may voluntarily be dissolved,
without the consent of [HPD], not less than twenty [(20)] years after the occupancy date
upon payment in full of the remaining balance of principal and interest due and unpaid
upon the mortgage or mortgages and of any and all expenses incurred in effecting such
voluntary dissolution. Upon such dissolution, title to the project may be conveyed in fee to
the owner or owners of its capital stock or to any corporation designated by it or them for
the purpose, or the company may be reconstituted pursuant to appropriate laws relating to
the formation and conduct of corporations, provided, however, that prior to any such
dissolution and conveyance or reconstitution, payment shall be made of all current
operating expenses, taxes, indebtedness and all accrued interest thereon and the par
value of and accrued dividends on the outstanding stock of such company. If
after making such payments, and after conveyance of the project, a surplus remains in the
treasury of the company, such surplus . .shall upon dissolution, be paid into the general
fund of the [City of New York]. After such dissolution and conveyance, or such
reconstitution, the provisions of [Article II of the Private Housing Finance Lawj shall
become and be inapplicable to any such project and its owner or owners and any tax
exemption granted with respect to such project pursuant to [33 of the Private Housing
Finance Law] shall cease and terminate."
(2) Notice of Intent for Rental Companies. A rental housing company intending to
dissolve and/or reconstitute pursuant to 35, shall submit to HPD no later than 365 days
prior to the anticipated date of dissolution and/or reconstitution, anotice of such intention
("Notice of IntenP') which shall contain the following information and supporting
documents:
(i) Name and address of the housing development;
(ii) Name and business address of the beneficial and legal owners) other than limited
partners and stockholders;
(iii) Name and address of proposed transferee, if property is being sold or transferred
and the proposed date of any such transfer;
(iv) A current rent roll reflecting rents last ordered by HPD and/or by HUD including
surcharges; subsidy and other special charge data;
-(v) A list of tenants who are presently receiving rent subsidies which may be
discontinued as a result of dissolution and the proposed rents to be charged such subsidy
recipients after dissolution;
(vi) A copy of any applicable documents relating to the rental development, including,
but not limited to, the urban renewal plan, the plan and project, the deed or lease, the land
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disposition agreement, any applicable Board of Estimate or City Council resolution and the
temporary certificate of occupancy and permanent certificate of occupancy, or any other
documents requested by HPD; and
(vii) A list of all State, municipal and/or federal financial assistance or subsidies
received by the housing development (such as low income housing tax credits, tax exempt
bond financing, interest reduction subsidy under Section 236 of the National Housing Act,
as amended, project-based Section 8 under the United States Housing Act of 1937, as
amended, housing choice vouchers, rent supplement, J-51 or other tax exemption and/or
abatement benefits, and flexible subsidy grants) and the amount thereof.
All such documents shall also be given to the Tenants Association as well as to a
management office on site (or, if there is no management office on site, to a management
office located within the city of New York). At such management office, such documents
shall be made available to any tenant of such rental housing company and/or his or her
representative upon request.
The owner shall notify all tenants by ordinary mail or distribution at or under each
apartment door and by posting a copy in a conspicuous place on the lobby floor of each
building affected of its intent to dissolve or reconstitute at or about the same time as the
delivery of the notice of intent to HPD.
(3) Public information notice for rental companies. At least sixty (60) days prior to the
proposed date of dissolution and/or reconstitution, arental housing company intending to
dissolve and/or reconstitute shall serve a Notice of a Public Meeting by distribution under
each apartment door; shall post such notice in three (3) conspicuous locations within the
lobby and elevator areas of each building; and shall send such notice by certified or
registered mail to each of the following:
(i) Commissioner and the Assistant Commissioner of Housing Supervision, and
(ii) The president or chairperson of the Tenants Association.
Such notice shall specify the day, date, time and location of a public information
meeting which shall be held to inform tenants of the proposed dissolution and/or
reconstitution of the housing company. If the public information meeting is outside the
community district in which the housing company is located, the owner must provide
transportation for tenants. Such public information meeting shall be held not less than 10
nor more than 20 days after service of the Notice upon the parties set forth above.
(4) Public information meeting for Rental Companies. Pursuant to the Notice as
specified above, the rental housing company shall conduct at least one public information
meeting with the tenants. At such meeting representatives of the rental housing company
shall inform the tenants of the rental housing company's intention to dissolve and/or
reconstitute; the rental housing company's removal from HPD's jurisdiction and, if
applicable, its subsequent registration with the New York State Division of Housing and
Community Renewal (DHCR) for the purpose of rent stabilization pursuant to the
applicable DHCR rules and regulations; whether rent stabilization will be applicable;
prospective changes in ownership and any other relevant information regarding future
plans for the rental housing company affecting the tenants. A question and answer period
shall be conducted. The Tenants Association may invite local elected officials or other
representatives to
participate.
(5) Where applicable, the rental housing company shall provide evidence that it has
appropriately preregistered all apartments with DHCR, indicating current rents for each
apartment and services provided to the tenants as of the date of dissolution and/or
reconstitution.
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(6) Mutual housing companies-special meeting. A board of directors of a mutual

housing company considering dissolution and/or reconstitution pursuant to 35 shall call a
special meeting in conformance with the mutual housing company by-law requirements for
the purpose of ascertaining shareholder interest in dissolution and/or reconstitution. The
secretary of the board of directors shall submit to HPD a certified resolution stating that
not less than a majority of the dwelling units represented at such special meeting
approved an expenditure of funds in a specified amount not to exceed $100,000 for the
purpose of the preparation of a written feasibility study that will be distributed to each
shareholder no later than sixty days after the preparation of such written feasibility study is
completed, unless the by-laws of the company mandate a greater affirmative vote. Each
dwelling unit shall be entitled to one vote regardless of the number of
shares allocated to such dwelling unit, the number of shareholders holding such shares, or
the provisions regarding voting in such mutual housing company's certificate of
incorporation or by-laws. Said resolution shall include language as follows:
"This resolution authorizes the board of directors to take steps necessary to prepare a
written feasibility study investigating dissolution and/or reconstitution that will be
distributed to each shareholder no later than sixty days after the preparation of such
written feasibility study is completed. This resolution authorizes the expenditure of
for such study, and notifies the shareholders that there are Private Housing
$
Finance Law requirements for dissolution and/or reconstitution. This resolution also
advises the shareholders that any additional expenditure of funds for such study will
require a separate shareholder approval in accordance with the same voting procedures
and cannot exceed $100,000 at any one time, and that the New York State Department of
Law requirements must be met prior to actual dissolution and/or reconstitution."
A certified copy of the resolution shall be submitted to HPD within seven (7) business
days after such vote. Expenditure of funds authorized above shall require prior written
approval of HPD.
The feasibility study prepared in accordance with such resolution shall investigate
dissolution and/or reconstitution and shall include, but not be limited to:
(i) a physical condition survey of the mutual housing company development prepared
by a licensed engineer or architect projecting such developments capital needs and the
costs thereof for the next ten years from the date of such survey;
(ii) projected increases in real property taxes for the next five years due to the loss of
any abatements of and/or exemptions from real property taxation that would result from
dissolution and/or reconstitution;
(iii) advisory estimates from State and City taxing authorities of the real estate and real
property transfer taxes that would result from dissolution and/or reconstitution; and
(iv) a market study prepared by an independent real estate professional containing
projected sales prices for dwelling units if such mutual housing company were to dissolve
and/or reconstitute.
(6-a) Special meeting to authorize preparation of an offering plan and filing of Notice of
Intent.
(i) Pursuant to the applicable notice period in the mutual housing company's by-laws, a
special meeting shall be convened by the board of directors of the mutual housing
company no later than ninety days after the written feasibility study has been distributed to
each shareholder to authorize the (A) expenditure of $
for the preparation and
submission to the office of the Attorney General of the State of New York of a private
cooperative or condominium offering plan for the housing project, and (B) submission to
HPD of the mutual housing company's notice of its intention to dissolve and/or reconstitute
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("Notice of Intent"). Eligible voters for purposes of a quorum and for a vote on preparation
and submission of such plan and such Notice of Intent shall be persons named on the
stock certificate. Preparation and submission of such plan and such Notice of Intent
requires approval of two-thirds (2/3) of the dwelling units in such mutual
housing company. Each such dwelling unit shall be entitled to one vote regardless of the
number of shares allocated to such dwelling unit, the number of shareholders holding
such shares, or the provisions regarding voting in such mutual housing company's
certificate of incorporation or by-laws. On or after the effective date of this amendment to
this subparagraph (i), any other expenditures in furtherance of dissolution and/or
reconstitution that have not already either been authorized pursuant to an agreement
entered into by the board of directors or received the express prior approval of the
shareholders shall require the express prior approval of a majority of the dwelling units in
such mutual housing company before the board of directors is authorized to allocate such
funds in furtherance of dissolution and/or reconstitution. For purposes of this
subparagraph (i), "express prior approval" shall mean that both the purpose of the
expenditure and the exact dollar amount of such expenditure are or
have been approved.
(ii) The Notice of Intent shall be submitted to HPD no later than 365 days prior to the
anticipated date of dissolution and/or reconstitution. it shall be accompanied by evidence
of the appropriate shareholder vote and resolution authorizing the preparation and
submission of the offering plan and such Notice of Intent in accordance with subparagraph
(i) of this paragraph and shall contain the following information and supporting documents:
(A) Name and address of the housing development;
(B) Name and address of proposed transferee, if property is being sold or transferred
and the proposed date of any such transfer;
(C) A current rent roll reflecting carrying charges last ordered by HPD and/or by HUD
including surcharges, subsidy and other special charge data;
(D) A list of cooperators who are presently receiving subsidies which may be
discontinued as a result of dissolution and the proposed carrying charges to be charged
such subsidy recipients after dissolution;
(E) A copy of any applicable documents relating to the mutual development, including,
but not limited to, the urban renewal plan, the plan and project, the deed or lease, the land
disposition agreement, any applicable Board of Estimate or City Council resolution and the
temporary certificate of occupancy and permanent certificate of occupancy, or any other
documents requested by HPD. Such documents shall also be given to a management
office on site (or, if there is no management office on site, to a management office located
within the city of New York). At such management office, such documents shall be made
available to any cooperator of such mutual housing company and/or his or her
representative upon request; and
(F) A list of all State, municipal and/or federal financial assistance or subsidies received
by the housing development (such as low income housing tax credits, tax exempt bond
financing, interest reduction subsidy under Section 236 of the National Housing Act, as
amended, project-based Section 8 under the United States Housing Act of 1937, as
amended, housing choice vouchers; rent. supplement, J-51 or other tax exemption and/or
abatement benefits, and flexible subsidy grants) and the amount thereof;
All such documents shall also be given to a management office on site (or, if there is no
management office on site, to a management office located within the city of New York).
At such management office, such documents shall be made available to any cooperator of
such mutual housing company and/or his or her representative upon request.
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Such mutual housing company shall notify all cooperators by ordinary mail or
distribution at or under each apartment door and by posting a copy in a conspicuous place
on the lobby floor of each building affected of its intent to dissolve or reconstitute at or
about the same time as the delivery of the Notice of Intent to HPD.
(7) Special meeting to authorize dissolution and/or reconstitution of mutual housing
companies. Pursuant to the applicable notice period in the mutual housing company's bylaws, aspecial meeting to authorize dissolution and/or reconstitution shall be convened by
the board of directors of the mutual housing company after the acceptance by the office of
the Attorney General of the State of New York of the filing of the offering plan pertaining to
the proposed transfer from the mutual company to a private cooperative or condominium
corporation. Eligible voters for purposes of a quorum and for the vote on dissolution and/or
reconstitution shall be persons named on the stock certificate. Dissolution and/or
reconstitution of the mutual housing company requires approval of two-thirds (2/3) of the
dwelling units in such mutual housing company. Each such dwelling unit shall be entitled
to one vote regardless of the number of shares allocated
to such dwelling unit, the number of shareholders holding such shares, or the provisions
regarding voting in such mutual housing company's certificate of incorporation or by-laws.
(7-a) Conduct of special meetings.
(i) Special meetings required pursuant to paragraphs six, six-a and seven of this
subdivision shall be conducted no more frequently than once every twelve months.
(ii) Special meetings required pursuant to paragraphs six-a and seven of this
subdivision shall be conducted by an independent election company. At least sixty days
prior to conducting such special meetings, the mutual housing company must notify HPD
in writing of the name of the independent election company, and of the intended special
meeting procedures, and HPD must issue its approval in writing of such independent
election company and of the intended special meeting procedures before such special
meeting can take place.
(iii) If the cost of any special meeting required pursuant to paragraphs six, six-a and
seven of this subdivision exceeds $15,000 in housing companies with fewer than five
hundred (500) dwelling units or $30,000 in housing companies with at least five hundred
(500) dwelling units, the contracts will require HPD's prior written approval. With respect to
special meetings required pursuant to paragraphs six-a and seven, the independent
election company must submit proof to HPD that the requirements of this subparagraph
have been met.
(8) Operating Documents of Mutual Housing Companies. Each mutual housing
company shall provide in any voting provisions in its certificate of incorporation and bylaws that in the shareholder votes required pursuant to paragraphs six, six-a and seven of
this subdivision, each dwelling unit shall be entitled to one vote regardless of the number
of shares allocated to such dwelling unit, the number of shareholders holding such shares,
or any other provisions regarding voting in such mutual housing company's certificate of
incorporation or by-laws.
(9) Waiting list notifications. Both rental and mutual housing companies shall submit an
affidavit certifying that each applicant on such housing company's apartment waiting list
has been. advised in writing of the proposed dissolution and/or reconstitution and that feeshave been returned to said applicants prior to dissolution and/or reconstitution. Further,
the affidavit shall state that any funds unreturned for lack of proper address or other
technicality shall be escrowed and returned upon applicants request.
(10) Payment of mortgages) and other indebtedness by rental and mutual housing
companies. On the date set for dissolution and/or reconstitution and mortgage
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prepayment, the housing company shall submit to HPD payment in a form approved by
HPD for ail principal, interest, supervisory fees, surcharges, amounts payable pursuant to
residual receipt notes and any other amounts which may be owing to the City of New
York, including any surplus due to be paid into the general fund of the City pursuant to
Private Housing Finance Law Article II, 35(3).
(i) At least sixty (60) days prior to the date set for dissolution and/or reconstitution and
mortgage prepayment, a schedule of all accounts payable, taxes due and any other
indebtedness, including the par value and accrued dividends on outstanding stock (or, in
the case of a partnership, accrued distributions) shall be submitted to HPD for its review
and written approval; said schedule to be prepared and certified to HPD by an
independent certified public accountant acceptable to HPD. Such schedule shall contain a
listing of all items of indebtedness, the amount thereof, the source of payment thereof and
the anticipated date of payment, plus the amount of money anticipated to be paid to the
City from the remaining surplus. At the time of dissolution and/or reconstitution, such
certified schedule shall be amended to reflect the current status of all accounts, and the
exact amount, if any, owed to the City. Housing company funds may not be used for the
purpose of prepayment of the mortgage debt.
(ii) Accounts payable may include monies owed on executed contracts for repairs or
capital improvements, subject to HPD approval. Any contract for capital improvement or
repair work in an amount in excess of $15,000 executed within ninety (90) days prior to
submission of a Notice of Intent to dissolve and/or reconstitute other than contracts for
projects subject to HUD supervision must have a statement attached to the contract
submission, sent to HPD for approval, advising HPD that the housing company is
contemplating dissolution and/or reconstitution at the time of said submission of the
contract. Failure to submit such contracts may result in exclusion of their cost in
calculating surplus.
(iii) No legal and accounting fees or other costs in a rental development associated
with dissolution and/or reconstitution shall be charged to the housing company.
(iv) Where applicable, the housing company shall submit evidence of payment of any
relevant mortgages.
(11) Issuance of letter of no objection to rental and mutual housing companies. Upon
payment by certified check or checks from a New York clearing house bank of all amounts
owing to the City and/or other mortgagee and certification of compliance with all applicable
rules and provisions of law relating to dissolution and/or reconstitution, HPD shall issue a
Letter of No Objection to the housing company's dissolution and/or reconstitution.
(12) Notification to New York City Department of Finance. On the date of dissolution
and/or reconstitution, both rental and mutual housing companies shall send written
notification to the Department of Finance that the property owned by the housing company
is to be restored to a full taxpaying position effective the date of dissolution and/or
reconstitution. Acopy of such notice shall be sent to the HPD Division of Housing
Supervision.
(13) Notification to senior citizen rent increase exemption (SCRIE) program. No later
than ten days after the date of dissolution and/or reconstitution, both rental and mutual
housing... companies shall.. send written notification.. to the HPD Division of Housing
Supervision's SCRIE unit of said dissolution and/or reconstitution and to all SCRIE
recipients advising them of their status after dissolution and/or reconstitution.
(14) Terminology Used by Mutual Housing Company. Whenever a mutual housing
company uses the term "dissolution," it shall include reconstitution where such housing
company elects to reconstitute upon dissolution of such housing company. Furthermore,
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where the mutual housing company's board or the sponsor of a cooperative conversion of
a mutual housing company represents in its cooperative offering plan or other documents
that such mutual housing company is amending and/or restating its certificate of
incorporation and/or that the shareholders will be voting on a voluntary reconstitution and
conversion from alimited-profit mutual housing company to a private cooperative, section
35 of the Private Housing Finance Law designates these actions as a dissolution and
reconstitution of the former limited-profit housing company cooperative.
(15) Notwithstanding anything to the contrary contained in this subdivision, if a mutual
housing company intends to transfer the property to a housing development fund
company (organized pursuant to Article XI of the Private Housing Finance Law) that will
enter into athirty-year regulatory agreement with HPD, a vote of the shareholders of such
mutual housing company to authorize such transfer shall take place only after such mutual
housing company has submitted an exemption application to the office of the Attorney
General of the State of New York. Such transfer shall be approved by a majority of the
dwelling units in such mutual housing company. Each such dwelling unit shall be entitled
to one vote regardless of the number of shares allocated to such dwelling unit, the number
of shareholders holding such shares, or the provisions regarding voting in such mutual
housing company's certificate of incorporation or by-laws.
(j) Proxies, Direct Mail Ballots and Absentee Ballots.
(1) With HPD's approval, a mutual housing company may require a standard form and
procedure for the casting of proxies or absentee ballots in any matter requiring a
shareholder vote.
(2) Notwithstanding anything to the contrary contained herein, in any vote conducted
pursuant to paragraphs six-a or seven of subdivision (i) of this section, voting by proxy
shall not be permitted. However, HPD may approve, in writing, a standard form direct mail
ballot for transmission to the independent election company engaged to conduct any votes
pursuant to paragraphs six-a and seven of subdivision (i) of this section. Such standard
form of direct mail ballot shall be invalidated by the shareholder executing such ballot if
such shareholder appears to vote in person in any vote conducted pursuant to paragraphs
six-a or seven of subdivision (i) of this section.
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Section 3-15: ParCnerships.
Page 1 of I

Home > Section 3-15: Partnerships.

(a) Partnership agreements. Certain housing companies are permitted to become
partners of partnerships formed pursuant to Section 16 of the Private Housing Finance
Law. Partnership Agreements and amendments thereto are subject to prior approval in
writing by HPD. Admission, withdrawal or retirement of general partners is [also] subject to
the prior written approval of HPD.
(b) Partnership distributions. All distributions of any partnership organized pursuant to
16 of the Private Housing Finance Law are subject to the written approval of HPD. All
such distributions must be in accordance with the rules of HPD and with the requirements
of the Private Housing Finance Law.
(c) Related party transactions. In the event that a housing company employs or
contracts with any person or entity in which any partner of such a partnership is directly or
indirectly an interested party, the partnership shall disclose such fact to HPD.
(d) Financial records. A partnership formed pursuant to 16 of the Private Housing
Finance Law shall furnish to HPD all financial and other reports required by HPD.
(e) Removal of directors. In the event that HPD exercises its right to remove the
directors of a housing company, the housing company as a general partner shall have the
right to terminate the exercise of all rights and powers by any other general partner and to
exclusively exercise all rights and powers in connection with the project so long as HPDappointed directors continue to serve.
(fl Transfers of interests. All transfers of general partnership interests are subject to the
prior written approval of HPD. HPD may require, as a condition of admission or
substitution of general partners all such information regarding any proposed new general
partner as it deems necessary.
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Section 3-16: Managing Agents Agreements.
Page 1 of 8
Published on NYC Rules (http://ruies.citvofnewyork.us)

Home > Section 3-76: Managing Agents Agreements.

(a) Managing agents agreement required. All housing companies are required to enter
into written agreements for management services which must be approved in writing by
HPD. This subdivision (a) applies to all agents, corporate or individual. Managing agent
agreements are subject to the provisions of subdivision (e) of 3-13 of this chapter
regarding debarment.
(b) Criteria for selection of managing agent.
(1) The prospective agent, corporate or individual, must be a real estate broker in good
standing duly licensed by the State of New York. Site managers employed by the
prospective agent must be certified, by an organization acceptable to HPD, within twelve
(12) months after assignment to an HPD-supervised housing development. The
certification requirement cannot be waived by transferring the site manager to an alternate
HPD-supervised site prior to the end of the twelve month period.
If a housing company elects to undertake self-management of its housing development,
it must seek written approval from HPD. The person being employed to perform the role of
manager must be approved in writing by HPD. If the manager is an employee of the
housing company, he or she is not obligated to have a real estate broker's license.
However, the employee-manager must be certified, by an organization acceptable to
HPD, within twelve (12) months after his or her initial employment date.
(2) The agent must provide a fidelity bond in an amount and form and with a surety
approved by HPD.
(3) The agent shall provide evidence of experience and capability commensurate with
the responsibility it seeks to undertake.
(4) The agent may be required to submit a management plan proposing a program
conducive to proper maintenance and economic viability of the project, and to harmonious
relations among tenanUcooperators, management and the community. The plan shall
include, but shall not be limited to, policy regarding deployment of personnel,
tenanUcooperator-management relations, tenanUcooperator selection, rent/carrying
charge collection procedures, agency reporting procedures, fiscal accountability, physical
plant maintenance, equal opportunity measures and security measures. The plan shall
take into account the characteristics of the development, its neighborhood and type of
tenancy (e.g., senior citizen or handicapped). The plan and its implementation will be
considered in determining the agents employment, renewal and compensation, and will
be subject to HPD review and written approval.
(5) The. agent must. maintain.. an office.. or place of business..in the metropolitan area of
no cost to the housing company where it will keep all books, records, bills and other
documents pertaining to the housing company. These records will be available for
inspection and review by the owner, HPD or other interested parties as permitted by
statute or rules of HPD.
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(c) Term of managing agenPs agreement. (1) Any managing agent's agreement shall
be in a form approved by HPD and shall be of no force or effect until the contract has
been approved in writing by HPD.
(2) All new managing agent's agreements shall have a term of one (1) year
commencing July 1st and terminating on June 30th of the following year. All renewals
shall have a similar one (1) year term; provided, however that if a new managing agent
agreement commences after July 1st, it still shall terminate on the June 30th following the
commencement of such agreement.
(3) Managing agent agreement renewals must be submitted to HPD for written
approval.
(4) Any managing agent's agreement shall provide that it is subject to termination
without cause upon thirty (30) days written notice by the housing company or HPD. HPD
or the housing company shall have the right to immediately terminate any managing agent
for cause.
(5) Promptly upon any termination, the managing agent shall turn over to the housing
company, all project records, rent rolls, bills, cancelled checks, bank statements, bank
books, waiting lists, correspondence, ledgers and all other documents related to or owned
by the housing company.
(6) HPD may review the performance of a managing agent at any time and may solicit
comments from owners, tenants, and others relating to the performance of the managing
agent.
(d) Managing agents fee.
(1) The managing agents fee will be negotiated by the housing company and will be
subject to approval by HPD.
(2) The fee may be further adjusted on a compound basis by a percentage to be
established annually by HPD, said percentage may be subject to negotiation by the
housing company, but may not exceed the maximum percentage authorized by HPD.
(3) If a new managing agent enters into an agreement with a housing company to
replace an existing agent at a development, the maximum fee which can be paid to the
new agent will be the fee established for the prior agent, plus any cumulative percentages
adjustments which have been approved by HPD, regardless of whether the prior agent
was given said increases. The new agreement is subject to negotiation by the housing
company within the maximum established above.
(4) If, upon evaluation by HPD, it is determined that an agents performance has not
been satisfactory during the prior year, the agent shall not be entitled to the annual
increase in its fee. in its evaluation, HPD will consider comments from the housing
company and the Tenants Association but will make the final determination regarding the
increase. HPD will advise the housing company in writing at least 30 days prior to the
agreement renewal date each year if approval of the annual increase is being withheld
and the reasons therefor.
(5) An approved annual increase in the managing agent's fee will become effective on
July 1st of each year.
(6) In the event a newly constructed development goes into occupancy, the managing
agents fee shall be negotiated. by the. housing company;. but:. in no-event shall- it exceed the highest fee plus cumulative increases for a development of comparable size and
nature already in existence within the program. Comparability will be determined solely by
HPD.
(7) If HPD disapproves an annual increase for a managing agent, HPD may within a
reasonable period of time meet with the representatives of the housing company and the
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managing agent to discuss the reasons for HPD's dissatisfaction. The managing agent
shall take such steps as deemed necessary by HPD to satisfy HPD requirements. If the
agents performance remains unsatisfactory, HPD may, upon notice to the housing
company, terminate the managing agents agreement.
(e) Duties and responsibilities of managing agent. The principals of the managing
agent shall devote a reasonable percentage of their time in supervising management
duties of their subordinate staff. Said management duties shall include, but shall not be
limited to, the following:
(1) investigate, hire, pay, supervise and discharge all personnel necessary to be
employed in order to properly maintain and operate the development in accordance with
an operating schedule, job standards and reasonable and necessary wage rates approved
by the housing company. Such personnel shall be considered employees of the housing
company and compensation for the services of such employees shall be considered an
operating expense of the company, provided, however, that in each development the
managing agent shall employ and shall compensate out of its fee one or more responsible
individuals as approved by HPD and the housing company whose job it shall be to carry
out the responsibilities of the managing agent at the premises;
(2) prepare tax records, including withholding and social security records for the
employees of the development, and shall administer required programs of workers'
compensation and other employee liability insurance programs;
(3) collect all monthly rents, carrying charges and all other charges due from
tenant/cooperators both residential and commercial, and from other users or
concessionaires; including, but not limited to, licensees, and take such action with respect
thereto as the owner may authorize;
(4) cause the buildings and grounds of the development, and all equipment
appurtenant thereto to be maintained according to standards acceptable to the housing
company and to HPD;
(5) subject to the approval of the owner and in accordance with HPD rules, contract for
water, electricity, gas, fuel oil, extermination and other necessary services;
(6) submit tenanUcooperator applications to HPD for approval; maintain waiting lists in
accordance with HPD rules and utilize such lists in the re-rental of vacated apartments or
resale of shares in a mutual housing company; perform all services in connection with the
processing of applications resulting from such reletting or resale;
(7) diligently undertake the renting of any parking spaces, commercial and nondwelling space in the project, arranging for the execution of such leases or permits as may
be required;
(8) undertake recertification of tenanUcooperator income as required by HPD or by
federal regulations;
(9) prepare and submit annual operating budgets, monthly operating reports, rent rolls,
vacancy reports, rent arrears reports, surcharge tabulation sheets, equal opportunity
reports, HUD excess income reports, where applicable, and any other documents required
by the housing company or HPD;
(10) maintain books and records relating to the development;
{11) establish. operating-bank-accounts-and make-deposits and withdrawals in such
account as directed by the housing company; maintain a blocked reserve account as
required by HPD and invest the funds of such account in accordance with HPD rules to
attain the maximum return on investment;
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(12) advise the housing company and HPD of projected needs for repairs and
replacements at least once each year; review physical inspection reports and effect
compliance;
(13) submit contracts and retainers for HPD approval in accordance with HPD rules;
(14) process tax matters in a timely manner;
(15) conduct an annual inspection of all apartments for the purpose of identifying
unreported electrical or other equipment (air conditioners, freezers, washing machines
and dryers), observing the physical condition of the apartments, and ascertaining
compliance with the rules and regulations of the project, HPD and HUD, where applicable,
and report its findings in writing to the Owner and HPD;
(16) receive, record and respond to all service requests made by tenants in a timely
manner; and
(17) carry out such other duties and responsibilities as may be stipulated by the
housing company or HPD and as may be included in the management agreement.
(fl Allocation of management expenses. In order to establish a uniform allocation of
management expenses between the managing agent and the housing company, the
below listed charges are allocated as follows:
Charge to
Managing
Agent
Housing
Company
(1) Item of expense

(i) Wages for managing agent's staff
(ii)
(A) On site
(B) Central office
Sight staff, where applicable
Case by Case Basis
(iii)
Messenger service and out of

pocket expenses for deliveries
(iv)
Travel expense from central

office to site and back
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(v) Travel expense to and from HPD

for such things as meetings
(vi) Overtime for emergencies or

deadlines
(vii)
Legal and accounting fees of

managing agent
(viii)
Rent hearing participation
1.1
(ix) Cost of preparing ali reports

required by HPD, HUD, where
applicable, or any other city,
state, or federal agency
(2) On site furnishings

(i) Office furniture (desk, chair,
carpet)
(ii) Office equipment, purchased or

rented (computers, facsimile
machine, mimeo, xerox,
typewriters, adding machines)
(iii)
EI
Maintenance and repair of

equipment
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Section 3-16: Managing Agents Agreeil~ents.
Page 6 of 8
(3) On site supplies and services

(i)
Housing company stationery,

plain and copy paper
(ii) Pens, pencils, clips, carbon

paper and other office supplies
(iii) Postage
(iv) Telephone
(A) On site
(B) Central office
X
X
(v) Printing of leases, notices and

advisories to tenant/cooperators;
proxies and other forms for
Board elections
(vi) Photocopying and other

reproduction costs
(vii)
(viii)
Fidelity Bond and other

insurance covering
management operation
Case by Case Basic
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(ix) Lock box service
(g) Leasing of commercial space, commissions. In the leasing of commercial space,

payment of real estate brokerage commission shall be solely in accordance with the
following rules:
(1) No brokerage commissions shall be permitted for that part of a lease term in excess
of 20 years.
(2) No brokerage commissions shall be permitted for:
(i) tax payments deemed to be additional rent and paid by the tenant,
(ii) options to renew for an additional term of years, unless such option shall have been
duly exercised in accordance with the terms of the lease or
(iii) payments for items not included in basic rent, including, but not limited to, utilities
and costs of improvements made by the owner.
(3) Maximum brokerage commissions shall be permitted in accordance with the
following schedule, based on the rentals charged the tenant:
First year or any fraction thereof
5%'/Z
Second year or any fraction thereof
2'~2%
Third year up to and including the tenth year
2%'/~
Eleventh year up to and including the

twentieth year
~'~z%
(4) Brokerage commissions earned and due the broker, shall be paid by the
housing company in an amount not to exceed the dollar amount of the nonrefundabie security held by the housing company at the time the lease is
approved by HPD: The balance due; if any,shall be paid when the tenant takes
possession of the premises in accordance with the terms of the lease.
(5) Brokerage commissions earned and due the broker, where the tenant is a bank,
supermarket chain or where the tenant's latest published credit rating is "A" or better and
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Section 3-16: Managing Agents AgreemenCs.
Page 8 of 8
no security deposit is required under the lease, shall be paid by the housing company
when the lease is approved by HPD.
(6) When requested by HPD, the broker shall submit trade references, financial
statements and any other credit information which shall be properly authenticated in order
to determine the credit-worthiness of the tenant.
(7) The brokerage agreement shall constitute the complete understanding between the
housing company and the broker. There shall be no payments to the broker beyond those
authorized by such agreement.
1) Then %>
~~~
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Section 3-17: Housing Company Responsibilities to Teuai~t/Cooperators.
Page I of 2

Home > Section 3-17: Housing Company Responsibilities to TenanUCooperators.

(a) Tenants Association. (1) All rental housing companies shall recognize a duly
constituted Tenants Association that will be representative of the tenant body as a whole.
(2) A Tenants Association shall be duly constituted when a petition is signed by tenants
representing no less than forty (40%) percent of the dwelling units. A group seeking
recognition on the basis of such petition must submit the original petition to HPD and a
copy to the housing company, and must arrange for the posting of a notice in each
building of the development advising the other tenants of their intention to seek
recognition.
If HPD determines that the proposed group has been duly constituted, it will advise the
housing company in writing of its decision to recognize the group. In the event other
tenants representing no less than forty (40%) percent of the dwelling units in the
development seek recognition of an alternative group, the housing company shall provide
for an election to determine which shall be the duly constituted Tenants Association. In
such an election each dwelling unit in the development shall be accorded one vote.
(3) Upon recognition of a Tenants Association, an election of officers must be held and
the names of the officers of said association shall be furnished to HPD.
(4) HPD reserves the right to review and approve the by-laws and constitution of a
Tenants Association.
(5) Members or officers of the Tenants Association must occupy a dwelling unit at the
rental housing company development represented by such Tenants Association as his or
her primary place of residence.
(b) Availability of housing company records. (1) The rental housing company shall
provide the Tenants Association with copies of operating budgets and financial statements
of the housing company within 30 days after said documents are filed with HPD.
(2) In a rental development which does not have a duly constituted and recognized
Tenants Association, the rental housing company shall maintain copies of the operating
budget and financial reports in the management office on site. If there is no office on site,
the documents shall be made available upon request.
(3) Any tenanUcooperator or any Tenants Association's duly authorized representative
may audit the books of the housing company during normal business hours and shall have
access to the financial records upon which such financial statement is based.
(4) In a mutual housing company, the operating budget and financial statements shall
be supplied to all shareholders.
(c) Consultation..The. housing.company or its duly. authorized.. representative shall. meet.
on a regular basis with representatives of a Tenants Association to discuss matters
relating to the development. Such meeting shall take place at the development at a time
mutually convenient to the Tenants Association and the housing company, and shall be
held on a monthly basis unless the Tenants Association chooses to meet on a less
frequent basis.
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Section 3-17: Housing Compairy Responsibilities to "Conant/Cooperators.
Page 2 of 2
(d) Availability of community space. The housing company or its managing agent shall
not unreasonably withhold permission for use of the developments community space from
its residents. A reasonable charge may be made for janitorial or related services. A
deposit may be required for the use of the space which is refundable if the premises is
free of acts of vandalism.
The housing company shall, in consultation with the Tenants Association, establish
priorities for the use of the community space.
If other organizations of tenants exist within a housing development, such as, for
example, a senior citizen's club or garden club, the housing company through its
managing agent, should make every effort to accommodate the needs of these
organizations by providing an opportunity for use of the community space available. While
the Tenants Association has first priority with regard to meeting space, it should not be to
the exclusion of all other tenant organizations in the development.
There is no obligation for the housing company to make community space available for
fund-raising events or for organizations whose membership consists primarily of nontenants. The use of the community room for these purposes should be at the discretion of
the housing company in consultation with the Tenants Association.
(e) Bedbug Disclosure Notification. In accordance with Administrative Code 27-2018.1,
all rental and mutual housing companies must provide notice to each tenant/cooperator
signing a vacancy lease or occupancy agreement of the project's previous year's bedbug
infestation history. Such notice must be in a form approved by the Department.
Source URA: http://rules.citvofnewvork.us/contenUsection-3-17-housing-company-responsibilitiestenantcooperators
Links:
l~ttp:/h~tiiles.cityofne~vyork.us/print/conCent/section-3-17-1io~ising-company-responsibilities-... 2/]6/2016
Section 3-18: Lease Termination and Renewals.
Page I of 3

Home > Section 3-78: Lease Termination and Renewals.

Title 28: Department of Housing Preservation and Development rn > Chapter 3: CitVaided Limited Profit Housing Companies ~,~
(a) Preliminary notice of grounds of eviction, administrative hearing and certificate of
eviction. Except as otherwise provided in this subdivision, no eviction proceeding based
upon a holdover or a breach of the terms of the lease or occupancy agreement shall be
initiated by a housing company against a residential tenanUcooperator without the
issuance of a certificate of eviction by HPD following an administrative hearing by an HPD
designated hearing officer. The hearing officer's decision shall be final without recourse to
an administrative appeal. Notwithstanding the foregoing, such hearing and certificate of
eviction shall not be required for any eviction proceeding based upon non-payment of
renUcarrying charges or any sum which constitutes rent or additional rent pursuant to the
applicable lease or occupancy agreement. Furthermore, at HPD's sole discretion, such
hearing and certificate of eviction may be waived in accordance with
subdivision (e) of this section.
To set an eviction hearing the housing company shall notify HPD in writing of the facts
which it contends justify eviction, together with an affidavit stating that a preliminary notice
of grounds for eviction has been served upon the tenant/cooperator as follows:
(1) The notice shall be sent to the tenant/cooperator by regular first class mail, and by
certified or registered mail, return receipt requested; and
(2) A copy of the notice shall also be served by personal delivery to the
tenanUcooperator; or by delivery to a person of suitable age and discretion occupying the
apartment in question; or if admittance cannot be obtained and such person cannot be
found, by affixing a copy upon the door or placing a copy under the door of the apartment.
(3) The notice may be served simultaneously with any notice to cure which may be
required by the tenanUcooperator's lease/occupancy agreement, and shall advise the
tenanUcooperator of the following:
(i) The specific charges against him or her;
(ii) that he or she has the opportunity to appear before an HPD hearing officer to deny
or explain the charges against him or her;
(iii) that he or she may retain counsel to represent him or her at a hearing;
(iv) that the findings of the HPD hearing officer, should a hearing take place, may be
determinative as to the factual issues.
(b) Administrative hearing. If, after ten days from the date of service of the preliminary
notice of grounds for eviction, the tenanUcooperator has not cured the breach of his or her
lease/occupancy agreement, the housing company may request HPD to proceed to
schedule.. a hearing. at which the. housing. company shall present. to the. hearing:officer: its.
charges against the tenanUcooperator. The housing company shall advise the
tenant/cooperator of the date and place of the hearing in the same manner prescribed for
the service of the preliminary notice of grounds for eviction as specified in paragraphs one
and two of subdivision (a) of this section.
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2/16/2016
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If the tenanUcooperator fails to appear at the designated hearing, he/she shall be

advised by the hearing officer, by regular first class mail, that unless a request to reopen
the matter is received by the hearing officer within a designated period of time, a decision
shall be rendered by the hearing officer based upon the information provided by the
housing company and that such decision shall be final.
All witnesses at the hearing shall be sworn to tell the truth. Witnesses may be examined
and cross-examined by either party and by the hearing officer. The hearing officer may
accept any evidence which he or she deems to be relevant and material. A tape recording
of the hearing shall be made by the hearing officer, and the hearing officer shall arrange
for a transcript of the tape upon the written request of either party, at the expense of the
party requesting said transcript.
In the event the hearing officer finds grounds for the eviction, he or she shall issue a
certificate authorizing the housing company to commence summary proceedings for such
eviction of the tena~t/cooperator, stating the reasons for his or her decision. At the soil
discretion of the hearing officer, such decision may also contain a probationary period or
opportunity to cure. A copy of said certificate shall be sent to the tenanUcooperator and to
his or her attorney, if any, by regular first class mail. Service of process for summary
proceedings may be made simultaneously with or subsequent to the service of such
certificate.
Acceptance of rent/carrying charges after the commencement of eviction proceedings,
pursuant to the administrative hearing process, shall be without prejudice.
Notwithstanding anything to the contrary contained in this subdivision (b), a breach of
lease or occupancy agreement involving hazardous conditions, violent or disruptive
behavior, fraud or illegality shall not be subject to any opportunity to cure by the
tenanUcooperator.
(c) Appeals. There is no administrative appeal from the determination of the hearing
officer. The decision of the hearing officer is subject only to review by commencing an
action pursuant to Article 78 of the Civil Practice Law and Rules.
(d) Summary proceedings. The above procedures do not apply to summary
proceedings for non-payment of rent, carrying charges and any other monetary obligations
of the tenanUcooperator to the housing company pursuant to his or her lease or
occupancy agreement or any other agreement between the tenanUcooperator and the
housing company with respect to ancillary services, except as specified in subdivision (a)
of this section.
(e) Emergency evictions. The above procedures may be waived at the sole discretion
of HPD in any case in which HPD determines that the health or safety of the
tenant/cooperators of a development is jeopardized by another tenant/cooperator or his or
her family, members of his or her household or visitors to his or her premises.
(fl Applicability. The above procedures shall be the sole requirements to
commencement of eviction proceedings and it is the express intention of HPD that no
other section of these rules is applicable.
(g) Lease%ccupancy agreement renewals. The housing company shall offer a renewal
of a tenant/cooperator's lease/occupancy agreement between ninety (90) and one
hundred twenty (120) days prior to the expiration of his or her existing Jeaseloccupancy
agreement, unless the tenant/cooperator shall have materially breached the
lease/occupancy agreement, shall be ineligible for continued occupancy of his or her
apartment, or shall otherwise be found to be a nuisance. Such renewal lease/occupancy
agreement shall be for a minimum of a one-year term.
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Page 3 of 3
If a housing company wishes to refuse to renew a tenant/cooperator's lease/occupancy

agreement, it shall notify the tenant/cooperator with respect to its reason for refusing to
renew in a notice to be served upon the tenanUcooperator in the same manner prescribed
with respect to the preliminary notice of grounds for eviction between ninety (90) days and
one hundred twenty (120) days prior to the expiration of his or her existing
lease/occupancy agreement. A copy of said notice shall be sent to HPD. if the
tenanUcooperator holds over subsequent to the expiration date of his or her lease, the
housing company shall commence eviction proceedings against the tenanUcooperator in
accordance with the administrative hearing process set forth in this section, unless the
material breach of lease relates to non-payment of rent/carrying charges or additional
rent/carrying charges as set forth in subdivision (a) of this section.
(h) Illegal occupancy. A housing company having knowledge of occupancy of an
apartment in conflict with the requirements of the Private Housing Finance Law, HPD rules
or the requirements applicable to the apartment by reason of any federal, state or city
benefit or subsidy, lease or occupancy agreement, or by reason of any other applicable
Iaw or regulation, shall notify HPD in writing of said illegal occupancy. The housing
company shall, as soon as practicable, commence eviction proceedings against the lastauthorized tenanUcooperator of the apartment in accordance with the administrative
hearing process set forth in this section.
An illegal occupant of an apartment shall not be entitled to any protections pursuant to
this section. A housing company shall not knowingly accept rent from an illegal occupant,
and shall seek to recover from such occupant the full market value of the apartment.
The acceptance of rent/carrying charges from or on behalf of an illegal occupant shall
not be deemed to create any right of tenancy or any obligation on the part of the housing
company to afford such person the protection which these rules afford to authorized
tenanUcooperators.
Source URL: http://rules.citvofnewyork.us/content section-3-18-lease-termination-and-renewals
Links:
http:Urules.ciCyofiiewyork.us/print/content/section-3-18-lease-termination-and-renewals
2/16/2016
Section 3-19: Senior Citizen Reny Increase Exemption Program ("SCRIE").
Page 1 of4

Home > Section 3-19: Senior Citizen Rent Increase Exemption Program ("SCRIE").

Title 28: Department of Housin4 Preservation and Development ~,> > Chapter 3: Cites
(a) Background and applicability. Local Law No. 40 of 1976 (26-601 et seq.)
amended the Administrative Code of the City of New York in order to establish an
exemption from rent increases for senior citizens who meet the eligibility requirements
specified therein, and who reside in a dwelling unit whose rent is regulated or established
pursuant to the provisions of Articles II, IV, V or XI of the Private Housing Finance Law.
Amendments to the law in 1977 and 1978 made dwelling units in a dwelling subject to or
initially subject to a mortgage insured by the federal government pursuant to 213 of the
National Housing Act (12 USCA 1715e) eligible for the exemption. The Administrative
Code was subsequently further amended to include increases in charges due to capital
assessments and voluntary capital contributions within the definition of "increase in
maximum rent," and to require that rent increase exemptions and tax
abatements granted for such assessments and contributions be paid back by the
tenanUshareholder to the housing company, and by the housing company to the City,
upon transfer of shares. The amendment regarding capital assessments specifically
excluded any dwelling unit subject to a mortgage insured or initially insured by the federal
government pursuant to 213 of the National Housing Act, as amended (12 USCA
1715e). Subdivision (g) of 3-19 implements the amendment to the Administrative Code.
The rules set forth in this section implement Administrative Code 26-601 et seq., and
are applicable as provided therein. In addition, an amendment was passed on September
6, 1977 to allow portability for senior citizens receiving a subsidy under the rent and
rehabilitation law, the rent stabilization Iaw and focal Law 40 of 1976. Portability means
that a senior citizen with a valid SCRIE subsidy may move within a development, and in
addition, certificates issued by the Department for the
Aging and HPD are interchangeable under conditions set forth in the law.
(b) Eligibility requirements.
(1) The head of household or spouse is 62 years of age or older.
(2) The total disposable income of all members of the household when combined does
not exceed the amount provided for in RPTL 467-c(1)(d).
(3) The increase in maximum rent or carrying charges resulted in the maximum rent or
carrying charge equalling or exceeding one-third of the combined disposable income of all
members of the household. That portion of a rent or carrying charge increase attributable
to gas or electrical utility charges or an increase in dwelling space, services or equipment
is excluded from exemption.
(4) The..head.. of household.is not. receiving.. any other rent. subsidies. other.than public
assistance.
(c) Procedures.
(1) Ahead of household may apply to HPD for a SCRIE subsidy on a form prescribed
and made available by HPD. In addition to the application, he or she must submit any
other documentation necessary to assist HPD in its review.
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SecCion 3-19: Senior Citizen Rent Increase Exemption Program ("SCRIE").
Page 2 of4
(2) HPD shall review the application and shall notify the applicant of its determination.
(3) When HPD determines that an applicant is eligible, HPD shall advise both the
eligible senior citizen and the housing company of the established base rent which the
housing company is to charge the senior citizen. The established base rent shall remain
the same until a change in circumstance occurs.
(4) Senior citizens receiving benefits under this program must complete an annual
recertification form prescribed and made available by HPD.
(5) The effective date of the SCRIE subsidy for applications received by HPD not more
than 120 days from the date of the increase shall be the effective date of the increase.
The effective date of the SCRIE subsidy for all other applications shall be the first day of
the month following the receipt of the application and shall be based only upon the most
recent increase in maximum rent.
(6) It shall be illegal for a housing company to collect any amount for which a SCRIE
subsidy provides credit or to withhold benefits from a tenanUcooperator entitled to a
SCRIE subsidy and collection or retention of any such amount for a dwelling unit occupied
by such eligible head of household shall be deemed a rent overcharge. Upon conviction
therefor, the housing company and its directors and any employee responsible therefor,
shall be guilty of a misdemeanor, punishable by a fine not to exceed one thousand dollars
or imprisonment not to exceed six months, or both.
(d) Reimbursement to housing companies.
(1) On a quarterly basis, HPD will issue Tax Abatement Certificates to all housing
companies which have extended benefits to senior citizens deemed eligible by HPD. The
certificates will be in an amount equal to the difference between the approved
rent/carrying charges for the dwelling units and the amount of the established base rents
charged to the eligible senior citizens.
(2) The housing company, upon receipt of the Tax Abatement Certificate, shall submit
the certificate with the next quarterly real estate tax bill to the Department of Finance,
paying the amount of the bill less the credit for the amount on the Tax Abatement
Certificate. In those instances, where the taxes to be paid are less than the amount to be
abated, HPD shall issue a voucher to the housing company for the balance.
(3) The housing company shall provide HPD with a revised rent roll upon
implementation of each new renUcarrying charge increase.
(4) HPD, at its discretion, may electronically notify the Department of Finance of the
abatement amount in lieu of the issuance of a Tax Abatement Certificate. if HPD
electronically notifies the Department of Finance of the abatement amount, such electronic
notification shall be deemed to be the equivalent of a Tax Abatement Certificate.
(e) Termination of or change of benefits.
(1) Any change in the status of the head of household or members of household which
renders such persons ineligible shall result in the cancellation of benefits.
(2) Any change in income may result in a change in base rent/carrying charges.
(3) It is the obligation of both the recipient of benefits under this program and the
housing company to notify HPD of any change in status or income which may affect
eligibility.
(4) Failure. of a senior citizen. receiving. benefits to recertify on an annual basis will. result
in termination of benefits.
(5) If an audit or other means of verification discloses that an exemption is excessive,
the amount of tax payable by reason of such disclosure and the statutory penalty thereon,
shall be a lien upon the property as of the due date of the tax for which the excessive
exemption was claimed. In the event the excessive exemption was not due to any willful
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Section 3-19: Senior Citizen Rent Increase Exemption Program ("SCRIE").
Page 3 of4
fault of the housing company, the amount of tax payable by reason of the disclosure shall
be a lien upon the property as of the date for payment of taxes next following certification
of such corrected order by HPD.
(fl Portability of benefits.
(1) When a head of household receiving a SCRIE subsidy moves his or her principal
residence to another dwelling unit eligible under this program, the head of household may
apply to HPD for a SCRIE subsidy relating to the subsequent dwelling unit which shall
provide that the head of household shall be exempt from paying that portion of the
maximum rent for the subsequent dwelling unit which is the least of the following:
(i) The amount by which the rent for the subsequent dwelling unit exceeds the
established base rent actually required to be paid in the original dwelling unit;
(ii) the amount of rent abated in the most recent month in the original dwelling unit; or
(iii) the amount by which the maximum rent of the subsequent dwelling unit exceeds
one-third of the continued income of all members of the household.
(2) A senior citizen seeking to transfer his or her rent exemption must complete and
submit a SCRIE application and portability request prescribed and made available by
HPD. In addition to submission of the application form and portability request, proof of
income and proof of previous rent and subsidy are required.
(g) Procedures for applications for SCRIE subsidies for charges attributable to capital
assessments and voluntary capital contributions.
(1) This subdivision implements the provisions of 26-605 and 26-615 of the
Administrative Code regarding SCRIE subsidies for charges attributable to capital
assessments and project-wide voluntary capital contributions, which are approved by
HPD, where applicable.
(2)(i) Ahead of household who receives an increase in carrying charges based upon a
charge attributable to capital assessments or voluntary capital contributions shall make an
application for such certificate to HPD on a form prescribed and made available by HPD.
(ii) In addition to the application, a head of household must submit any other
documentation necessary to assist HPD in its review.
(3) HPD shall review the application and any supporting documentation to determine
the eligibility of the head of household. HPD shall approve or disapprove applications,
and, if it approves, shall issue a written notification to such head of household and to the
affected housing company indicating the total amount of SCRIE subsidy available
pursuant to this subdivision. if the application is disapproved, HPD shall issue a written
notification of disapproval to such head of household indicating the reasons for the
disapproval.
(4) Upon receipt of notification of eligibility, the housing company shall provide the
decrease in charges applicable to the capital assessment or voluntary capital contribution,
and HPD shall reimburse the affected housing company in accordance with the
procedures provided in subdivision (d) of this section in an amount equal to the total
capital assessment or capital contribution.
(5)(i) Documentation of imposition of a capital assessment or voluntary capital
contribution shall be provided by the affected housing company to HPD, in addition to any
further information required... by HPD to make a determination of eligibility under this
subdivision.
(ii) A housing company which imposes a capital assessment or voluntary capital
contribution shall provide notice to alI persons affected by such capital assessment or
voluntary capital contribution of the potential availability of a SCRIE subsidy pursuant to
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Section 3-19: Senior Citizen Rent Increase Exemption Program ("SCRIG").
Page 4 of4
this subdivision. Such notice shall be included in the notice to such person of the
imposition of such capital assessment or voluntary capital contribution.
(6)(i) Notification and documentation of any transfer of shares by an eligible head of
household who has received a SCRIE subsidy under this subdivision shall be provided in
writing to HPD by the affected housing company immediately upon the closing date of
such transfer except in cases involving a succession of rights claim, in which case
notification shall be made in writing within five days of approval of the succession claim.
(ii) The affected housing company shall be entitled to deduct from the amount to be
paid to such eligible head of household for the sale of such shares all amounts previously
covered by a SCRIE subsidy which are attributable to a capital assessment or voluntary
capital contribution. Where there is a transfer of shares through succession rights and
where the successor is not entitled to a SCRIE subsidy under this subdivision, the affected
housing company shall be entitled to receive a payment from the successor in an amount
equal to all SCRIE subsidies attributable to a capital assessment or voluntary capital
contribution.
(iii) Such housing company shall not approve the transfer of shares unless it has
received the payment required by subparagraph (ii) of this paragraph, or made the
deduction therein authorized.
(iv) Payment by such housing company of the amount attributable to the capital
assessment or voluntary capital contribution set forth in subparagraph (ii) of this
subdivision shall be made to the Department of Finance through an adjustment in tax
abatement status issued to the Department of Finance by HPD, or by remittance by such
housing company of such amount directly to the Department of Finance and written
notification to HPD of such payment by the housing company within 90 days of the
collection thereof. Payments due to the City in accordance with this subparagraph shall be
deemed a tax lien and may be enforced in any manner authorized for the collection of
delinquent taxes on real property.
(7) The provisions of this section shall be applicable to an application pursuant to this
subdivision except where in conflict with this subdivision, in which case, the provisions of
this subdivision shall control.
Source URL: http://rules.citvofnewvork.us/contenUsection3-19-senior-citizen-rent-increase-exemptionprogram-scrie
Links:
http://rules.cityofiiewyorK.us/print/content/section-3-19-senior-citizen-rent-increase-exemp... ?/16/2016
Section 3-20: Assignment of tax.[Repealed]
Page 1 of 1

Home > Section 3-20: Assignment of tax.(Repealed]

Title 28: Department of Housing Preservation and Development ~,i > Chapter 3: Cityaided Limited Profit Housing Companies m
3-20 Assignment of tax.[Repealed]
Source URL: http://rules.citvofnewvork.us/contenUsection-3-20-assignment-tax-repealed
Links:
http:/hides.cityofilewyork.us/print/contenC/section-3-20-assigmnent-tas-repealed
2/16/2016
Sectio~~ 3-21: Limited Profit I-Iousing Companies Having Federllly Insured Mot~tgages Pu... Page 1 of4

Home > Section 3-21: Limited Profit Housing Companies Having Federally Insured Mortgages Pursuant to Section 2230 of the National
Housing Act.

Titie 28: De artment of Housin Preservation and Develo ment ~,> > Chapter 3: Cites
(a) General. Certain limited profit housing companies have been refinanced under
223(fl of the National Housing Act through the New York City Housing Development
Corporation (HDC). Such housing companies remain subject to the provisions of the
Private Housing Finance Law and the rules and regulations governing city-aided limited
profit housing companies, except as provided otherwise by agreement with, or regulations
of, the U.S. Department of Housing and Urban Development(HUD). In general, all matters
involving management, maintenance, and operation shall be supervised by HUD except
as otherwise set forth by statute or in this section. Compliance with the requirements of
the Private Housing Finance Law shall continue to be supervised by HPD. To the extent
that HUD should relinquish authority over matters such as rent setting and management
supervision, those responsibilities shall revert back to HPD.
(b) Tenant/cooperator income and eligibility requirements. Tenant/cooperator income
and eligibility standards, as set forth in the Private Housing Finance Law and 3-02 of
these rules apply to housing companies refinanced under 223(fl. This includes, but is not
limited to, rules regarding filing of applications, tenant/cooperator eligibility, maintenance
of waiting lists, occupancy priorities, income verification at admission and during
occupancy, occupancy standards and primary residence requirements.
Refinanced housing companies shall not be required, however, to submit applications
to HPD for its prior approval. Instead, apost-audit of applications shall be conducted by
HPD. Notwithstanding the foregoing, HPD reserves the right, where violations of law or of
HPD rules are found, to reinstitute temporarily or permanently, a requirement of prior
review and approval of all applications for admission to or transfer within a development.
In addition, HPD and/or the housing company shall conduct income verification audits
periodically either as a result of a spot check or other procedures. TenanUcooperators and
members of their household selected for audit shall be required to provide certified copies
of IRS or New York State income tax returns, as requested and shall assume the cost of
such copies.
In refinanced housing companies which have "236" mortgage interest subsidy
contracts, the housing companies are required to meet HUD income limits, where they
differ from HPD, and any other federal law or regulation which may apply unless they are
violative of New York State laws. HPD rules must be met regarding such things as waiting
lists and submission of rent rolls. HUD does not prescribe the form of waiting list for "236"
developments. if a "236" housing company maintains a single bound waiting list in
chronologica(òrder~ ìt sfial( also be required to maintain lists by bedroom size In
chronological order for HPD.
(c) Surcharge billing, collection and remittance. Refinanced housing companies are
obligated to bill and collect surcharges. HPD will continue to supervise the billing and
collection of surcharges as required by the Private Housing Finance Law and 3-03 of this
chapter. All agreements with managing agents must include a provision that it is the
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responsibility of the managing agent to bill and collect surcharges. Refinanced housing
companies are obligated to recognize hardship cases as set forth in 3-03 of these rules.
(d) Housing company funds and bonds. The provisions of 3-04 apply to 2230
housing companies.
(e) Resale of cooperative shares. The provisions of the Private Housing Finance Law
and 3-06 of this chapter apply to mutual housing companies refinanced under 223(fl.
These include, but are not limited to, the provision that a mutual company electing to
amend its by-laws regarding sale of shares, shall submit to HPD for its approval, a Board
of Directors Resolution certified and acknowledged by the Secretary of the Corporation
setting forth the adoption of the amendment and a fully executed copy of a by-law
amendment certified by the Secretary of the Corporation.
In the case of 223(fl refinanced mutual housing companies, where the appliances
were included as security for the insured mortgage, the outgoing shareholder shall be
required to leave behind the appliances which were in place at the time of refinancing or to
replace them with appliances of equal size and amenities.
(fl Occupancy rights of family members and applicability of 235-f of the Real Property
Law. The provisions of 3-02(0) and (p) apply to housing companies refinanced under
223(fl.
(g) Joint ownership of shares. The provisions of 3-06(c) of these rules [and
regulations] apply to housing companies refinanced under 223(fl.
(h) Bequeathing of apartments. In no event may the right of occupancy in a unit in a
refinanced housing company be bequeathed to another. Upon the death of the
tenant/cooperator, the shares must be returned to the mutual housing company which will
arrange for a sale pursuant to 3-06(a) of this chapter. Notwithstanding the foregoing,
eligible members of the tenanUcooperator's immediate family in occupancy may acquire
such shares if they meet the requirements of 3-02(p) of this chapter.
(i) Billing and collection of amounts due on subordinate mortgages. HPD shall bill and
collect amounts due pursuant to the terms and conditions of the Subordinate Mortgage
executed by each housing company in connection with its 223(fl refinancing. Each
housing company is required to submit on a timely basis an annual audited financial
statement. Such statement shall indicate whether or not surplus cash, as defined in the
Regulatory Agreement, is available. If surplus cash is available, and is required to be paid
to the City of New York pursuant to the Disbursement Agreement, a payment equal to the
amount of surplus cash shall accompany the submission of the audited financial
statement.
Q) Submissions. The following documents are required to be submitted to HPD and
HDC on a timely basis:
(1) Audited Financial Statement
(2) Annual Budget(HDC only)
(3) Surcharge Tabulation Sheets(HPD only)
(4) Income Affidavits(HPD only)
(5) Waiting Lists and Internal Transfer Lists(HPD only)
(6) Original Insurance Policies to HDC
(7) Copies of excess..rent..reports as required-in the Federal 236 interest-reduction
subsidy program
(8) Data relating to Senior Citizen Rent Increase Exemption Program (HPD only)
(9) Rent Roll (at request of HPD)
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(10) Data relating to compliance by the housing company with any applicable law, rules,
regulation or administrative order of the city, state or federal government (at request of
HPD)
(11) Amendments to Certificates of Incorporation, by-laws, and partnership agreements
(12) Any and all books and records of the housing company which HPD directs to be
made available
(k) Rent or carrying charge increases. HUD will be responsible for the approval of ail
renUcarrying charge increases with respect to all refinanced developments. HPD and HDC
shall be notified by the housing company of its request for a renUcarrying charge increase.
HUD shall notify HPD and HDC of its approval of any renUcarrying charge increase. A
revised renUcarrying charge roll shall be submitted to HPD and HDC subsequent to
implementation of an increase.
(I) Distributions of surplus cash. All distributions of surplus cash by any housing
company require the prior written approval by HPD.
(m) Reserve requirements. Reserve requirements and releases from reserve accounts
are subject to HUD supervision and approval.
(n) Annual physical inspection. HPD reserves the right to conduct a physical inspection
of each development at any time. A copy of any inspection report prepared by HDC will be
provided to HPD.
(o) Shelter rent certification. HPD shall continue to certify Shelter Rent pursuant to 33
(1)(d) of the Private Housing Finance Law. All housing companies must make timely
submission of all data required to enable HPD to make such certification.
(p) Notifications. Notification of changes in Board of Directors, officers, managing
agents, attorneys and accountants shall be provided promptly to HPD and HDC.
(q) Transfer of ownership interests in rental developments. Ail transfers of ownership
interests in rental developments including changes in general partners are subject to prior
written approval of HPD and HDC.
(r) Terms of subordinate mortgage and disbursement agreement. Nothing contained in
these rules shall limit obligations of housing companies pursuant to the Private Housing
Finance Law or pursuant to the mortgage closing documents applicable to each
development, including, without limitations, the terms and conditions of the Subordinate
Mortgage and of the Disbursement Agreement.
(s) Managing agents agreements. All managing agents' contracts must be sent to HDC
for written approval
HDC will review and approve the selection of and agreements with managing agents of
refinanced developments, including self-management, and renewals or extensions of prior
managing agents' agreements. If HDC approves a managing agents agreement, HDC will
evidence its consent by letter or by executing the managing agent's agreement. HDC will
submit the executed agreement to HUD for approval. HPD reserves the right, in
conjunction with HDC, to review and approve agreements with managing agents of
refinanced developments.
If HDC disapproves a managing agents agreement, HDC will advise the owner of the
refinanced. project.and,HUD.of the reasons for the disapproval
(t) Structural changes and major capital improvements. In order to remodel, add to,
alter, remove or demolish the project or any portion thereof, the owner of a refinanced
project must
(1) notify HUD, HDC and HPD in writing, and
http://r~iles.cityofitewyork.us/print/contenUsectiou-3-21-limited-profit-lousing-companies-... 2/16/2016
(2) obtain the prior written consent of HDC and HUD (and, where necessary, HPD)
except that such notification and consent is not required to perform such minor repairs as
do not require a permit from the City of New York Department of Buildings or to perform
emergency repairs.
(u) Lease terminations and renewals. HPD will apply the procedures set forth in 3-18
of this chapter to ail refinanced projects so that no eviction proceeding may be instituted
against any tenant/cooperator continuing to pay his or her rent/carrying charges without
the issuance by HPD of a certificate of eviction.
(v) Notification of legal proceedings. The housing company or managing agent shall
notify HPD, HDC and the Tenants Association of any litigation by or against the housing
company which would have a material effect upon the financial condition of the housing
company. Failure to notify HPD or the Tenants Association shall in no event be deemed to
afford a defense to litigation.
(w) Removal of Board of Directors. The provisions of the Private Housing Finance Law
and 3-13 of this chapter apply to housing companies refinanced under 2230.
(x) Tenants Association. The provisions of the Private Housing Finance Law and 3-17
of this chapter apply to rental housing companies refinanced under 2230.
(y) Senior citizen rent increase exemption program. The provisions of the Private
Housing Finance Law and 3-19 of this chapter apply to housing companies refinanced
under 223(fl.
(z) Insurance. Refinanced housing companies must meet insurance requirements of
HUD, HDC and HPD. HPD shall be named as an Additional Insured.
Source URL: http://rules.citvofnewvork.us/content/section-3-21-limited-profit-housing-companies-havinqfederally-insured-mortgages-pursuant
Links:
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Section 3-22: Forni of Residential Lease.
Page 1 of 1

Home > Section 3-22: Form of Residential Lease.

Title 28: Department of Housing Preservation and Development ~,> > Chapter 3: Cityaided Limited Profit Housing Companies n~
The form of residential lease including occupancy agreements utilized by housing
companies is subject to the approval of HPD and shall be submitted to HPD, if requested.
All leases shall be for a minimum term of one year. Failure to comply with the foregoing
requirement shall in no event be deemed to afford a defense to the enforcement of a lease
by a housing company.
Source URL: http://rules.cityofnewVork.us/contenUsection-3-22-form-residential-lease
Links:
11tCp://rules.cityofi~ewyork.tiis/print/content/section-3-22-form-residential-lease
3/1C/2016
Section 3-23: Equal Opport~inify Policy.
Page 1 of 1

Home > Section 3-23: Equal Opportunity Policy.

Title 28: Department of Housing Preservation and Development ~,> > Chapter 3: Cityaided Limited Profit Housing Companies n~
All housing companies shall comply with all applicable Federal, state and local laws,
rules and regulations concerning equal opportunity in housing.
Source URL: http://rules.citvofnewvork.us/contenUsection-3-23-equal-opportunity-policy
Links:
littp:/h~ules.cityofnewyork.us/print/content/section-3-23-equal-opporhmity-policy
2/16/2016
Section 3-24: Special Powers.
Page 1 of 1

Home > Section 3-24: Special Powers.

Title 28: Department of Housing Preservation and Development m > Chapter 3: Cityaided Limited Profit Housing Companies ~,~
Notwithstanding any other provisions of this chapter, HPD may authorize special
emergency measures in any instance in which it is determined by HPD that a
development is in serious financial difficulty.
Source URL: http://rules.citvofnewvork.us/contenUsection-3-24-special-powers
Links:
http://riiles.cityofnewyork.us/print/content/section-3-24-special-powers
2/16/2016
Section 3-25: Miscellaneous Provisions.
Page I of I

Home > Section 3-25: Miscellaneous Provisions.

Title 2_8__Department of Housinq Preservation and Development m > Chapter 3: CitVaided Limited Profit Housing Companies rn
(a) HPD Discretion. All determinations to be made by HPD in accordance with this
chapter shall be in the sole discretion of HPD.
(b) Statutory Authority Not Limited. Nothing in this chapter shall be deemed to limit
HPD's authority pursuant to applicable laws.
(c) Technical Violations. Provided that there has been a good faith effort to comply with
this chapter, technical violations of this chapter by HPD shall not invalidate any action
taken pursuant to this chapter, nor shall such technical violations give rise to any rights,
claims or causes of action against HPD or the City of New York. The Commissioner, upon
good cause shown, may alter the timing or sequence of the actions described in this
chapter, provided all affected parties are given reasonable notice.
(d) Severability. If any clause, sentence, paragraph, section or part of this chapter
should 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, section or part thereof correctly involved in
the controversy in which such judgment shall have been rendered.
Source URL: http://rules,cityofnewvork.us/content/section-3-25-miscellaneous-provisions
Links:
http:/hLiles.ciCyofnewyork.us/print/content/section-3-25-miscellaneous-provisions
2/16/2016
DOCUMENT 7
REGULATORY AGREEMENT BETWEEN
GATEWAY I, LCC AND NEW YORK
CITY HOUSING DEVELOPMENT
CORPORATION
~-
NHOP
REGULl~TORY AGREEIVIEN'T
between
GATE~VA..Y I,LLC
and
NEW YORK CITY HOUSLNG IYE'VELOPMENT CO1tPORATION

2053-2057 and 2061-2063 Frederick Douglass Boulevard
June 28.2000
HTACK:
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44,45,46,48 aad 49
~OUN'CY:
Naw Xork
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RECORD AND RE~j~y TO:

New York City Housing
Development Corporation
110 William Stmet, 10'" Floor
New York, New York 10038
Attn: General Couase!
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1VEW YORK CITY FIOUSIPIG DEVELOPMENT CORP~URATION
REGULATORY AGREEMENT
THIS REGUILAI'ORY AGF2EEMENT (this "Agreement")is entered into As of June 28,
2000 by and between GATEW AY I,LLC,a New York limited liabil ity company(the"Mongxgor")
whose address is 18 Bramblebush Road. Croton-on-Hudson, New York 10520 and NBW YQRK
CITX HOUSING llEYELOPMENT CORPORATION ("HDC'9, a corporate governmental
agency constituting a public benefit corporation of the State of New York, whose address is t 10
William Street,l0~'Floor, New York, New Yark 10038.
WITN~SSETH:
WI#~ItEAS,the Mortgagor desires to fnsnce the conswction of a rental housing project
known as 2053S7 and 2061-63 Frederick bougluss Boulevard (the "ProjecP')covering the Project
premises more particularly described on Exhibit A attached hereto and made a part hereof (the
"Freanises"). and
WHEkEAS,the Project wilt be financed in pazt by the proceeds of(a)a construction loan
in the amount of THREE MILLION FIVE HUNDI:ED SEVENTY THOUSAND DOLLARS
($3,570,000)("Construction T.oun") io be provided by 7'he Community Preservation Corporation
("Consuvetion I.endec"), which Construction Loan is evidenced by one or more notes and secured
by ona or more mortgage~"dated ttie date hereofand(b)un additional wnstruction loan in the amount
ofONE MI[.LION Fi't'E E[UNAREU THIR'1'X 1'XIOCISAND pOLLAtiS ($1,530,000)from
HClC("HDC Additional Loan")which HDC Additional Loan isevidenceci byone ormore notes and
secured by one or more matgages~duted chc date hereof: and
y. ~h S~reRo~cJ s;..-1L+~eo,.c5, Ar,.w~
WE[GREAS,it is anticipated that upon completion ofthe Project end sutisfnctio~ of certain
condi!ions,HLx'shall acquire the Ccn::uvctiaa I,osn from the ~onskuclioa Lender si s permanent
loan closing; and
....,.._...
WHEREAS,HDC may issue its Multi-Family Housing Revenue Bonds or ase corprirate
reserves for the purpose of acquiring the Construction I.onn which shall, at the permanent loan
closins, be consolidated, modified and extended to become a pennanec~t first mortgage loan in the
total principal sum of F[VE MILLION ONE ETUNDRED THOUSAND DOLLARS
($S,100,000j(the "Loan"), sand which shalt be evidenced by a Notc Extension,ivlodiCication and
Consolidation Agreement (tfic "Mortgage Note") and secured by a Mortgage Bxtensi~n,
Modification'and ConsolidacicrtAgreement(the "Mortgage"f both made 6ythe Mortgagor;and
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WAEREAS,tha MortRaae may be insdred by the State ofNew York Mortgage Agency:
("SONYMA")ortheNewYorkCityResidentia(MortgageTnsvrnnceCorporation("RfiMIC"}; and
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W}IEREAS,it is anticipated that upon completion of the Project and satisfaction ofcertain
conditions, HDC shall, simultaneously with tha making of the Loan, extend and modify the HpC
Additional Loan to be evidenced by v Subordinate Note Extension and Modification Agreement
("HDC Subordinate Mortgage Note") and secured by a Subordinate Mortgage Extension and
Modification Agreement subjrct and subordinate to the Mortgage("HDC Subordinate Mortgage");
and
WHEREAS,the Project is expected to ru:eivc real prope rty tax bcncfitn pursuant to Section
11-243 of the New Xork City Adminisvative Code or Section 421-a of the New York State fteul
Property Tax Law as a result of the Mortgagor's receipt of the HDC Additional L.ow~; and
WkIEREAS, HDC requires that the Project and the Mortgagor comply with certain
occupancy and operating requirements as a condition to the making of the Loan and the HDC
Additional L.e7en to ensure the fuiCllment of HUC's sramtory purpose of providing housing
accommodationsforoccupanc;;bypersonsapdfamiliesforwhomtheordinaryoporationsofprivate
enterprise cannot provide an adequate supply of safe, sanitary and affordable housing
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NOW THEREkYDIkE,idconsiderAtion of the foregoing, prenvses and for the purpose of

inducing IiDC w provide the funds required f'or the funding of the loan and the iiDC Additional
Loap, and other good and ~~aluable consideration, the receipt mid safficiency of which is hereby
ucknowledged,the parties hecew muGuilly agree as follows:
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Secllau 1- L1eRnitions
-.
1.1
For the pufposes of this Agreement,the following words apd terms shall have the
respective meanings set forth in this Sccuon:
-_
Act"she!! maanthe:Lev: Yo:.k Cir;Horsing Lèveb~m~nt ~orporaE.on P.ct, Article XL~ of

thePriva2eHousingFinanceLaw(Chapter44-boftheConsolidatedLawsofthe State of New York),
as may be amended from time to time aad any rules. regulations. Aolicies and procedures
yromutgateci thereunder
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"Adjusted Rene'shall mean,for a Unit,the Initial Rent as may be adjusted from time to time:
at the time of lease renewal for the Tonant residing in such Unit or vacancy in such Unit up to the:
maximum amowit peruuued by Rent Stabilization or ConVacwel Rent Regulation,as the case may
''
AgreemenP'shatlmeenthisRegMatory Agreement us it muy be ame~deA fromdme to time.
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"Mnual yneome"shalt mean when refercing to the income of a Tenant,the current income
of a!1 individuals residing in the Household of such Tenant calculated in a manner consistent with
the determination of lower income families under Section.8 of the Unitul States.Hotisiug Act of
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3
1937,as amended (or, if such program is termiaatcd, under such program as in eNect inunediately
before such tem~iaation).
"Arta Median Gross Income" shall mean rho median income levels as modified by
2iousehold size for the.New York metropolitan statistical area as determined from time to time by
the Secretary of HUU under Section 8 of the United States Housing Act of 1937, as amended (or,
if such program is terminated, under such program as was in effect immediately before such
mrmination).
/;
"Convacwat Rent Regulation" shall have the mwtung set forW in Sr~ction 6.2(a) of this
Agreement.
"Event of Default" shall have the meaning set forth in Section 12.1(a)of tlris Agr~eemeut.
"HDC" shall mean the New York City Housing Ikvelopment Corporation, s corporate
governmental agency consdtutang a public benefit corporation of the State of New York and its
assigns, or any body, agency or instrumertaliry of the'State of New York which shall hereafter
succcecl to the powers,duties anJ functions of TiDC.
"HDC Additional Loon"shall have sLe meaning set fotth in the WEIEREAS clauses of[lus
Agoeemwc
"HDO CommitmenP' sAall mean the HDC Financing Commitment and Agreement(New
Housing Opportunities Program) dated Tune 28, 2000 by and among Mortgagor, $DC, Steven
~',netano and George DiPlecido (as goazantor(s) of certain obligations as sot forth in the
Conuniunent)as may be amended fi+om time to time.
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"HIDC Rider"s6a11 Gave the nteaniug set forth in Section 6.3(b)of this Agreement.
'EIgC SuboxYlinate Mortgage'sdall have the meaning set foetih in the VVkIEREAS clauses
of this Agreement.
t
"H17C Subordinate Nute"shall have We meaning set forth iu the WFIEREAS clauses ofthis
Agroement
"Household" xhalt mean all of the occupants of a Unit whether or net IogaUy related.
"fiUD" shall mean the United States Depaiunent of Housing and Urtiurt Development and
aqy successorngency.
"Initial Rent"shell mean, witli trspoct to a Unit,the reptiuiUallY paYabie by the fast 3'tnant
to occupy such Umt.
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"L,oen" xhall have the meazring set forth in the WHEREAS clauses of this Agreement.
"Mortgage"shat! hsvc the meaning set Corth in the WHEREAS clauses of this Agreement.
"Mortgage Note" shall wave the meaning set forth o the WEiElYEA$ clauses of this
Agircnunt.
"Mortgagor' shall mnn Gateway S, LLC, a New York 3imited liability company and its
permiuu! successors and assigns.
"Occupancy Restriction Period"shall mean that pericxl canmencing on the date that the Crst
Unit in the Project is first occupied and ending on the later of(i)the first day on which the Project's
Section 11-243 real property tax benefits are scheduled to expire;or(ii) toe date that the Mortgage
and the FtDC Subordinate Mottpage arc both satisfied.
"P~cmises" shall hnve the meaning set forth is tdc WHEREAS clauses of this Agreement
"Prime Rate" shall mean the prime rate of interest as repotted from day to day in The ~Nali
8trcet loumet as the base rate on coipornte loans pasted by nt least 75%ofthe nation's thirty largest
banks,plus two percent(2~Yn)per annum,or,ifsuch rate is no longer available,the base rate or prime
rate of interost of nny "Money Cenur" bank designated by YIDC in its sole dlscnetion, plus two
percent(24'0) per annum.
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"PcojecP'shall have the meaning set forth in the WHEREAS clause of this Agmement.
"REMIC"shalt have the morning sei forth in the WHEREAS clause of this Agreement.
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"Rent Stabilization"sha11 mean the New York Ciry Rent Stabilization[:sew andanytales and
~n(~lo4~nn~ nrnm~~~mfwl fhrrp~_niinr j;~C~t7a1.^.^ the Re.^.: Stabi!iza!ien Cot?^ for Rent StsLiliztd
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Apardments in New York Ciry,as may be amended from time to time.
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"5ution 11-743" sfiall mean Section 1 t-243 of the New York City Administrauvc Code
(formerly known as I-5!)anal anyrules or icgulutians pmmulgutcd thereunder as may be amended
from time ro rime.
"Section k21-a"shall rncan Scxtion 421-a ofthe New Yock State Rea! Properly Tax Law as
applicable totha Project,any rules or regulations pnomulga[ed+[hereuader,as may be amended from
Umeto tine.
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shall have the maaning set foreh in the WfIECtEAS clauses of this
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"Tenant"shallmeantheindividual(s),whoexecute(s)Welease foraUait,aadwhoseAnnuat
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Inwme, ae certified and verified pNor to initial cecupancy, does not exceed the lesser of(i) two
hundred fifty percent(250%)of Ama Median Gross Income or (ii) seven times the annual rend of
such 'Unit, except that in the case of a Tenant with a Household of tlrcee or more persons, xuch
Annul Income shall not exceed eight times the Annua! rent of such Unit ruttier than seven tittws.
"Unit" shall mean any residential unit in the Project, other than any unit reserved Tor x
superintendent of the Project.
Section 2-General I'rovlsionR
2.1
The Mortgagor shall comply, and cause the Project to comply,x! all times with this
Agreement and the Act, as may be necessary to enforce this Agreement.
2.2
Except by rewon of an involuntary change causal by unforeseen events such as,
without limitation,fire,seizuro, mquisation or condemnation,the Miortgugor shall make no changes
in the amount of comme~+cial, residential and non-residential space, or tha number of tJniu during
the te[m of this Agreement without the consent of HDC.
Section 3Co~qliance with tither Agencies
3.1
ThelNortgagorshaltdoallthingsnecessaryandwithinitsconuoltokeeptheSection
1 t-243 real property tax benefits or Section 421-a c~a1 propetty tux benefits as applicable for the
Project and any permits or agreements with other governmental agencies in gaud stanAing and shall
comply with the requirements with inspect to the Project of such governmental agencies
administering those programs. Any violation of(i)the terms of said Section I t-243 real propercy
taz benefiUSection 421-a real property tax benefit requirements, or(ii) any permits or agreements
with other governmental agencies, may 6e declared un Event of Default under this Agreement.
4.I
The Mortgagor agrees that o:.cupancy mquirements for the Project shall,for the term
of tttis Agreement(w described in Scetion 14 hereof,comply with (i)the applicable provisions of
the Act and (ii)any applicable provisions of federal, stall and local law and regulation.
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4.2
The MoRgagor shall comply with HTX'procedures pertaining ro the marketing at~d
renting of the Units in the Project, including the use of TiDC's forms,for verifying Annual Income
and Household size and otherwise complying with the provisions of this Regulatory Agteemant.
4.3
Each Unit in the Project shall be rented or made available for rental on a continuous
basis to the general public for the term of the Occupancy Restriction Period. The Units shall be
similarly constructed and shall contain living,sleeping,eating,cooking and sanitation facilities for
a single person or family. None of the Units shnii be used on a transient basis or as s hotel, motel,
a
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dorntitory,fraternity or sorority house,rooming house, hospital, nursing home,sanitarium ar Est
home.
4.4 The Mortgagorshait not consent to any sublease or asslgnmant of lease by a Tenant
unless the proposed sublessee a assignee qualifies ns a Tenant at tha wcrimencement of such
sublease cu assigumen4. rrspectivcly.
SesUou S~
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5.1
7'he Mortgagor shall comply with atl procedures ofHIX:concerning thequalification
of Tenants. Priorto occupancy of a Unit,the Mortgagor shall determine whethereuch applicant for
a Unit qualifies ae a Tenant. The Mortgagor shall obtain a certification of Annual Income and
Household size from each applicant fur a Unit along with documentation necessary to verify such
applica~Ys Annunt Income. The Mortgagor shall examine and verify each applicant's ccitiGcation
of AnnurilIncome and Household size in a manner consistent with the verification of Annual Tacoma
under Section 8 of the United States Housing Act of 1937,as amended.
;:
5.2
During theOccupnncyResLictionPeriod,QriorrotheinitialrentalofanyUnitorthe
re-rental ofany Unit after vacancy,the Mortgagor shall famish to HDC the applicant's certification
of Annual Income and kYousehold size and veriticution documentation as may be required by HDC
in order to permit Hf)C to review the qualifications of such applicant in connection with such
proposed rental.
5.3
ff a Tenant in a Unit at any time makes ox is deterntined to have made a false or
fraudulent certafication with regard to HLC's requimments for occupancy of a Unit under this
Agreemenq then M~rtgngor may,or at the xequest of HDC". shall, refuse to offer a lease renewal
and/or commence o Icgu! action to terminate thelease ofsuch Tenant.
Section 6- Rents anti Leaser
6.1 (a)
The Mortgagor shalt establish the lnieial Rant ro be charged for the Units at
initial occupa~~cy of the Project end shall provide a schedule ofsuch rents to HDC for its review and
approval; provided, however.that the average Initial Rentestablished at initial rent-up ofthe roject
for al! Units of a certain Unit siu shall not exceet! the applicable average Initial Rent for such Unit
size set forth in Fachibit B herero unless expressly approved by HDC in its sole and absolute
discretion.
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(b) At initial rent-up ofeucfi Unit,a TenanCshall pay to the Modgagor,in cu~sideration
for occupancy, a rent that shall not exceed the Initial Rent and such rent shall be registered by the
Mortgagor with the govemmenta( agency administeang Rent Stabilization. During the Ckcupency
Restriction Period, upon lease renewal or rerentnl oY'a vacated Unit, a Tenant shall pay to Hfe
Mottgagbr,in consideration for occupancy, a rent that shalt not eacceed she Adjusted kept.
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6.2 (a)
Due to the Project's expected receipt of roal estate tax benefits pursuant ro
Section!i-243, ali Units in the Project ore subject to Rent Stabilization during the period of such
tax benefit. ARer the expiration of Rent Stabilization, if the Ckcupsncy Restriction Period is still
in effect, rentals of vacated Units shall be regulated in a manner consistent with Rent Stabilization
pursuant to a contract bctwcen HDC and the govemmenta! agency administering Rent Stabilization
and consented to by the Mortgagor("Contractual Rent Regulation"). The Mortgagor shall enter into
any agreements with uny agency administering Rent Stabilization necessary to implement such
Contractual Rent Regulation.
(b) 'Che Mongugur shall comply with all app~icuble requirements of any governmental
agency administering Rent Stabiliwtion or Contractual Rent Regulation For so long as required by
Rent Stabilization, Section 11-243 or thrs Agreement; provided, however, nothing in this Section
6 shall be deemed to myuire compliance with tray provision of Rent Stabilization inconsistent with
the requirements of this Agreeuten!.
~..
6.3 (a)
Tha Mortgagor sl~atl use a lease expressly subordinate to the Mortgage in
renting Units ro Tenants.The lease shall comply with alt applicable requirements of New York law
to the extent that the applicable requi~~ements of New York law are not inconsistent with the
irquirements of tins Agreement.
(b) For each Unit covered by this Agreement the Mortgagor shall nse a lease rider set in
twelvaq 2)point type and provided by HDC which rider shall set forth the epplicpble occupmmcy and
rental requirements of Uus Agreement("FIDC Rider"). 1'he HUC Rider shall, among other things,
require a Tenant to mtet HDC eligibility standards in accordance with this Agreement and shall
pernut the Mortgagor to terminate or refuse to re~~ew a TenanPs tease if such Tenant falsely or
fraudulently certifies Annuat Income or Household size or provides false or fraudulent
daiumrnta8on of Annual Income to the Mortgagor at any time. My Lease or other cider for a Unit
rn the Project shall not ca~ntain any provision which conflicts with the terms of this Agreement cmd
the HDC Ridet and such lease or other rider shall not contain language that would permit the
termination of Rent Stabilization or Contractual Kent Rrgulation foe a Unit upon the expiration of
the Project's Section 11-243 benefits(unless such tenninution occurs consistent with the provisions
oCthisAgreement).
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6.4 (a) Upon the expiration of tfSe Occupancy Restriction Period,each Tenant msiding
at such time in a Unit sh~l!remain subject to Rent Stabilization orConUactual Rent Regulation and
shalt be entidrd to and offered continuous lease renewals, at rents not to exceed the Adjusted Rent,
within ilia period of ume to offer Lease renewals pursuant ro Rent Stabilization, for so bag as such
Tenantcontinues to reside in his or her Unit,and provided that such Tenant's right to occupy his or
hee Unit has not been ternunated by a court having judsdictian over such matter.
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(b)' Upon vacancyof a Unitsubsequent to the Occupancy Restriction Period(except fur

a vAcaacyresulungfromabreachofthe"wanantyof6abitability",harassment,construcGveeviction
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or similpr action caused by the Mortgagor), such Unit shall not be myuirecl to be subject to Rent
Stabilization or Contractual Rent Regulation pursuant to dais Agreement,
The Mortgagor shall not retaliate against anyTenunt in the Project who notifies kIDC
b,5
or any other governmental agency of any alleged viotaGon of this Agreement.
Section 7 ana e meat
7.1
The mumiging u$ent, and sub-agent anti the arrangements for maougement of the
Project, including the managamani agreement or management pin~~ and any change in management
or renowals of the management ugreemcnt, shall be subject to the prior written approval of HAC.
The management agreement or management plan shall contain a provision that it is subject ro
termination by the Mortgagor with or without cause and without penalty. In the event HDC
determines that the Protect is not being operatexl Incompliance with this Agreement it may provide
a written demand to cure and a time period within which to cure such violation to the Mortgagor.
If such noncompliance is not cmrd to the satisfaction of HDC within the time period co cure such
noncompliance then HDC may nyuest that the Mortgagor terminate the management agreement or
management plan, upon receipt ofsuch request, the Mortgagor(i)shall immediately terminate the
management agreement or manegemant plan and such management services shall be fully
discontinued within a period of not more than thirty (30) days from the Mortgagor's receipt of
BDC's request, and (ii) sha11 make timely arrangements to be approved in writing by HDC for
cgntinuing proper management of the Project.
..,
8.1
The Mortgagor covenants that it shall nog sell, leatie, sublease, convey, transfer or
otherwise convey theProjector any portion thereof without the prior written consent of HDC. This
covenant shall not be construed to prohibit the Mortgagor from entering into leases with residential,
correme~ial,or other tenants or asers ofthe Project or u portion thereof;provided, however,thatsuch
iea4es shalt(i)for the Units, be consistent wih all applicable provisions ofthis Agreement,and (ii)
not wntain nn option W acquire all or a portion of the Project whi]e this Agitement is in effect.
;.
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8.2
During the pericxl of time that the Mortgage or the HDC Subordinate A~iortgage is
outstanding, the Mortgagor covenants that it shall not incur any Jebt other than that reasonably
necessary for the operazion and maintenance of the Project.
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8.3 The Mortgagor covCnnnts that it shNl not,without the priorwritten consentofHAC,
which shall not be unreasonably withheld:
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(a) (i) ~rrnit the admission into the Mongugor's limited tiabiliry
company of additional nianugi~ig ni~ii~lic~:~ (wiiiiuut regard iv percentage interests]
or investor members(if such investor members will hold a twenty pec~ent(20%)or
greater interest in the Mortgagor)or(ii)if a managing member ofthe Mortgagor is
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apertncrxhiporlimitedliebilirycompany,pennittheadmissionintosuchpartnership
or llmfted Hnbfliry wmpnny of additional general partner or managing members
(without regard m percenti~ge interesq or limited partners or investor members (if
such limited partners or inventor members will hold a twenty percent (203'n) or
greater interest in such p~utnershi~ or limited liability cowpony);
(bl (i) perntit the withdrawal of existing managing members from the
Mortgagor's limited I ii~biliry company or(li)if a managing member o[the Mortgagor
is a partnership or limited liability company, perrnit the withdrawal from such
partnership or limped liability company of existing general partners or managing
members;
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(c) permit the acquisition by (i) any investor member ofthe Mortgagor,
or (ii) any investor member of a managing member of the Mortgagor (if such
managing member is u limited liability company) if such investor member has not
been previously approved by HDC,of an additional interest in the Mortgagor whick~
would result in such investor member holding an intemst oftwenty percent(20k)or
greater in the Mortgagor or its managing member, or
(d) pernilt eery change of more than twenty percent (20R'o) in the
ownership ~nf shares of a corporate managing member of the Mortgagor (or if a
'managing member ofthe Mortgagor is apartnership orlimiteci liabillry company with
a corporate general partner or managing member,of such corporate general partner
or managing member]ofsuch partnership or limited liability company)oracorporate
investor member of the Mortgagor (if such investor member holds an interest of
twenty percent(20'%)or greater in the Mortgagor).
A change in managing member or in ownership of shares in a corEwrace managing member
by operation of law or as a result of death or disability of such member shalt not be subject to this
subsection. Notwithstanding the provisions ofSecticns 83(b)and 8.3(c) hereof, member interests
of the Mortgagor orownership ofshares ofa corporate managing member ofthe Mortgagor may be
transferred between previously approveA ma~iaging mamUei~ oc sha~tiholdres or to direct or indirect
wholly owned affiliates or subsidiaries of managing members or shazeholdcrs and notice thereof
shall be given to HDC.
~;_
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Section 9- Aiatributions
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9.1
Upon writtennoticefromHDCoftheoccure~nceof(i)anEventofQefaultunderthis
Agreement, or (ii) a material uncure,~3 default under any otfier agreement between HDC and the
Mortgagor with respect to tht Loan or the HDCI Additional Loan, the Mortgagor shalt not make tray
disiributicn of any assets of, ur any incoiaa oEw~y kind Goan, tae F,ojwi .o its ~ueuitiei~ until rile
cure ofsuch Event of Default or default has been detern~ined by HDC:.
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Secgon 10 - Lt~poMlac Reaulrements
10.1 TheMortgagorshallfurnishanyreportsorinformntionreasonablyrequestcdbyHDC,
in a form satisfactory to HDC,with respect to the construction, marketing, xcupancy,maintenance
xnd operation o[ the Projut. Financial reports, records and annual audits shall be prepazed xnd
maintained in accordance with Generally Accepted Accounting Principles; provided, however, to
the extentand in a mannerapproved by HDC in its sole discretion such financial reports,records and
annual audits mny be modified in accordance with Government Auditing Standards as set forth by
the Comptroller General of the United States.
l0.2 The Mongugor shall maintain and keep current all books, documents, plans and
records concerning the Project. Such books, documents, plans and records shall be kept (i) for a
minimum of six(6)years aRer the expiration of the Occupancy Restriction Period far those books,
documents, pla~~s and records pertaining to the rental and occupancy requirements for each Unit in
the Project as well as the rent roll For all Units in the Project and (ii)for a minimum ofsix (6) years
after the end of the fiscal year or ca}endar year, ns applicable, for which such books, documents,
plans end records were compiled, for all other documents. Upon reasonable notice, HLx may,
during icasonable business hours,(i)audit and examine these books,documents, plans and records
and (ii) inspect the Units, buildings, grounds,equipment and offices ofthe Project.
I0.3 To the extent not prohibited by law, the 1v~ortgago~ may inspect HDC's books and
rtcotds relative to the Project upon reasonable notice during HDC's business hour.
10.4 9'he Mortgagor covenants and agrees to notify HDC promptly if the Martgegor
discovers any material noncompliance with any restriction or covenant in tlds Agreement,
Sectlon 11 -Enforcement
ll.l (a)
11Don violation ofsuiy cf the provisions of this Agreement by the Mortgagor,
HDI: may give written notice thereof. If, after such written notice is given, such violation is not
cumd or the Ivtongagor has not commenced to cure such viola[ion to the reasonable satisfaction of
HDC within thirty(30)tluys attar [ire dale such nutic:e is mailed ur given or within such further time
period t~s HDC in its sole discretion may pernilt,HDC,without further notice, may declare,and such
declaration shall constitute,an "EvenrofDefault"under dais Agreementeffective on die dnteofsuch
written notice of violation.
(b) Upon an Event of Default. HDC may take one, all or any combination of the
following co~uses of action:
(i)
apply to any court for:
A.
specitic performance of the Agreement;
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an injunction against any violation of the Agreement;
C,
appointment of HDC or a receiver to trilcc possession

ofand operate the eject,collect All rents,and pay al
necessary costs of the Project in accordance with the
terms of this Agreement and nny other document
between the N[ortgagor and HDC pertaining to the
Loan or the HDL'Additional Lean(including, without
]imitaCion, the Mortgage, the Martgage Note, the
HDC Subordinate Mortgage, and the HDC
Subordinate Note) until the Mortgagor has cued the
violation and given satisfactory evidence it can
operate the Project in compliance with this
Agreement
D.
removal of any managing member responsible for the

violation; or
fi,
anyotherorfurtherreliePwhichmaybeappropriateor
desirable in law or inequity.
(ii)
cure such violation ttnd charge the Mortgagor for any costs and
expenses made or incurced to remedy such violation plus interest on RDC's out-otpocket expenditures fronti the dale on which such expenditures are made atthe Prime
Rate.
(iii) rent any unleased or vacant Unit in order to comply with the
provisions of this Agreement or prohibit the occupancy of any unoccupied Unit in
order to comply with the provisions of this Agreement.
---- -- - -
(iv) prohibit distributions to members of the Mortgagor and/or take any

action to seek restitution to the Project account for any distributions made in
violation of Section 9 of:his Agreement provided such distribution was made after
notice was given pwsuant to Section 11.1(a) hereof
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(v)
dee;lare an event of default under the Mortgage and/or the ADC
Subordinate Mortgage anti pursue any remedies thereunder including commencing
a foreclosure of the Mortgage and/or the HDC Subordinate Mortgage.
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(c)
The Mortgagor agrees to pay all reasonable attorney's and expert's fees, coutt and
diSiuVe~'y eiut~ iu~3uJiug w~i~ uicuifectiun turd [clata~3 expen~ra of HDC,ie~ addition io any ocher
damage or relief that may be incurred by HDC or awarded by n court in connection with any
proceeding or action brought or lateen by HI7C to enforce the terms of this. Agreement. The
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ivtortgagor shall pay such amount regardless of whether a legal action is finally decided by a coucr
provided, however, that the Mortgagor shall not be obligated to pny nny attorney's fees, costs and
expenses of HDC attributable to any action or proceeding brought by HDC in bxd faith or if
Mortgagor subsuuttially prevails in a legal action. If the Mortgagor fails to pAy all or any portion of
the amounts due under this Section 11 within ten(I0)days after demand by HDC,such amount shall
bear interest at the Prime Rate from the date of demand until paid.
11.2 HpC will not seek any personal judgment against the Mortgagor or any of the
Mortgagor's members; provided, however, HI?C may seek a personal judgment against the
Mortgagor and its members in order to enforce the obligations or liabilities of the Mortgagor and i[s
present or future: members pursuant to Sections 11.t(b)(ii), i l.l(b)(iv) and 11.1(c) hereof,or to the
extent of, any deficiency,loss,damage ornon-compliance with this Agreement ns u result, nr arising
aut,of(i)fraud,(ii)tnisnppropriution or diversion of funds or other property, or(iii) damage to the
Project intentionally inflicted by the Mortgagor or any of its members agents, nr employees. HDC
agrees that it shut! seek ro collect any personal judgment obtained agtunst the Mongngor's investor
members only fxom such investor member(a)capital conuabutions (i) actually paid in at the time
HllC seeks a judgment and (ii) to be paid pursuant to the Mottgagor's operating agreement,
provi.dcd, however, HDC shall only be enti8ed ro obtain to be paid capital on the date scheduled for
such payment under the Mortgagor's operati ng agreement,and(b)disvibutions previously made to
such invesaor members. The provisions of this Section 11.2 shall not affect the validity or
enforceobllity of any guaranty or indemni[y agreement made in connection with the HDC
Commiunent or the L,onn.
11.3 All rights and remedies of HT~C shall be cumulative and may be exercised singularly
or eoncurtently,at HDC's option,and the exercise or enforcement of any one such tight or n:mrdy
shalineitherbeaconditiontonorbsrtheexerciseofenforcementofanyotherrightorremedy. The
enumeration of rights anti remedies herein shall not preclude the enforcement or exercise by HDC
of any other rights anti remedies avei(ablc to HDC. Any waiver by HI)C of any violation of the
provisions hereof or Event of Default hereunder shall be made pursuant to the procedures set forth
in Section 13.1 hereof and shall not be deemed a waiver of a preceding, ciurent or subsequent
violeuion or Event of Default, whed3er of a same, similar or different nature.
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I(,4 The Mortgage and the HDC Subordinate Mortgage shall provide that an Event of
Default under this Agreement shall be a default under the Mortgage and the HDC Subordinate
Mortgage,respectively.
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Secilon 12~q~~~~Onpgrtunity
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12.1 The Mortgagor shall use rtasonable efforts to ensure that businesses owned by
minority groups, which traditionnliy have been disadvantaged, and woman are afforded equal
oppartUnityt6partlClpntcilir311yileVclUNiueiitnri~wu~t~uc[ic~ne:untraclWeulereciintoinconnection
with the t'roject,
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Section 13 ~ Wafver. Amendment end Tra~aPers
13.I Eitherparty'sdelayorfailureroactorgivenoticeshallnotconstitutcawaiverofany
provision of this Agreement and shell not preclude the enforcement of any of HDC's rights or
remedies. No uct or omission by either party, otl~r t}wn a writing signed by it waiving a b~cxch by
the other party, shall constitute a waiver thereof.
13.2 This Agreement may not be altered, modified or amended except by an instrument
in recordable, form signed by die Mortgagor and HDC. 7'he Mortgagor shall agree to amend this
Agreement if such amendments are mquirect by SONYMA or REMIC in order for HDC m obwin
mortgage insurance for the Mottgagr,. In addition, if, after the execution hereof, there arc
amendments to (i) the Act or (li) Rent Stabilization, or any rules or zcgulations promulgated
thereunder, and ifsuch amendments arc applicable to the Project and inconsistent with one or more
of the provisions of this Agreement as determined by HDC,then upon written request of ~IDC,this
Agreement shall be modified in u separate instrument in recordable form signed by the Mortgagor
and HDC to the extent necessary ro conform it to such amendment.
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Section i4- Term of Ays~eemeny G_'~nveer~l^n

`'i
14.1 TheprovisionsofthisAgreementshallremninineffectforthetermoftheOccupancy
Restriction Period, provided, however, thx provisions of this Agreement governing the rental of
Units subsequent ro tho Occupancy Restriction Period and the enforcement thereof,shall retnain in
effect for as long as may be necessary to preserve and enforce such provisions.
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14.2 Upon request of the Morigagor, HDC shall provide the Mortgagor with a release is
recordable form oP this Agreement upon the expiration of the restricdoas cancained herein.
14.3 The Mortgagor may not convert the Project to cooperative or condominium
ownership during the Occupancy ReFtriction Period, Upon termination ofthe Occupancy Restriction
Period, rmy conversion of the floject to cooperative or condominium ownership shall not be made
pursuantto an eviciio~a plan as defined by Section 352~eeee ofthe New York State Gonenil Business
Luw,as maybe amended.
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15.1 This Agreemenx shall hied the Mortgagor and HDC, their respective successors,
grunYees,lessees and assigns.
Section 16$gyg~gJJ~y
16.5 Tl~e invati~ity ut any clause or provision ui clue Agmsment hall not affect the
validity of the remainuag portions ofthe Agrcemonc,
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Sectlon 17~Mlon and Conxents
17.1 HDC snd the Mortgagor shall use rcusonahle promptness, reasonable diligence,
reasonable judgment anS reasonable discretion in exercising any duty or discretion, providing any
consent or approval, or mnkinE any determination rcquircd by this Agreement. HDC and the
Mortgagor shall both use their reasonable cfforls to eff'ectaate the purposes of this Agreement.
Section ISGovenaots stun w~ e band
18.1 TY~is Agreemettt shall be recorded uguim~t the Premises in the County in which the
Premises arc Iceated. The I'vfortgagor anti HDC agru> that, during the term hereof, all provisions
herein shall run with the Prmises and be enfoncuble by HDC and its successors and assigns, and
again,t the Mortgagor and ics successors and assigns, HDC and the Mortgu~or hereby declare their
underseanding and intentthet the burden of the covenants set forth herein touch nndconcevn the land
in that the Tvtortgagor's legal interest in the Project is rendered less valuable thereby, HDC and the
Mortgagor hereby further declare their understanding and intent that the benefit ofsuch covenants
touch and concern the land by enhancing and increasing the enjoyment and use of the Project by
persons for whom the ordinsuy vperutions of privttte enterprise cannot provide an adequate supply
of safe, sanitary and affordable dwelling accommodations, the intended beneGcinries of such
covenants. During the terrn of this Agreement, the covenants of the Mortgagor set forth herein arc
enforceable by HDC us a contract beneGciury whether or not the Mortgagor is or remains indebted
to HDC.
SecUoa 19 ~ otices
19.1 Any notice, demand, direction, request or other instn~ment authorized or required
hereunder to be g?van ro or filed with the pnrlies hereto shall be deemed ro have been sufficiently
given or filed for all purposes hereof if and when sent by certified mail,return receipt requested, by
telceopy with receipt thereof,or by hand delivery at the addresses stated above or such other address
with respect ro any pfuYy as such party shill so notify the other in writing.
SecUon20- Forum
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20.1 The Mortgagor and HDC unconditionally and irrevocably agirz thattNis Agreement
shall be governed by and construed in accordance with the applicable laws of the State ofivew York
and the parties hereto unconditionally xnd irrevocably accept the nonexclusive jurisdiction of the
courts of the State of New York, waive any objection to the bringing of action in suchjurisdietion,
and consent to venue in any scale or Federal court located in the County of New York. The parties
agree that service of process may be by hand or certified mail,return receipt requested. Mortgagor's
designated agent for service of process shall be Steven Gattano and the location for service of
process shall be 1 S I3ramblebush Road, Crown-on-tiudwn, New `lak 10320, ur thu than cuneat
address of the Mortgagor or such other address permitted by law or as may be agrcEd to in writing
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by HDC and HDC's designated ugeut for service of proccss shall be its t3encral Counscl et its
corporate offices.
~NOFVFTHSX TEXT- SIONATUR&.S SBT ~FORTN ON NBXTPACfiJ
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16
tN WITNESS WHEftEOE,the parties hereto by theirduly authorized agents have executed
this ABeement on the date fast heroipabove written.
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STATE OF NEW YORK
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On the'~~ day of ~~~'~

,200 ,before, me,the undersigned, n notary public in
and for said state, personally appeared STEVEN G.+.ETANO personally known to me or provui
to me on the basis ofsatisfactory cvidance to be the individuul(s)whose names)is(are)subscriber(
to the within instrument and acknowledged tome that he/she/they executed the same inhis/her/their
capacity(ies),and that by hislhar/theirsignature(s)onthe instmment,the individun](s),ortheperson
on 6ehaif of which tha individwil(s) actui, executed the insWment.
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pRACF SACHI ONAOA
No:ary PubPa St..ln o(tJew Yotk
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STATE OFN~WXORK'
Qualiliatl
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~~~~York
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Commiselon F~Wires Aprli 7,200(
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CUYJNTY OF NEW YORK )
On the ~~day of
,2000, before me, the undersigned,a notary public in
and for said state, personally appeareA EDWARD SpLA1V personally known to ma or prover( to
me on (tie basis ofsatisfacrory evidence ro be the individuals) whose nacne(s) is (are)subscribed
to Use within instrument and ftcknowledgcd to methat he/she/they executed the same inhis/her/their
capacity(ies),and that byhis/her/lheiasiennture(s)onthe instnament,theindividual(s),orthe person
on behalfof which the individuals) acted, executed the instrument.
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M~LISSA00.PKAN
NoteryPubllo,3t9180iNewVofk
No.02DA601492p
Quelllled in New York CauMy
Commheeion Ezpros 0p~. 70. 2000
.r---PubllC
Commissionaxpires:
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ParseciLot 44
ALL that certain plot, piece or purcei ofland,situate, lying and being in the Borough of Manhattan,
County, City and State of New York, bounded and described us follows:
'
BEGINNING at a point on the westerly side of 8'" Avenue, distani 50 feet 8.1/2 inches northerly
from thecon~erformedbytheintersectionofthewesterlysideofBwAvenuewiththenortherlyside
of t ll'" Street, op~oeite a party wall;
RiTNNING THENCE westerly parapet with 111'^ Sveet and part ofthe wny t}uaugh a party welt,
100 feet;
TFIL+NCE northarly peraltol with 8~' Avenue 24 feet 1 t -t/4 inches;
-- -
THENCE easte~9y again parallel with 111'" Street and part ofthe way ttuough another party wall,
100 feet to the westerly side of8'" Avenue; and
-
THENCE southerly along the westerly side of8'"Avenue,24 feet t 1-1/4 inches to the point orplace
ofBEGINNING.
_ ._
Parcel dl -Lot A5
ALL that certain plot, piece or parcel ofland,situate, lying and being in the Borough of Manhattan,
County, City and State ofNew York, bounded and described as follows:
$EGINNING at a point on the westerly side of 8'" Avenue, distant 75 feet 7-3/4 inches northerly
from the comer formedby the intersection ofsaidwasterly side of8~'Avenue with the northerly side
of West 1 I t'" Stree4;
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RiJNNING THENCE westerly, parnllei with tha northerly side of West 111'" Street and pert ofUte
distance through a paAy wall,]00 feet;
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THENCE northerly, parallel with the westerly side of 8'^ Avenue,25 feet6 inches;
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THENCE easterly again parallel with the northerly side of West 111'" Street, 100 feet ro said
westerly side of8'" Avenut,and
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THENCE southerly,along said westerly side of8'" Avenue,25 feeF6 inches to fhepointor placeof
BEGINNING.
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Parcel III - Lot 46

ALL that certain plot, piece or parcel ofland,situate, tying and being in tha Borough ofManhattan,
County, City and State ofNew York, bounded and desczibed as follows:
BEGI]VNING at a point on the westerly side of81h Avenue,distant 75 feet and 8-t/4 inches southerly
from the comer fonntd by the intersection ofthe raid westerly side of8'^ Avenue with the southerly
side of t 12'" Street;
RUNNCNG THENCE southerly along side westerly side of8'^ Avenue,24 feet t0-1/4 inches to the
northerly face of the northerly wall ofthe building erected on the premises adjoining those hereby
described on Use south;
RUNNING THENCE westerly along the northerly face ofsaid wall eod on a line in prolongation
thereof, 100 feet;
THENCE northerly and parallel with the said westerly side of8'" Avenue,24 feet and 10-1/4inches;
THHNCE easterly pazatlel with the southerly side oft 12th Street and part ofthe distance through
a pazty wa11,100 feet to the wescerly aide of 8'^ Avenue to the point or place oFBE~3INNING.
Parcel IV - Lat 48
ALL that certain plot, piece or parcel ofland,situate,lying and being in the Borough of Manhattan,
County,City and State ofNew York, bounded and described as follows:
BEGINNING at a point on the westerly side of 8~' Avenue distant 25 feet 8-1/4 inches southerly
from the corner formed by the intersection ofthe westerly side of8"' Avenuo and Uie southerly side
of 112'" Sheet; and
~,,
RiJNNINGTHENCEwesterlyandparallelwith112' Streetandpartothedistancethroughaparty
wall 100 feet;
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THENCE southerly and pazaltel with 8~' Avenue 25 feet;
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TRENCH easterly and parallel with said 112"Street and partofthe distant through a party wa11100
fcet to the westerly side of8'" Avenue; and
THENCE northerly along said westerly side of 8ih Aveaue 25 feet to the point and place of
BEGINNING.
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Parcel V -Lot 49
ALL that certaan plot, piece or parcel ofland,situate,lying and being in the Borough
ofManhutlan,
County,City and State ofNew York, bounded and described as follows:
BEGINNING at a pointon the corner formed by the intaraection ofthe southerly aids of112"
Street
with We westerly aide of L+ighth Avenue;
RL7NNING TfiL~NCE westerly along the southerly side of I t2'^ Street, 100 feet;
T7~IENCE southerly and parallel with Eight Avenue,25 feet 8-1/4 inches;
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THBNCH easterly and parnllel with the said squ~herly side of 112'" Street, 100 feat and paR the
of
way thraygh n party wall4o the wesYarly side of Eight Avenue;
TfIENCE northerly along the vaid westerty side ofE1ght Avenue,25 feet 8-1/4 inches to the
point
erglacenfBEGINNI~tG.
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DOCUMENT 8
NYC ADMINISTRATIVE CODE I1-243
Page 1 of 50
Lexis Advance"'
Research
Document:NYC Administrative Code 11-243
.~:.
Copy Citation
K:r r Current through October J_O15 '^'"'*x
IVew York City Municipal Code, Charter and Rules
Code
Administrative Code of the City of PJew York
Finance
CHARGES
TAXATION
Flew York City Administrative

Yitle 11 Taxation and
CHAPTER 2 REAL Pf80PERTY ASSESSP9EINT, TAXAYIOfV .4iVD

SUBCHAPTER 2 EXEP9PTIONS FROM REAL PROPERTY
PART 1 EXEMPTIONS POR CERTAIN RESIDEiVTIAL PROPERTY
11-243 Reextension of exemption and tax abatement in

regard to improvements of substandard dwellings.
a. As used in this section, the following terms shall have the following meanings:
1. "Alteration" and "improvement': a physical change in an existing dwelling other
than painting, ordinary repairs, normal replacement of maintenance items, provided,
however, that ordinary repairs and normal replacement of maintenance items, as
defined by rules adopted by the department of housing preservation and development
pursuant to subdivision m of this section, shall be eligible for tax exemption and tax
abatement under this section provided that repairs and maintenance items:
(1) were started and completed within atwelve-month period,
(2) were made to any common area of the dwelling premises concurrently with a
major capital improvement thereto, as defined by rules adopted by the
department of housing preservation and development pursuant to subdivision m
of this section, and
(3) require the issuance of a permit for at least one item thereof by any city
agency, and
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(4) the amount of money expended thereon shall not exceed two times the
amount expended on the major capital improvement performed concurrently
therewith.
"Alteration" and "improvement" shall also mean "an abatement" of lead-based
paint hazards, as defined in part 745 of title forty of the code of federal
regulations or any successor regulations in any existing dwelling including any
common areas, and shall include an "inspection" and "risk assessment' for lead based paint hazards, as defined in such part, in a dwelling unit whether such unit
is vacant or occupied but shall not include any work performed to comply with a
notice of violation issued for a violation of article fourteen of subchapter two of
chapter two of title 27 of the administrative code. For purposes of this paragraph,
the term, "targeted area" shall mean the geographical area of New York city that
is determined by the department of health and mental hygiene to have high rates
of children with environmental intervention blood lead levels. The department of
housing preservation and development shall establish two schedules of certified
reasonable costs for items that are included in an abatement of lead-based paint
hazards, one covering such abatement that is performed in an eligible dwelling
unit or common area located in the targeted area, and one covering such
abatement that is performed in an eligible dwelling unit or common area that is
not located in the targeted area. The first such schedules shall be promulgated by
the department of housing preservation and development within 180 days of the
effective date of this local law and shall be used for any such abatements that are
commenced on or after August 2, 2004. Such schedules shall be reviewed by such
department biennially following their effective dates and amended as necessary.
Notwithstanding any other provision of law or rule, an owner who performs an
abatement of lead-based paint hazards pursuant to this paragraph shall not be
required to comply with subdivision (y) of this section which provides for filing of
a notice of intent form prior to the commencement of work, and no additional fee
or penalty shall be due and owing the department at the time of issuance of a
certificate of eligibility and reasonable cost for failure to file such notice of intent.
2. "Existing dwelling": except as hereinafter provided in subdivision d of this section,
a class A multiple dwelling or a building consisting of one or two dwelling units over
space used for commercial occupancy in existence prior to the commencement of
alterations for which tax exemption and abatement is claimed under the terms of this
section and for which a valuation appears on the annual record of assessed valuation
of the city for the fiscal year immediately preceding the commencement of such
alterations and improvements.
3: "Start"an alteration or improvement: begin any physical operationundertakerrfor
the purpose of making alterations or improvements to an existing dwelling.
4. "Complete" an alteration or improvement: conclude or terminate any physical
operation such as is referred to in the preceding paragraph, to an extent or degree
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which renders such building capable of use for the purpose for which the
improvements or alterations were intended.
5. "Multiple dwelling": multiple dwellings as that term is defined in section four of the
multiple dwelling law.
6. "Moderate rehabilitation": shall mean a scope of work which
(a) includes a building-wide replacement of a major component of one of the
following systems:
(1) Elevator
(2) Heating
(3) Plumbing
(4) Wiring
(5) Window; and
(b) has a certified reasonable cost of not less than twenty-five hundred dollars,
exclusive of any certified reasonable cost for ordinary repairs, for each dwelling
unit in existence at the commencement of the rehabilitation; except that the
department of housing preservation and development may establish a minimum
certified reasonable cost to be greater than twenty-five hundred dollars per
dwelling unit pursuant to subdivision m of this section.
7. "Substantially occupied": shall mean an occupancy of not less than sixty percent of
all dwelling units immediately prior and during rehabilitation, except that the
department of housing preservation and development may establish higher
percentages of occupancy pursuant to subdivision m of this section.
8. "Private dwelling" shall mean any building or structure designed and occupied for
residential purposes by not more than two families. Private dwellings shall also be
deemed to include a series of one-family ortwo-family dwelling units each of which
faces or is accessible to a legal street or public thoroughfare, if each such dwelling
unit is equipped as a separate dwelling unit with ail essential services, and if each
such unit is arranged so that it may be approved as a legal one-family or two-family
dwelling.
b. Subject to the limitations provided in subdivision d of this section and the restrictions
in this section on conversion of buildings used in whole or in part for single room
occupancy, any increase in the assessed valuation of real property shall be exempt from
taxation for local purposes to the extent such increase results from the reasonable cost
of: (1) the conversion of a class B multiple dwelling to a class A multiple dwelling except
insofar as the gross cubic content of such building is increased thereby; or (2) the
conversion of any nonresidential building or structure situated in the county of New York
to a class A multiple dwelling except insofar as the gross cubic content of such building is
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increased; or (3) the conversion of any nonresidential building or structure situated in the
counties of Bronx, Kings, Queens or Richmond to a class A multiple dwelling except
insofar as the gross cubic content of such building or structure is increased thereby; or
(4)
alterations or improvements to the exterior of an otherwise eligible building or structure
visible from a public street pursuant to a permit issued by the landmarks commission with
respect to a designated historic or landmark site or structure; or (5) alterations or
improvements constituting a moderate rehabilitation of a substantially occupied class A
multiple dwelling except insofar as the gross cubic content of such building or structure is
increased thereby; or (6) alterations or improvements to an otherwise eligible building or
structure commenced after January first, nineteen hundred eighty designed to conserve
the use of fuel, electricity or other energy sources or to reduce demand for electricity,
including the installation of meters for purposes of measuring the amount of electricity
consumed for each dwelling unit, and conversions of direct metering to a system that
includes a master meter and submeters in any cooperative, condominium, or housing
development fund company organized under article
eleven of the private housing finance law; or (7) alterations or improvements to existing
dwellings to eliminate existing unhealthy or dangerous conditions in any such existing
dwelling or replace inadequate and obsolete sanitary facilities in any such existing
dwelling, any of which represents fire or health hazards, including as improvements
asbestos abatement to the extent such asbestos abatement is required by federal, state
or local law, except insofar as the gross cubic content of such existing dwelling is
increased thereby; or (8) conversion of residential units qualified for the protection of
article seven-C of the multiple dwelling law in buildings or portions thereof registered with
the New York city loft board as interim multiple dwellings pursuant to such article to units
which are in compliance with the standards of safety and fire protection set forth in article
seven-B of the multiple dwelling law or to units which have a certificate of occupancy as
class A multiple dwellings; or (9)
alterations or improvements commenced on or after September first, nineteen hundred
eighty-seven constituting a substantial rehabilitation of a class A multiple dwelling, or a
conversion of a building or structure into a class A multiple dwelling, as part of a program
to provide housing for low and moderate income households as defined by the
department of housing preservation and development pursuant to the rules and
regulations promulgated pursuant to subdivision m of this section, provided that such
alterations or improvements or conversions shall be aided by a grant, loan or subsidy
from any federal, state or local agency or instrumentality, including, in the discretion of
the department of housing preservation and development, a subsidy in the form of a
- below market-sale-from the city of New-York;-or (10) alterations or improvementstoany
private dwelling or conversion of any private dwelling to a multiple dwelling or conversion
of any multiple dwelling to a private dwelling, provided that such
alterations, improvements or conversions are part of a project that has applied for or is
receiving benefits pursuant to this section and shall be aided by a grant, loan or subsidy
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from any federal, state or local agency or instrumentality. Such conversions, alterations
or improvements shall be completed within thirty months after the date on which same
shall be started except that such thirty month limitation shall not apply to conversions of
residential units which are registered with the loft board in accordance with article
seven-C of the multiple dwelling law pursuant to paragraph eight of this subdivision.
Notwithstanding the foregoing, asixty-month period for completion shall be available for
alterations or improvements undertaken by a housing development fund company
organized pursuant to article eleven of the private housing finance law, which are carried
out with the substantial assistance of grants, loans or subsidies from any federal, state or
local governmental agency or instrumentality or
which are carried out in a property transferred from the city of New York if alterations and
improvements are completed within seven years after the date of transfer. In addition,
the department of housing preservation and development may grant an extension of the
period of completion for any project carried out with the substantial assistance of grants,
loans or subsidies from any federal, state or Iocal governmental agency or
instrumentality, if such alterations, improvements or conversions are completed within
sixty months from commencement of construction. Provided, further, that such
conversions, alterations or improvements shall in any event be completed prior to June
thirtieth, two thousand fifteen. Exemption for conversions, alterations or improvements
pursuant to paragraph one, two, three, four, six, seven, eight or ten of this subdivision
shall continue for a period not to exceed fourteen years and begin no sooner than the first
tax period immediately following the completion of such conversions,
alterations or improvements. Exemption for alterations or improvements pursuant to
paragraph five or nine of this subdivision shall continue for a period not to exceed thirtyfour years and shall begin no sooner than the first tax period immediately following the
completion of such alterations or improvements. Such exemption shall be equal to the
increase in the valuation, which is subject to exemption in full or proportionally under this
subdivision for ten or thirty years, whichever is applicable. After such period of time, the
amount of such exempted assessed valuation of such improvements shall be reduced by
twenty percent in each succeeding year until the assessed value of the improvements is
fully taxable. Provided, however, exemption for any conversions, alterations or
improvements, which are aided by a loan or grant under article eight, eight-A, eleven,
twelve, fifteen, or twenty-two of the private housing finance law, section six hundred
ninety-six-a or section ninety-nine-h of the general municipal
law, or section three hundred twelve of the housing act of nineteen hundred sixty-four
(42 U.S.C.A. 1452b), or the Cranston-Gonzalez national affordable housing act,(42
U.S.C.A. 12701 et seq.), or started after July first, nineteen hundred eighty-three by a
housing development fund company organized pursuant to article eleven of the private
housing finance law which are carried out with the substantial assistance of grants, loans
or subsidies from any federal, state or local governmental agency or instrumentality or
which are carried out in a property transferred from the city of New York and where
alterations and improvements are completed within seven years after the date of transfer
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may commence at the beginning of any tax period subsequent to the start of such
conversions, alterations or improvements and prior to the completion of such conversions,
alterations or improvements. The assessed valuation of the land occupied by such
dwelling and any increase in assessed valuation resulting from conversions,
alterations, or improvements other than those made pursuant to this section shall not be
affected by the provisions of this section.
b-1. Notwithstanding the provisions of subdivision b of this section, alterations,
improvements or conversions of any building or structure that are eligible for benefits
pursuant to subdivision b of this section except insofar as the gross cubic content of such
building or structure is increased thereby shall be eligible for such benefits insofar as the
gross cubic content of such building or structure is increased thereby provided that:
(1) for all tax lots now existing or hereafter created, at least fifty percent of the floor
area of the completed building or structure consists of the pre-existing building or
structure that was converted, altered or improved in accordance with subdivision b of
this section, and
(2) for tax lots now existing or hereafter created within the following area in the
borough of Manhattan, such conversions, alterations or improvements are aided by a
grant, loan or subsidy from any federal, state or local agency or instrumentality:
beginning at the intersection of the United States pierhead line in the Hudson river
and the center line of Chambers street extended, thence easterly to the center line of
Chambers street and continuing along the center line of Chambers street to the
center line of Centre street, thence southerly along the center line of Centre street to
the center line of the Brooklyn Bridge to the intersection of the Brooklyn Bridge and
the United States pierhead line in the East river, thence northerly along the United
States pierhead line in the East river to the intersection of the United States pierhead
line in the East river and the center line of one hundred tenth street extended, thence
westerly to the center line of one hundred tenth street and continuing along the
center line of one hundred tenth street to its westerly terminus, thence westerly to
the intersection of the center line of one hundred tenth street extended and the
United States pierhead line in the Hudson river, thence southerly along the United
States pierhead line in the Hudson river to the point of beginning.
(3) For purposes of this subdivision, "floor area" shall mean the horizontal areas of
the several floors or any portion thereof of a dwelling or dwellings and accessory
structures on a lot measured from the exterior faces of exterior walls or from the
center line of party walls.
(4) Nothing ~n thissubdivisionshall be construed to provide tax abatement benefits
pursuant to subdivision c of this section for the costs attributable to the increased
cubic content in any such building or structure.
c.
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(1) Except as provided in paragraphs two, three and four of this subdivision, the taxes
upon any real property, including the land, may be abated each year for a period of
not more than twenty years by an amount no greater than eight and one-third per
centum of the reasonable cost of eligible conversions, alterations or improvements
provided in paragraphs one through eight and paragraph ten of subdivision b of this
section provided that the abatement in taxes in any consecutive twelve-month period
shall in no event exceed the amount of taxes payable in such twelve-month period;
and provided further that alterations or improvements pursuant to paragraph four of
subdivision b of this section shall only receive the benefits of this section if
construction commenced after January first, nineteen hundred seventy-eight and that
in no event shall the aggregate abatement exceed ninety per centum of the
reasonable cost of conversions, alterations or improvements provided in paragraphs
one, three, four, six, seven, and ten of subdivision b of this section, or exceed fifty
per centum of the reasonable cost of conversions pursuant to paragraph one of
subdivision b of this section if construction commenced after January first, nineteen
hundred eight-two*~11 ~ and if such conversions are situated on any tax lots
bordering on, or south of, ninety-sixth street in the county of New York to the extent
such abatement is not otherwise restricted herein, or exceed fifty per centum of the
reasonable cost of conversions pursuant to paragraphs two and eight of subdivision b
of this section, or exceed one hundred per centum of the reasonable cost of
alterations or improvements pursuant to paragraph five of subdivision b of this
section provided that where alterations or improvements pursuant to paragraphs four
and six of subdivision b of this section are done in conjunction with a conversion
pursuant to paragraph two of subdivision b of this section, the aggregate abatement
shall not exceed fifty per centum of the reasonable cost. Notwithstanding the
foregoing, the taxes upon real property, including the land may be abated for a period
of not more than twenty years at eight and one-third per centum of the reasonable
cost of conversion pursuant to paragraph two of subdivision b of this section where
construction actually commenced in good faith prior to July first, nineteen hundred
eighty pursuant to an alteration permit issued by the department of buildings prior to
July first, nineteen hundred eighty provided that the aggregate abatement shall not
exceed ninety per centum of the reasonable cost thereof and provided further that in
no event shall the abatement in taxes in any twelve-month period exceed the amount
of taxes payable in such twelve-month period. In no event, however, shall the
aggregate abatement for conversions, alterations or improvements pursuant to
subdivision b of this section exceed such dollar limit per existing class A dwelling unit
or additional unit created by conversion to a class A multiple dwelling as may be
established pursuant to rules and regulations promulgated by the department of
housing preservation and development pursuant to subdivision m of this section. Only
those itemsbf work set foith in the itemized cost breakdown scfiedule contained in'
rules and regulations promulgated by the department of housing preservation and
development pursuant to subdivision m of this section shall be eligible for tax
abatement. Such abatement shall commence on the later of July first, nineteen
hundred seventy-eight or the first day of the first tax quarter following the completion
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of such construction and the filing for benefits as provided in subdivision h of this
section except that such period of abatement may commence on the later of the first
day of the first tax quarter following commencement of any conversion, alteration or
improvement or (i) July first, nineteen hundred seventy-six, if aided by a loan
pursuant to article eight of the private housing finance law and completed after
December thirty-first, nineteen hundred seventy-five; or (ii) July first, nineteen
hundred seventy-seven, if aided by a loan pursuant to article fifteen of the private
housing finance law; or (iii) July first, nineteen hundred eighty, if aided by a loan
pursuant to article eight-A of the private housing finance law; or (iv) July first,
nineteen hundred eighty, if aided by a loan pursuant to section three hundred twelve
of the housing act of nineteen hundred sixty-four (42 U.S.C.A. 1452b); or (v) July
first, nineteen hundred ninety-two, if started after such date and aided by a loan or
grant under article eleven, twelve, or twenty-two of the private housing finance law,
section six hundred ninety-six-a or section ninety-nine-h of the general municipal law,
or the Cranston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et
seq.); or (vi) July first, nineteen hundred eighty-eight, if started after such date by or
on behalf of a company not qualified under any of the above provisions, which is a
not-for-profit corporation qualified pursuant to section 501(c)(3) of the internal
revenue code and which has entered into a regulatory agreement with the local
housing agency requiring operation of the property as housing for low and moderate
income persons and families.
(2) In the case of alterations or improvements pursuant to paragraph five of
subdivision b of this section which are carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or instrumentality or
any not-for-profit philanthropic organization one of whose primary purposes is
providing low or moderate income housing or financed with mort9a9e insurance by
the New York city residential mortgage insurance corporation or the state of New York
mortgage agency or pursuant to a program established by the federal housing
administration for rehabiliation of existing multiple dwellings in a neighborhood
strategy area as defined by the United States department of housing and urban
development, the abatement of taxes on such property, including the land, shall not
exceed the lesser of the actual cost of the alterations or improvements or one
hundred fifty per centum of the certified reasonable cost of the alterations or
improvements, as determined under regulations of the department of housing
preservation and development, and the annual abatement of taxes shall not exceed
twelve and one-half per centum of such certified reasonable cost, provided that such
abatement shall not be effective for more than twenty years and the annual
abatement of taxes in any consecutive twelve-month period shall in no event exceed
the amount of taxes payable in such kwelve-month period.
(3) In the case of alterations or improvements carried out with the substantial
assistance of grants, loans or subsidies from any federal, state or local agency or
instrumentality or any not-for-profit philanthropic organization one of whose primary
purposes is providing low or moderate income housing, or financed with mortgage
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insurance by the New York city residential mortgage insurance corporation or the
state of New York mortgage agency or pursuant to a program established by the
federal housing administration for rehabilitation of existing multiple dwellings in a
neighborhood strategy area as defined by the United States department of housing
and urban development where such alterations or improvements are done on
property located in census tracts in which seventy-five percent or more of the
population live in households which earn fifty percent or less of the median household
income of the city, the abatement of taxes on such property, including the land, shall
not exceed the lesser of the actual cost of the alterations or improvements or one
improvements, as determined under regulations of the department of housing
preservation and development, and the annual abatement of taxes shall not exceed
twelve and one-half per centum of such certified reasonable cost, provided that such
abatement shall not be effective for more than twenty years and the annual
the amount of taxes payable in such twelve month period.
(4) In the case of alterations, improvements or conversions pursuant to paragraph
nine of subdivision b of this section, the abatement of taxes on such property,
including the land, shall not exceed the lesser of the actual cost of the alterations or
improvements or one hundred fifty per centum of the certified reasonable cost of the
alterations or improvements, as determined under regulations of the department of
housing preservation and development, and the annual abatement of taxes shall not
exceed twelve and one-half per centum of such certified reasonable cost, provided
that such abatement shall not be effective for more than twenty years and the annual
the amount of taxes payable in such twelve-month period.
d. The benefits of this section shall apply:
(1) to any multiple dwelling which is altered, improved or increased in valuation with
aid of a loan provided by the city of New York, the New York city housing
development corporation or the United States department of housing and urban
development for the elimination of conditions dangerous to human life or detrimental
to health, including nuisances as defined in section three hundred nine of the multiple
dwelling law, or other rehabilitation or improvement whether or not all of the units
thereof were in existence prior to rehabilitation pursuant to the provisions of: (i)
article two, eight or eight-A of the private housing finance law provided that such
dwelling is made available solely to persons or families of low income as defined in
said articles, (ii) article twelve of the private housing finance law, (iii) article fifteen of
- the private housing finance law or(iv) any federal lawwherethe multiple dwelling is
supervised or regulated by the United States department of housing and urban
development.
(2) except as hereinafter provided, to any building or structure which is converted to
a class A multiple dwelling or to any existing dwelling which is substantially
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rehabilitated, and further provided that the rents subsequent to conversion or

substantial rehabilitation shall not exceed such amount as may be fixed: (i) by the
United States department of housing and urban development, (ii) pursuant to the
private housing finance law of the state of New York, or (iii) pursuant to chapter three
or chapter four of title twenty-six of the code, provided that the initial legal regulated
rent for the dwelling units shall be the rent charged and paid by the initial tenant and
registered with the New York state division of housing and community renewal.
Buildings or structures which are converted to class A multiple dwellings and existing
dwellings which are substantially rehabilitated shall contain bedrooms in a number
equal to at least fifty percent of the apartments created where an alteration permit
has been issued by the department of buildings prior to April first, nineteen hundred
eighty and seventy-five percent of the apartments created where an alteration permit
has been issued by the department of buildings on or after April first, nineteen
hundred eighty provided, however, that if a building or structure is converted from a
non-residential use to a class A multiple dwelling and the units therein contain an
average floor area of one thousand square feet, such requirement as to the number of
bedrooms shall not be applicable and if an existing dwelling is substantially
rehabilitated, the seventy-five percent bedroom requirement shall be reduced to the
extent its application would necessitate a reduction in the number of units which are
contained in the existing dwelling prior to commencement of substantial
rehabilitation.
(3) to any multiple dwelling, building or structure otherwise eligible for any of the
benefits of this section which:
(i) is operated exclusively for the benefit of persons or families who are or will be
entitled to occupancy by reason of ownership of stock or membership in the
corporate owner, or for the benefit of such persons or families and other persons
or families entitled to occupancy under applicable provisions of law without
ownership of stock or membership in the corporate owner, or (ii) is owned as a
condominium and is occupied as the residence or home of three or more families
living independently of each other; provided, however, that, in addition to all
other conditions of eligibility for the benefits of this section, except for multiple
dwellings in which units have been newly created by substantial rehabilitation of
vacant buildings or conversions of non-residential buildings, the availability of
benefits under this section for such multiple dwellings, buildings or structures
shall be conditioned on the following: (a) alterations or improvements to at least
one building-wide system are part of the application for benefits, and (b) (i) the
assessed valuation of such multiple dwelling, building, or structure, including land,
shall not exceed an average of thirty thousand dollars per dwelling unit at the
time of the commencement of the alterations or improvements, and (ii) during
the three years immediately preceding the commencement of the alterations or
improvements the average per room sale price of the dwelling units or the stock
allocated to such dwelling units shall have been no greater than thirty-five
percent of the maximum mortgage amount for a single family home eligible for
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purchase by the Federal National Mortgage Association; provided that if less than
ten percent of the dwelling units or an amount of stock less than the amount
allocable to ten percent of such dwelling units was not transferred during such
preceding three year period, eligibility for benefits shall be conditioned upon the
multiple dwelling, building, or structure having an assessed valuation per dwelling
unit of no more than twenty-five thousand dollars at the time of the
commencement of the alterations or improvements. Provided, further, that such
benefits shall be available only for alterations or improvements commenced on or
after June first, nineteen hundred eighty-six.
Notwithstanding the foregoing, the benefits of this section shall be available for
any alterations or improvements commenced after August seventh, nineteen
hundred ninety-two for such multiple dwellings, buildings or structures and shall
be conditioned on the following: (1) the application for benefits may include any
item of work designated in the rules adopted by the department of housing
preservation and development as a major capital improvement or asbestos
abatement to the extent such asbestos abatement is required by federal, state
and local law; and (2)(i) the assessed valuation of such multiple dwelling,
building or structure, including land, shall not exceed an average of forty
thousand dollars per dwelling unit at the time of the commencement of the
alterations or improvements; and (ii) the average per room sale price of the
dwelling units or the stock allocated to such dwelling units shall have been no
greater than thirty-five percent of the maximum mortgage amount for a single
family home eligible for purchase by the Federal National Mortgage Association
during the three years immediately preceding the commencement of the
alterations or improvements; provided that if less than ten percent of the dwelling
units or an amount of stock less than the amount allocable to ten percent of such
dwelling units was not transferred during such preceding three year period,
eligibility for benefits shall be conditioned upon the multiple dwelling, building, or
structure having an assessed valuation per dwelling unit of no more than forty
thousand dollars at the time of the commencement of the alteration or
improvement. Notwithstanding the foregoing, benefits shall also be available
under this section for work completed in any such multiple dwelling, building or
structure within the first three years of its conversion to cooperative or
condominium ownership, as evidenced by the date on which the first closing in a
condominium to a bona fide purchaser occurs or in the case of a cooperative, the
date on which the shares allocable to a unit are conveyed to a bona fide
purchaser, provided, however, that the availability of such benefits for
conversions, alterations or improvements commenced prior to June first, nineteen
hundred eighty-six, except with-respect to governmentally:assisted projects as- defined in regulations issued by the department of housing preservation and
development, shall be conditioned upon the completion of such conversions,
alterations or improvements within three years after acceptance for filing of the
prospectus to establish such cooperative or condominium entity by the attorney
general of the state of New York. The maximum amount of tax abatement which
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may be received in any tax period under this section by any such multiple
dwelling, building or structure for any alterations and improvements commenced
Yhree or more years after its initial conversion to cooperative or condominium
ownership shall be limited to an amount not in excess of two thousand five
hundred dollars per dwelling unit of the certified reasonable cost of the alterations
or improvements as determined under regulations of the department of housing
preservation and development.
(3-a) Notwithstanding any contrary provision of paragraph three of this subdivision,
the availability of any benefits under this section to any multiple dwelling, building or
structure owned and operated by alimited-profit housing company established
pursuant to article two of the private housing finance law shall not be conditioned
upon the assessed valuation of such multiple dwelling, building or structure, including
land, as calculated as an average dollar amount per dwelling unit, at the time of the
commencement of the alterations or improvements; provided, however, that such
limited-profit housing company (i) is organized and operating as a mutual company,
(ii) continues to be organized and operating as a mutual company and to own and
operate the multiple dwelling, building or structure receiving such benefits, and (iii)
has entered into a binding and irrevocable agreement with the commissioner of
housing of the state of New York, the supervising agency, the New York city housing
development corporation, or the New York state housing finance agency prohibiting
the dissolution or reconstitution of such limited-profit housing company pursuant to
section thirty-five of the private housing finance law far not less than fifteen years
from the commencement of such benefits. For the purposes of this paragraph, the
terms "mutual company" and "supervising agency" shall have the same meanings as
set forth in section two of the private housing finance law.
(3-b) Notwithstanding any contrary provision of paragraph three of this subdivision,
the availability of any benefits under this section to any multiple dwelling, building or
structure owned and operated by a redevelopment company established pursuant to
article five of the public housing finance law shall not be conditioned upon the
assessed valuation of such multiple dwelling, building or structure, including land, as
calculated as an average dollar amount per dwelling unit, at the time of the
commencement of the alterations or improvements; provided, however, that such
redevelopment company (i) is organized and operating as a mutual redevelopment
company, (ii) continues to be organized and operating as a mutual redevelopment
company and to own and operate the multiple dwelling, building or structure receiving
such benefits, and (iii) has entered into a binding and irrevocable agreement with the
commissioner of housing and community renewal of the state of New York, the
supervising agency, the New York city housing development corporation, or the New
York state housing finance agency prohibiting the dissolution or reconstitution of such
redevelopment company pursuant to section one hundred twenty-three of the private
housing finance law until the earlier to occur of (i) fifteen years from the
commencement of such benefits, or (ii) the expiration of any tax exemption granted
to such redevelopment company pursuant to section one hundred twenty-five of the
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private housing finance law. For the purposes of this paragraph, the terms "mutual"
and "supervising agency" shall have the same meaning as set forth in section one
hundred two of the private housing finance law.
(4) provided that, in the case of any building or structure: (i) in which conversion,
alteration or improvement commences on or after January first, nineteen hundred
eighty-two, and (ii) which is located in the county of New York within an area
designated herein as a minimum tax zone, the benefits of this section shall not be
applied to abate or reduce the taxes upon the land portion of such real property,
which shall continue to be taxed based upon the assessed valuation of the land and
the applicable tax rate at the time such taxes are levied; provided, however, that the
foregoing limitation with respect to abatement of taxes shall not apply:
(A) to any multiple dwelling which is eligible for benefits based upon moderate
rehabilitation pursuant to paragraph five of subdivision b of this section, or (B) to
any multiple dwelling which is governmentally assisted as such term is defined in
regulations to be promulgated by the department of housing preservation and
development pursuant to subdivision m of this section.
(5) provided that in the case of any building or structure: (i) in which conversion,
alteration or improvement commences on or after January first, nineteen hundred
eighty-two, and (ii) which is located in the county of New York within an area
designated herein as a tax abatement exclusion zone, the benefits of this section shall
not be applied to abate or reduce the taxes upon such real property, which shall
continue to be taxed based upon the assessed valuation of the land and the
improvements and the applicable tax rate at the time such taxes are levied; provided,
however, that the foregoing limitation shall not deprive such real property of any
benefits of exemption from taxation of an increase in assessed valuation to which it is
entitled pursuant to this section; provided, however, that the foregoing limitation with
respect to abatement of taxes shall not apply:
(A) to any alteration or improvement designated as a major capital improvement,
by the regulations promulgated by the department of housing preservation and
development pursuant to subdivision m of this section, provided that the
maximum amount of tax abatement which may be received in any tax period
under this section by any such multiple dwelling, building or structure for any
alterations and improvements shall be limited to an amount not in excess of
twenty-five hundred dollars per dwelling unit of the certified reasonable cost of
the alterations and improvements as determined under regulations of the
department of housing preservation and development, or (B) to any multiple
dwelling which. is governmentally assistedas suchterm.is defined by said
regulations.
(6) For purposes of this subdivision, the minimum tax zone in the county of New York
shall be as follows: all tax lots now existing or hereafter created within the following
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designated area or adjacent to either side of any street forming the boundary of such
designated area, which area is bounded and described as follows:
BEGINNING at Central Park West and 86th Street; thence easterly along 86th Street
to the East River; thence southerly along the easterly boundary of New York county to
23rd Street; thence westerly along Z3rd Street to Third Avenue; thence southerly
along Third Avenue to 14th Street; thence westerly along 14th Street to Broadway;
thence southerly along Broadway to Houston Street; thence westerly along Houston
Street to West Street; thence northerly along West Street to 14th Street; thence
easterly along 14th Street to 9th Avenue; thence northerly along Ninth Avenue to
57th Street; thence westerly along 57th Street to the Hudson River; thence northerly
along the westerly boundary of New York county to 72nd Street; thence easterly
along 72nd Street to Central Park West; thence northerly along Central Park West to
86th Street and Central Park West, which is the place of beginning.
(7) For purposes of this subdivision, the tax abatement exclusion zone in the county
of New York shall be as follows: all tax lots within the following designated area or
adjacent to either side of any street forming the boundary of such designated area or
adjacent to either side of any street designated as included in such area, which area
is bounded and described as follows:
BEGINNING at the intersection of 96th Street and Central Park West; thence easterly
to Park Avenue; thence southerly along Park Avenue to the intersection of Park
Avenue and 72nd Street; thence easterly along 72nd Street to York Avenue; thence
northerly along York Avenue to the Franklin Delano Roosevelt Drive; thence northwesterly along the Franklin Delano Roosevelt Drive to as far as 96th Street; thence
easterly to the easterly border of New York county; thence southerly along such
border to 34th Street; thence westerly along 34th Street to 8th Avenue; thence
northerly, along 8th Avenue and Central Park West as far as 96th Street, which is the
place of beginning. Additionally, the following North/South and East/West
thoroughfares shall be included in the tax abatement exclusion zone: 96th Street
between Central Park West and the East River; 86th Street between Central Park
West and the East River; 79th Street between West End Avenue and the East River;
72nd Street between West End Avenue and the East River: West End Avenue from
72nd Street to 86th Street; and Riverside Drive from 72nd Street to 96th Street.
(8) Limitation on benefits. (a) The provisions of this paragraph shall apply to all
conversions, alterations and improvements except the following:
(i) alterations or improvements under paragraphs four, six and seven of
subdivision b of this section, where carried out:
(A) with the substantial assistance of grants, loans or subsidies from any
federal, state or local agency or instrumentality, or any not-for-profit
philanthropic organization one of whose primary purposes is providing low or
moderate incoming housing; or
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(B) with mortgage insurance by the New York city residential mortgage
insurance corporation or the state of New York mortgage agency; or
(C) in the areas bounded and described as follows:
AREAS IN THE COUNTY OF BRONX:
MOTT HAVENThe area bounded by East 159th Street; Third Avenue; East
161st Street; Prospect Avenue; East 149th Street; Jackson Avenue; Bruckner
Expressway; Major Deegan Expressway; Morris Avenue; East 149th Street
and Park Avenue.
ALDUS GREENThe area bounded by East 169th Street; East 167th Street;
Westchester Avenue; Sheridan Expressway; Longfellow Avenue; Randall
Avenue; Tiffany Street; Longwood Avenue; Bruckner Expressway; East 149th
Street; and, Prospect Avenue.
MORRISANIAThe area bounded by Cross Bronx Expressway; Park Avenue;
East 174th Street; Washington Avenue; Cross Bronx Expressway; Arthur
Avenue; Crotona Park North; Waterloo Place; East 175th Street; Southern
Boulevard; Cross Bronx Expressway; Sheridan Expressway; East 167th
Street; East 169th Street; Prospect Avenue; East 161st Street; Third Avenue;
East 159th Street; Park Avenue; and, Webster Avenue.
HIGHBRIDGE-CONCOURSEThe area bounded by Washington Bridge-Cross
Bronx Expressway; Webster Avenue; Park Avenue; East 149th Street; and,
the Harlem River.
WEST TREMONTThe area bounded by West Fordham Road; East Fordham
Road; Webster Avenue; Cross Bronx Expressway; George Washington Bridge;
and, the Harlem River.
BELMONT-BRONX PARK SOUTHThe area bounded by Southern Boulevard;
Bronx Park South; Boston Road; East 180th Street; Bronx River Parkway;
Cross Bronx Expressway; Crotona Parkway; East 175th Street; Waterloo
Place; Crotona Park North; Arthur Avenue; Cross Bronx Expressway;
Washington Avenue; East 174th Street; Park Avenue; Cross Bronx
Expressway; and, Webster Avenue.
KINGSBRIDGEThe area bounded by Van Cortlandt Park South; West Gun Hill
Road; Jerome Avenue; Bainbridge Avenue; East 211th Street and its
prolongation; Conrail right of way; Bedford Park Boulevard; Webster Avenue;
........East Fordham Road; West Fordham Road; the Harlem. River; Marble Hill
Avenue; West 230th Street; Riverdale Avenue; Greystone Avenue; Waldo
Avenue; Manhattan College Parkway; and, Broadway.
SOUND VIEWThe area bounded by the Cross Bronx Expressway; Bronx River
Parkway; East Tremont Avenue; White Plains Road; Randall Avenue;
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Olmstead Avenue; Lacombe Avenue; Westchester Creek; East River; Bronx

River; Westchester Avenue; and, Sheridan Expressway.
PELHAM PARKWAYThe area bounded by Adee Avenue; Mathews Avenue;
Williamsbridge Road; Pelham Parkway South; Yates Avenue; Lydig Avenue;
Williamsbridge Road; Neil Avenue; Bogart Avenue; East Tremont Avenue;
Bronx River Parkway; and, Bronx Park East.
AREAS IN THE COUNTY OF KINGS:
WILLIAMSBURGThe area bounded by Metropolitan Avenue; Union Avenue;
Conselyea Street; Wood Point Road; Frost Street; Morgan Avenue; Meserole
Street; Bushwick Avenue; Flushing Avenue; Union Avenue; Division Avenue;
and, the East River.
BEDFORD-STUYVESANTThe area bounded by Myrtle Avenue; Broadway;
Ralph Avenue; Atlantic Avenue; and, Nostrand Avenue.
BUSHWICKThe area bounded by Flushing Avenue; Cypress Avenue; Menahan
Street; St. Nicholas Avenue; Gates Avenue; Wycoff Avenue; Eldert Street;
Irving Avenue; Chauncey Street; Central Avenue; property line of the
Cemetery of the Evergreens; Conway Street; and, Broadway.
EAST-NEW YORKThe area bounded by Jamaica Avenue; Elderts Lane; Atlantic
Avenue; Fountain Avenue; New Lots Avenue; and Sheffield Avenue.
SOUTH BROOKLYN (A)The area bounded by The Buttermilk Channel;
Congress Street; Hicks Street; Hamilton-Gowanus Parkway; the Gowanus
Canal; and, the Gowanus Bay.
SOUTH BROOKLYN (B)The area bounded by Fourth Avenue; Pacific Street;
Flatbush Avenue; Sixth Avenue; and, 15th Street.
SUNSET PARKThe area bounded by the Upper New York Bay; the Gowanus
Bay; 15th Street; Prospect Park S.W.; Coney Island Avenue; Caton Avenue;
Fort Hamilton Parkway; 37th Street; Eighth Avenue; Long Island Railroad
right of way; Gowanus Expressway; 64th Street; Shore Parkway; and, the
Long Island Railroad right of way.
CROWN HEIGHTSThe area bounded by Pacific Street; Vanderbilt Avenue;
Atlantic Avenue; Ralph Avenue; East New York Avenue; Utica Avenue;
Winthrop Street; Flatbush Avenue; Parkside Avenue; Ocean Avenue; Empire
Boulevard; Washington Avenue; Eastern Parkway; Grand Army Plaza; and,
FlatbusFi Avenue.
CONEY ISLANDThe area bounded by the Coney Island Creek; Stillwell
Avenue; the Boardwalk West; and, West 37th Street.
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FLATBUSHThe area bounded by Parkside Avenue; Fiatbush Avenue; Winthrop

Street; New York Avenue; Clarendon Road; East 31st Street; Newkirk
Avenue; Nostrand Avenue; Foster Avenue; New York Avenue; Avenue H;
Flatbush Avenue; Avenue K; and, Coney Island Avenue.
EAST FLATBUSHThe area bounded by Clarkson Avenue; Utica Avenue; East
New York Avenue; East 98th Street; Church Avenue; Ralph Avenue;
Clarendon Road; and, New York Avenue.
BROWNSVILLEThe area bounded by Broadway; Rockaway Avenue; Atlantic
Avenue; East New York Avenue; Christopher Avenue; Glenmore Avenue;
Powell Street; Sutter Avenue; Van Sinderen Avenue; Dumont Avenue; Junius
Street; Livonia Avenue; Stone Avenue; Linden Boulevard; Rockaway Avenue;
Hegeman Avenue; Hopkinson Avenue; Riverdale Avenue; East 98th Street;
East New York Avenue; Ralph Avenue; Atlantic Avenue; and, Saratoga
Avenue.
AREAS IN THE COUNTY OF NEW YORK:
LOWER EAST SIDEThe area bounded by East 14th Street; the East River;
Delancey Street; Chrystie Street; East Houston Street; and, Avenue A.
MANHATTAN VALLEYThe area bounded by Cathedral Parkway (West 110th
Street); Central Park West; West 100th Street; and, Broadway.
EAST HARLEMThe area bounded by East 142nd Street; the Harlem River; East
96th Street; and, Fifth Avenue.
CENTRAL HARLEMThe area bounded by West 145th Street; the Harlem River;
Fifth Avenue; Cathedral Parkway (West 110th Street); Morningside Avenue;
West 123rd Street; St. Nicholas Avenue; West 141st Street; and, Bradhurst
Avenue.
HAMILTON HEIGHTSThe area bounded by West 155th Street; Bradhurst
Avenue; West 141st Street; Convent Avenue; West 140th Street; Amsterdam
Avenue; West 133rd Street; and, Riverside Drive.
WASHINGTON HEIGHTSThe area bounded by the Harlem River; Teunissen
Place; West 230th Street; Marble Hill Lane; the Harlem River; West 155th
Street; and, the Hudson River.
AREAS IN THE COUNTY OF QUEENS:
HALLETS POINTSThe area bounded by the East River-East Channel, Hallets
Cove and Pot Cove; Hoyt Avenue South; 21st Street; 31st Avenue; Vernon
Boulevard; and, 35th Avenue.
JACKSON HEIGHTS-CORONA-EAST ELMHURSTThe area bounded by Grand
Central Parkway; Long Island Railroad right of way; 110th Street; Corona
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Avenue; Long Island Expressway; Junction Boulevard; Roosevelt Avenue;

and, Brooklyn-Queens Expressway East.
RIDGEWOODThe area bounded by Grand Avenue; Rust Street; 59th Drive;
60th Street; Bleecker Street; Forest Avenue; Myrtle Avenue; the Long Island
Railroad right of way; and, Queens-Brooklyn boundary line.
JAMAICA SOUTHThe area bounded by the Long Island Railroad right of way;
New York Boulevard; Southern Parkway (Sunrise Highway) and, Van Wyck
Expressway.
FAR ROCKAWAYThe area bounded by the Jamaica Bay-Mott Basin; QueensNassau boundary line; Far Rockway*~8.+~! Beach; Beach 32nd Street; and,
Norton Drive.
AREAS IN THE COUNTY OF RICHMOND:
PORT RICHMONDThe area bounded by the Kill Van Kuli; Jewett Avenue and
its prolongation; Forest Avenue; and, the Willow Brook Expressway.
NEW BRIGHTONThe area bounded by the Kili Van Kull; Westervelt Avenue;
Brook Street; Castleton Avenue; and, North Randall Avenue and its
prolongation.
STAPLETONThe area bounded by Victory Boulevard; the Upper New York Bay;
Vanderbilt Avenue; Van Duzer Street; Cebra Avenue; and, St. Pauls Avenue.
FOX HILLSThe area bounded by Vanderbilt Avenue; the Upper New York Bay;
the Staten Island Rapid Transit Railway right of way; and, the Staten Island
Expressway.
(D) pursuant to a program established by the federal housing administration,
federal national mortgage association, federal home loan mortgage
corporation or government national mortgage association for the rehabilitation
of existing multiple dwellings for persons of low or moderate income, or a
program of mortgage insurance for the rehabilitation of existing multiple
dwellings pursuant to section two hundred twenty-three-f of the national
housing act as amended, or a program of mortgage insurance established by
the federal housing administration for the rehabilitation of existing multiple
dwellings for persons of low or moderate income; provided that properties
receiving benefits under such programs are located in a neighborhood
strategy area, as defined, by the United States department of housing and
urban
development,. or in one of the areas listed in subparagraph (C) of this
paragraph....
(ii) alterations or improvements under paragraph five of subdivision b of this

section; and
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(iii) conversion of residential units qualified for the protection of article seven-C of
the multiple dwelling law under paragraph eight of subdivision b of this section.
(b) Abatement limitations. (1) The amount of abatement under subdivision c
of this section shall not exceed the certified reasonable cost of the conversion,
alteration or improvement, as determined under regulations of the
department of housing preservation and development, provided that the
amount of certified reasonable cost eligible for abatement under this section
shall not exceed fifteen thousand dollars for a dwelling unit of three and onehalf rooms, as determined under the applicable zoning resolution, and a
comparable amount for dwelling units of other sizes, determined under
regulations of the department of housing preservation and development, and
further provided that the amount of certified reasonable cost eligible for
abatement under this section may exceed fifteen thousand dollars or such
comparable amount per dwelling unit, but not more than twenty-five percent
above such amount, upon application of the property owner and a
determination by the department of housing preservation and development
that:
(A) in the case of a conversion under paragraph one, two or three of
subdivision b of this section, the increased cost is necessary to comply
with applicable law; or
(B) in the case of an alteration or improvement under paragraph seven of
subdivision b of this section, the increased cost is necessary to eliminate
the unhealthy or dangerous conditions or replace the inadequate and
obsolete facilities in a satisfactory manner, or
(C) in the case of an alteration or improvement under paragraph six of
subdivision b of this section, the increased cost is necessary to conserve
energy in a satisfactory manner; or
(D) in the case of an alteration or improvement under paragraph four of
subdivision b of this section, the increased cost, to the extent such cost is
not offset by any and all tax credits received as a result of the alteration
or improvement, is necessary to comply with any provision of law
regulating historic or landmark buildings or structures.
(ii) Notwithstanding any other provisions of this subparagraph, and in
addition to all other conditions of eligibility for the benefits of this
section, the availability of abatements pursuant to subdivision c of this
section for any multiple dwellings, buildings or structures not ownedas acondominium or cooperative, except for multiple dwellings in
which units have been newly created by substantial rehabilitation of
vacant buildings or conversions of non-residential buildings, shall be
conditioned on the assessed valuation of such multiple dwelling,
building or structure, including land, not exceeding an average of
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thirty thousand dollars per dwelling unit at the time of

commencement of the alterations or improvements, provided,
however, that such average shall not exceed $40,000 per dwelling
unit at the time of commencement of the alteration or improvement
for alterations or improvements commenced after the effective date of
this local law, which added this amendment.
(c) Exemption limitations.
(i) The increase in assessed valuation of the real property resulting from
the conversion, alteration or improvement under subdivision b of this
section, shall be exempt from taxation as provided in this section, only to
the extent provided in this subparagraph, provided that this subparagraph
shall not apply to any conversions, alterations or improvements
commenced on or after June first, nineteen hundred eighty-six, unless
such conversions, alterations or improvements are carried out in buildings
or structures located in the borough of Manhattan south of or adjacent to
the south side of one hundred tenth street. The amount of the increased
assessed valuation that is exempt from taxation shall depend on the
amount of the total assessed value per dwelling unit calculated by dividing
the amount of the total assessed valuation of the property, as determined
under the real property tax law, by the number of dwelling units in the
building after completion of the conversion, alteration or improvement.
The amount of increased assessed valuation that will be exempt from
taxation for buildings with total assessed valuation per dwelling unit of
less than thirty-eight thousand dollars shall be calculated pursuant to the
following formula: (A) any portion of total assessed valuation of the
property attributable to the first eighteen thousand dollars of total
assessed valuation per dwelling unit, to the extent it represents increased
assessed valuation, shall be one hundred percent exempt; (B) any portion
of total assessed valuation attributable to the next four thousand dollars
of total assessed valuation per dwelling unit, to the extent it represents
increased assessed valuation, shall be seventy-five percent exempt; (C)
any portion of total assessed valuation attributable to the next four
thousand dollars of total assessed valuation per dwelling unit, to the
extent it represents increased assessed valuation, shall be fifty percent
exempt;(D) any portion of total assessed valuation attributable to the
next four thousand dollars of total assessed valuation per dwelling unit, to
the extent it represents increased assessed valuation, shall be twenty-five
percent exempt;(E) any portion of total assessed valuation attributable to
the next eight thousand dollars of total assessed valuation per dwelling
unit, to the extent it represents increased assessed valuation per dwelling
unit, shall be fully taxable. Property with a total assessed valuation per
dwelling unit of thirty-eight thousand dollars or more shall not be eligible
for a tax exemption under this section.
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(ii) In calculating the amount of increased assessed valuation that will be

exempt from taxation pursuant to the formula in clause (i) of this
subparagraph, the full amount of total assessed valuation that does not
represent increased assessed valuation shall be applied in such formula
prior to the inclusion of any amount of increased assessed valuation.
(iii) Where the real property is occupied in part for residential purposes
and in part for non-residential purposes, the assessed valuation of the
property shall be appropriately allocated between the residential and nonresidential portions. In computing the total assessed valuation per
dwelling unit under this subparagraph, only the amount of valuation so
allocated to the residential portion shall be considered.
(iv) Commencing with the assessment roll for the year nineteen hundred
eighty-four, where there has been a change in the level of assessment
from the assessment roil of the prior year of properties receiving
exemptions under this section, the department of finance may petition the
state board to certify the percentage of such change for the purposes of
this section. In such petition, the department of finance shall submit such
information as the state board shall require in order to certify the
percentage of such change. The state board may also make such a
certification on its own motion. Upon receipt of such certification from the
state board, the department of housing preservation and development
may modify the dollar values of total assessed valuation per dwelling unit
in clause (i) of this subparagraph to reflect the percentage change in the
level of assessment as shown in such certification. As used in this
subparagraph, the term "change in the level of assessment' means the
net increase or decrease in the assessed valuation of properties in the
assessing unit that received exemptions under this section in the current
year as compared to those that received exemptions under this section in
the prior year as a result of assessing such properties at a higher or lower
ratio of full value.
(v)(A) Notwithstanding the provisions of clause (i) of this subparagraph,
the department of housing preservation and development may reduce or
remove the limitations on the exemption from taxation provided in such
clause with respect to a particular property undergoing alteration or
improvement, upon application of the property owner and a determination
by such department that the increased benefit will increase the number of
dwelling units that will be affordable to persons of low and moderate
income, and the increased benefit is necessary to make ewnomically
viable units or improvement in the quality of dwelling units that will be
affordable to persons of low or moderate income.
(B) As used in this subparagraph, the term "persons of low or
moderate income" shall mean persons who would qualify for housing
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subsidies pursuant to section two hundred thirty-five of the national

housing act, as amended, at one hundred thirty-five percent of the
income limitations provided therein.
(C) Upon receiving an application under this subparagraph in proper
form, the department of housing preservation and development shall
immediately submit it to the community board for the area in which
the project is located, which may, within forty-five days of receiving it
and after a public hearing, make recommendations to the department
as to the application. The department shall act on the application
within sixty days of receiving it from the property owner in proper
form, but not before expiration of the time for the community board
to make its recommendations, unless the board has acted sooner.
(d) The department of housing preservation and development may set forth
preliminarily the terms of a determination under subparagraph (b) or (c) of
this paragraph prior to the commencement of the conversion, alteration or
improvement. Any such determination shall take effect after completion of the
work in accordance with the terms of the application made by the property
owner.
(e) Any determination of the department of housing preservation and
development to increase an abatement under subparagraph (b) of this
paragraph, or to reduce or remove the exemption limitations under
subparagraph (c) of this paragraph shall state the basis for the determination
and the data on which the determination was based. Such determination shall
be published in the City Record for five consecutive days after the
determination is rendered.
d-i.
(1) A group of multiple dwellings which was developed as a planned community and
which is owned as two separate condominiums containing a total of ten thousand or
more dwelling units shall be eligible for tax exemption and abatement as provided in
this subdivision.
(2) any increase in assessed valuation resulting from alterations or improvements
financed with substantial governmental assistance to one or more multiple dwellings
in a planned community described in paragraph one of this subdivision shall be
exempt from taxation for local purposes. Such exemption shall be equal to the
increase in the valuation which is subject to exemption under this paragraph for thirty
years.. After such period. of time; the. amount of such exempted assessed value shall...
be reduced by twenty percent in each succeeding year until the assessed value of the
alterations or improvements is fully taxable. Such exemption may commence at the
beginning of any tax quarter subsequent to the start of such alterations or
improvements. In no event shall such alterations or improvements directly or
indirectly result in an equalization increase in the assessed valuation of any multiple
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dwelling forming part of the planned community where such alterations or

improvements are performed.
(3) the taxes on a planned community described in paragraph one of this subdivision,
including the land, may be abated by an amount not to exceed the greater of (i) one
improvements, as determined under the rules of the department of housing
preservation and development, and (ii) the construction cost of the alterations or
improvements identified in such rules. Such abatement shall not be effective for more
than twenty years and the annual abatement of taxes in any consecutive twelvemonth period shall not be greater than ten per centum of the total abatement granted
and shall not exceed the amount of taxes payable in such consecutive twelve-month
period. Such abatement shall begin no sooner than the first quarterly tax bill
immediately following the completion of such alterations or improvements. The
limitations set forth in the second paragraph of paragraph three of subdivision d of
this section for multiple dwellings, buildings and structures owned as condominiums
shall be inapplicable to benefits granted pursuant to this subdivision. Abatement
benefits granted pursuant to this subdivision shall be apportioned among all of the
condominium tax lots within the condominium in which the alterations or
improvements are made, although such alterations or improvements may have been
made to one or fewer than all of the multiple dwellings therein.
(4) in the event that multiple alterations or improvements are undertaken in a
planned community described in paragraph one of this subdivision and separate
applications for benefits therefor are made, all requirements concerning physical
condition of and compliance with law by the multiple dwellings in such planned
community shall apply only upon completion of all such alterations or improvements,
provided that ail such alterations or improvements are completed within six years.
(5) except as provided in this subdivision, all of the requirements imposed by this
section on projects described in subdivision b of this section shall be applicable to
alterations or improvements granted benefits pursuant to this subdivision.
(6) this subdivision shall be applicable only to alterations or improvements completed
prior to December thirty-first, two thousand five.
(7) Alterations and improvements receiving tax benefits under this subdivision shall
not be used as the basis of an application for a major capital improvement rent
increase under state laws governing rent control and rent stabilization, provided,
however, that such alterations and improvements may be eligible for a major capital
improvement increase in an amount not to exceed the amount of the decrease in
rents that occurs as a result of the installation of individual electrical metering for the
residential units. Such major capital improvement increase shall be implemented on a
per unit basis.
e. Notwithstanding any provision of this section or any other section of the code to the
contrary, where such dwelling is in an area where a plan of redevelopment, program of
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neighborhood improvement, housing maintenance, demonstration rehabilitation or

concentrated code enforcement is being carried out, the rents subsequent to conversion,
alteration or improvement may exceed the maximum amount allowable pursuant to
chapter four of title twenty-six of the code where necessity for the adjustment of such
rents is certified by the department of housing preservation and development.
f. Subject to the provisions of subdivision d of this section, the department of housing
preservation and development shall determine and certify the reasonable cost of any such
conversions, alterations or improvements and eligibility for the benefits of this section and
for that purpose may adopt rules and regulations, administer oaths to and take the
testimony of any person, including but not limited to the owner of such property, may
issue subpoenas requiring the attendance of such persons and the production of such
bills, books, papers or other documents as it shall deem necessary, may make preliminary
estimates of the maximum reasonable cost of such conversions, alterations or
improvements, may establish maximum allowable costs of specified units, fixtures or
work in such conversions, alterations or improvements, and may require the submission
of plans and specifications of such conversions, alterations or improvements, and may
require the submission of plans and specifications of such conversions, alterations or
improvements before the start thereof. Applications for certification shall include all bills
and other documents showing the cost of construction or such other evidence of such cost
as shall be satisfactory to the department of housing preservation and development,
including, without limitation, certification of cost by a certified public accountant in
accordance with generally accepted accounting principles. Applications for certification for
a building eligible for benefits pursuant to paragraph three of subdivision d of this section,
for alterations or improvements completed more than three years after its conversion to
cooperative or condominium ownership, shall include such documentation of the sale price
of dwelling units or stock allocated to such dwelling units as may be required by the
department of housing preservation and development, including but not limited to
certification of sales price by a certified public accountant. In addition, such applications
shall contain the consent of the applicant to allow the department of housing preservation
and development access to records, including but not limited to other tax records, as the
department may deem appropriate to enforce such conditions of eligibility. Applications
for certification filed for conversions, alterations or improvements completed after
December thirty-first, two thousand eleven pursuant to paragraphs one through seven
and paragraph nine of subdivision b of this section shall be made after completion and
within thirty-six months following the start of construction of the conversion, alteration or
improvement, except that applications for certification for alterations or improvements
undertaken by a housing development fund company organized pursuant to article eleven
of the private housing finance law, which are carried out with the substantial assistance of
grants,. loans or subsidies. from any federal,. state or local governmental agency or
instrumentality or which are carried out in a property transferred from the city of New
York shall be made after completion and within seventy-two months following the start of
the construction of the alteration or improvement. Provided, however, the department of
housing preservation and development is empowered to grant an extension of the period
for application for any project carried out with the substantial assistance of loans, grants
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or subsidies from any federal, state or local governmental agency or instrumentality, if

such application is made within seventy-two months from commencement of
construction. Applications for certification pursuant to paragraph eight of subdivision b of
this section shall be filed within twelve months of the date of completion as provided by
such subdivision.
g. To the end that conversions, alterations or improvements in such property shall
interfere as little as practicable with the clearance, rehabilitation or rebuilding of substandard and insanitary areas and shall be confined to buildings and structures which are
structurally sound and comply with applicable provisions of law, eligibility for the benefits
of this section shall be restricted to such buildings and structures which the department of
housing preservation and development shall certify:
(1) to be structurally sound and to comply with applicable provisions of law, as
determined by the department of buildings, which certification shall be evidenced by a
certificate describing the property involved; and
(2) if in an area for which a final plan of clearance, replanning, reconstruction,
rehabilitation, or redevelopment has been approved pursuant to article fifteen of the
general municipal law, or if in an area for which an urban renewal plan or tests,
studies or demonstrations have been approved pursuant to article fifteen of the
general municipal law, to be improved in conformity with such replanning,
reconstruction, rehabilitation, redevelopment, tests, studies, demonstrations or plan;
and
(3) if in an area where a program of local neighborhood improvement or housing
maintenance is being carried out, to be in conformity with such program.
h. Application forms for the benefits of this section shall be filed with the department of
finance within the time periods to be established by rules and regulations promulgated by
the department of housing preservation and development pursuant to subdivision m of
this section. The department of finance shall certify the amount of taxes to be abated,
pursuant to the certification of the department of housing preservation and development
as herein provided. No such application shall be accepted unless accompanied by a copy
of the certificate of the department of housing preservation and development both as to
reasonable cost and as to eligibility as provided in subdivision f of this section.
i. The benefits of this section shall not apply:
(1) except as provided in subdivision d of this section, to any existing dwelling which
is not subject to the provisions of the emergency housing rent control law or to the
city rent and rehabilitation law or to the city rent stabilization law or to the private
housing finance law or to any federal law providing for supervision or regulation by
the United States department of housing and urban development;
(2) to any private dweliin9, notwithstanding any other provision of this section, unless
it is in an area where a plan of redevelopment or program of neighborhood
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improvement, housing maintenance, demonstration rehabilitation or concentrated

code enforcement is being carried out and the department of housing preservation
and development finds that the conversion, alteration or improvement is in conformity
with such plan of redevelopment, or program of neighborhood improvement, housing
maintenance, demonstration rehabilitation or concentrated code enforcement;
provided that, notwithstanding the foregoing, for the purposes of this section, a class
A multiple dwelling may be deemed to include any garden-type maisonette dwelling
project consisting of a series of dwelling units which together and in their aggregate
were arranged or designed to provide three or more apartments and are provided as
a group collectively with ail essential services such as, but not limited to, water
supply, house sewers and heat, and which are in existence and operated as a unit
under single ownership on the date upon which an application for the benefits of this
section is received by the department of housing preservation and development, even
though certificates of occupancy were issued for portions thereof as private dwellings;
(3) to any property receiving tax exemption or abatement concurrently for
rehabilitation or new construction under any other provision of New York state or New
York city law with the exception of any alteration or improvement to property
receiving such tax exemption or abatement under the provisions of the private
housing finance law, provided, however, that the benefits of this section shall not
apply to any alterations or improvements done in connection with the refinancing,
pursuant to section Z23f of the national housing act, as amended, of a housing
project organized pursuant to article two and article four of the private housing
finance law;
(4) to any multiple dwelling for ordinary repairs and normal replacement of
maintenance items, as provided in paragraph one of subdivision a, hereof in the event
that the dwelling thereof is receiving the benefits of this section for other ordinary
repairs and normal replacement of maintenance items as of the December thirty-first
preceding the date of application;
(5) to the conversion of any building or structure, or portion thereof:
(i) (a) which is located within any district in the county of New York where a floor
area ratio, as that term is defined in the zoning resolution of the city of New York,
of fifteen or greater is permitted by said resolution, or (b) located in the city of
New York where residential conversion as of right is not permitted by the zoning
resolution, provided, however, that notwithstanding anything to the contrary
contained in this subparagraph, the benefits of this section shall apply to any
building or structure or portion thereof which was purchased from the city of New
York on or after January first,. nineteen hundred. and eighty and prior to December
thirty-first, nineteen hundred and eighty-four and which was granted a variance
for conversion to residential use by the board of standards and appeals prior to
nineteen hundred and eighty-four which variance has expired, and which has
been granted a variance for a conversion to residential use by the board of
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standards and appeals on or after January first, nineteen hundred and ninety-four
and prior to June thirtieth, nineteen hundred and ninety-five, and
(ii) where such benefits are eliminated by regulations to be promulgated by the
department of housing preservation and development pursuant to subdivision m
of this section, unless, in the case of a building or structure in the county of New
York, construction actually commenced prior to January first, nineteen hundred
eighty-two, pursuant to an alteration permit, or, in the case of a building or
structure in the counties of Bronx, Kings, Queens and Richmond, construction
actually commenced prior to October first, nineteen hundred eighty-three,
pursuant to an alteration permit. A copy of any proposed regulation pursuant to
this paragraph shall be transmitted to the city council not less than sixty days
prior to its publication in the City Record, pursuant to section eleven hundred five
of the charter, and
(iii) provided that the provisions of this paragraph shall not apply to conversions
pursuant to paragraph eight of subdivision b of this section.
(6) to any conversion of or alteration or improvement, commenced on or after July
first, nineteen hundred eighty-two, to any class 8 multiple dwelling or class A multiple
dwelling used in whole or in part for single room occupancy, regardless of the status
or use of the building after the conversion, alteration or improvement unless such
conversion, alteration or improvement is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or instrumentality.
(7) to any conversion of or alteration or improvement, commenced on or after the
effective date of this paragraph, to any property classified under the zoning resolution
as anon-profit institution with sleeping accommodations, regardless of the status or
use of the building after the conversion, alteration or improvement unless such
conversion, alteration or improvement is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or instrumentality.
i.l. (a) For purposes of this subdivision, "substantial governmental assistance" shall
mean:
(i) grants, loans or subsidies from any federal, state or local agency or instrumentality
in furtherance of a program for the development of affordable housing approved by
the department of housing preservation and development, including, without
limitation, financing or insurance provided by the state of New York mortgage agency
or the New York city residential mortgage insurance corporation; or
(ii) a written agreement between a housing development fund corporation and the
department of housing preservation and development limiting the incomes of persons
entitled to purchase shares or rent housing accommodations therein.
(b) With respect to conversions, alterations or improvements completed on or
after December thirty-first, two thousand eleven:
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(i) except as otherwise provided in this section with respect to multiple

dwellings, buildings and structures owned and operated either by limitedprofit housing companies established pursuant to article two of the private
housing finance law or redevelopment companies established pursuant to
article five of the private housing finance law, or with respect to a group of
multiple dwellings that was developed as a planned community and that is
owned as two separate condominiums containing a total of ten thousand or
more dwelling units, any multiple dwelling, building or structure that is owned
as a cooperative or a condominium that has an average assessed value of
thirty thousand dollars or more per dwelling unit shall only be eligible for such
benefits if the alterations or improvements for which such multiple dwelling,
building or structure has applied for the benefits pursuant to this section were
carried out with substantial governmental assistance, and
(ii) no benefits pursuant to this section shall be granted for the conversion of
any non-residential building or structure into a class A multiple dwelling
unless such conversion was carried out with substantial governmental
assistance;
(c) If the conversions, alterations or improvements for which such multiple
dwelling, building or structure has applied for benefits pursuant to this section are
not completed on the date upon which such department of housing preservation
and development inspects the items of work claimed in such application, the
department of housing preservation and development shall require the applicant
to pay two times the actual cost for any additional inspections needed to verify
the completion of such conversion, alteration or improvement.
(d) The revocation of benefits granted to any multiple dwelling, building or
structure pursuant to this section shall not exempt any dwelling unit therein from
continued compliance with the requirements of this section or of any local law or
ordinance providing for benefits pursuant to this section.
i-Z. Notwithstanding the provisions of any general, special or local law providing for
benefits pursuant to this section, applications for exemption and/or abatement under this
section shall be filed electronically if the department of housing preservation and
development makes electronic filing available.
j. Notwithstanding the provisions of the multiple dwelling law, or any local law, ordinance,
provisions of this code, rule or regulation, any dwelling to which alterations and
improvements are made pursuant to this section and which did not require a certificate of
occupancy on April second, nineteen hundred forty-five, may be occupied lawfully after
such date upon the completion of such alterations and improvements without such a
certificate being obtained, provided, however, that such alterations and improvements
shall have been made in conformity with law and the applicable provisions for fire
protection required by articles six and seven of the multiple dwelling law.
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k. No owner of a dwelling to which the benefits of this section shall be applied, nor any
agent, employee, manager or officer of such owner shall directly or indirectly deny to any
person because of race, color, creed, national origin, gender, sexual orientation,
disability, marital status, age, religion, alienage or citizenship status, or the use of,
participation in, or being eligible for a governmentally funded housing assistance
program, including, but not limited to, the section 8 housing voucher program and the
section 8 housing certificate program, 42 U.S.C. 1437 et. seq., or the senior citizen rent
increase exemption program, pursuant to either chapter seven of title twenty-six of this
code or section 26-509 of such code, any of the dwelling accommodations in such
property or any of the privileges or services incident to occupancy therein. The term
"disability" as used in this subdivision shall have the meaning set forth in section 8-102 of
the code. Nothing in this subdivision shall restrict such consideration in the development
of housing accommodations for the purpose of providing for the special needs of a
particular group.
I. Any person who shall knowingly and willfully make any false statement as to any
material matter in any application for the benefits of this section shall be guilty of an
offense punishable by a fine of not more than five hundred dollars or imprisonment for
not more than ninety days, or both. The commissioner of the department of housing
preservation and development may reduce or revoke past and future exemption or tax
abatement authorized pursuant to this section if the application for tax exemption or tax
abatement contains a false statement or false information as to a material matter or
omits a material matter.
m. Each agency or department to which functions are assigned by this section may adopt
and promulgate rules and regulations for the effectuation of the purpose of this section.
n. The department of housing preservation and development may require a filing fee in an
amount as provided by the rules and regulations promulgated by the department of
housing preservation and development pursuant to subdivision m of this section.
o. Any tax abatement granted for a period of nine years to a multiple dwelling aided by a
loan provided by the city of New York prior to January first, nineteen hundred seventyone, shall upon application therefor be adjusted to extend for a period of up to twenty
years, provided that the total abatement before and after such adjustment shall not
exceed the total abatement to which such property was initially entitled under this
section.
p. This section is enacted pursuant to the provisions of section four hundred eighty-nine
of the real property tax law and subdivision two of section four hundred five of the private
housing finance law.
q. No application for the benefits of this section shall be accepted by the department of
finance if there are outstanding real estate taxes or water and sewer charges or payments
in lieu of taxes which were due and owing as of the last day of the tax period preceding
the date of such filing with the department of finance, provided that an applicant aided by
article eight or article fifteen of the private housing finance law shall have such application
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accepted by the department of finance if there are no outstanding real estate taxes or
water and sewer charges due and owing as of the last day of the tax period preceding
commencement of construction.
r. In the event that any building or structure receiving the benefits of this section shall
become operated exclusively for commercial, hotel or transient hotel use, the tax
commission shall withdraw benefits granted herein pro- spectively.
s. The benefits of this section shall not apply to alterations or improvements to existing
dwellings in existence on December thirty-first, nineteen hundred seventy-five where (i)
such alterations or improvements were completed on or before December thirty-first,
nineteen hundred seventy-five, and (ii) no dwelling units thereof on December thirty-first,
nineteen hundred seventy-five had rentals which were subject to control by the city rent
agency pursuant to chapter four of title twenty-six of the code. This subdivision shall not
apply to alterations or improvements to any building or structure which is benefitted by
mortgage insurance pursuant to section two hundred thirteen of the national housing act
for applications filed prior to January first, nineteen hundred seventy-nine.
t. Notwithstanding any law to the contrary, the owner of any building or structure eligible
for any of the benefits of this section which is converted to a class A multiple dwelling,
completed, or substantially rehabilitated on or after January one, nineteen hundred
seventy-four, shall register the initial rent for each dwelling unit in such building or
structure with the New York state division of housing and community renewal. After such
registration, the rents of such dwelling units shall be fully subject to regulations under
chapter four of title twenty-six of the code so long as the benefits of this section are in
effect or for such longer period as may be provided by law.
u. Any tax exemption or tax abatement authorized pursuant to this section may be
revoked retroactively by the commissioner of department of housing preservation and
development or the department of finance of the city of New York at any time during the
authorized term of such tax exemption or tax abatement if real estate taxes or water and
sewer charges due to the city of New York remain unpaid for one year after the same are
due and payable. In no event shall revocation be effective prior to the date such taxes or
charges were first due and payable.
v. Where alterations, improvements, or conversions include or benefit that part of a
building which is not occupied for dwelling purposes but is occupied by stores or otherwise
used for commercial purposes or community facilities, the increase in assessed valuation
and the cost of the alteration shall be apportioned so that the benefits of this title shall
not be provided for alterations, improvements or conversions made for other than
dwelling purposes.
w. If any provision of this section or its application to any person shall be held invalid, the
remainder of this section and the applicability of its provisions to other persons or
circumstances shall not be affected thereby.
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x. Notwithstanding any provision of this section, no benefit pursuant to paragraph five of

subdivision b of this section shall be granted for work commenced after January first,
nineteen hundred eighty, unless the applicant establishes that the department of housing
preservation and development and tenants of such class A multiple dwelling were given
notice of (i) the proposed work prior to commencement of such work, (ii) the identity of
the owner's representative, and (iii) the tenants' rights under applicable law with respect
to such work, provided that, in the case of a loan program supervised by such
department, notice to the department shall be unnecessary, and further provided that the
department may itself provide the required notice to the tenants.
y. Applicants for benefits under the provisions of this section shall file with the
department of finance a form supplied by said department which (i) states an intention to
file for benefits under the provisions of this section, (ii) describes the work for which tax
benefits will be claimed and (iii) estimates the cost of such work which will be eligible for
benefits. Such form shall be filed prior to the commencement of such work. If the scope
of such work or the estimated cost thereof changes materially, applicant shall file a
revised statement. Applicants who fail to comply with the requirements of this subdivision
shall be subject to a penalty not to exceed one hundred percent of the filing fee otherwise
payable pursuant to subdivision n of this section.
z. A former tenant or former subtenant of premises in a nonresidential building which is
the subject of an application for an alteration permit for conversion to a class A multiple
dwelling, prior to the application for any tax exemption or abatement benefits for such
building pursuant to this section, and as a condition to the grant thereof, shall be entitled
to a relocation award under the terms and conditions set forth below:
(1) As used in this subdivision, the term "eligible tenant" shall mean any former
tenant or former subtenant who:
(i) leased and used the vacated premises to conduct a manufacturing,
warehousing, or wholesaling business for not less than two consecutive years
immediately prior to vacating;
(ii) vacated such premises on or after April first, nineteen hundred eighty-one for
any reason other than eviction for non-payment of rent;
(iii) vacated such premises (a) no earlier than twenty-four months prior to the
filing date of an application for such alteration permit and (b) no later than the
completion of the conversion as evidenced by the issuance of a permanent
certificate of occupancy for a class A multiple dwelling;
(iv) either purchased or leased for a term of not less than eighteen months other
premise5within the city of New York with a floor area not less than one-third of
the floor area of the vacated premises;
(v) relocated their business to such other premises within one year of vacating
the vacated premises; and
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(vi) paid all commercial rent or occupancy tax for the vacated premises. A
subtenant shall be eligible to receive a relocation award notwithstanding any lack
of eligibility of its prime tenant;
(2) the relocation award shall not exceed the greater of (i) the a99regate base rent
which accrued and was paid by the eligible tenant during the final twenty-four months
of its occupancy of the vacated premises or (ii) four dollars for each square foot that
the eligible tenant occupied in the vacated premises during the final twenty-four
months of its occupancy of the vacated premises. As used in this subdivision, base
rent shall be calculated in the same manner as base rent is calculated for purposes of
commercial rent or occupancy tax in the city of New York. However, the aggregate
award payable to a prime tenant and/or any subtenants of such prime tenant shall
not exceed the amount which would have been payable to the prime tenant had the
prime tenant been eligible for an award based on the entire floor area it leased from
the owner; and if such limitation applies, the awards shall be prorated based upon the
total floor area used and occupied by each eligible tenant;
(3) the relocation award shall become due and payable to an eligible tenant at the
time the eligible tenant (i) either purchases or leases other premises in accordance
with paragraph one of this subdivision, and (ii) certifies eligibility to, and demands
payment of, the award from the owner of the vacated building. If the relocation award
is not paid within thirty days of such certification and demand, interest shall accrue on
the relocation award from the date of the certification and demand at the rate of
twenty-four percent per annum;
(4) at any time after such certification and demand and prior to the date of the filing
of an application for tax exemption or abatement for the vacated building pursuant to
this section, an eligible tenant who has not received a relocation award shall have a
right to file a notice of claim. Such notice of claim shall be filed with the county clerk
of the county in which the vacated building is located and shall verify the claimant's
name, its compliance with eligibility requirements, the address of the vacated
premises, the floor area it occupied, the name of the prime tenant if the claimant is a
subtenant, and all the base rent that accrued and was paid by the claimant during the
final twenty-four months of its occupancy;
(5) a notice of claim, filed in accordance with paragraph four of this subdivision, may
be discharged by the filing of an undertaking with the clerk of the county in which the
premises are located in an amount equal to the amount claimed and in accordance
with the procedures set forth in subdivision four of section nineteen of the lien law, or
by the payment into court of such amount in accordance with the procedures set forth
in section fifty-five of such law;
(6) no tax exemption or abatement shall be granted pursuant to this section unless
the department of housing preservation and development receives an affidavit from
the applicant for benefits of this section which verifies that:
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(i) the applicant has caused to be published a notice in a newspaper of general

circulation within the city of New York, no later than sixty days prior to filing of an
application for tax exemption or abatement pursuant to this section, which
advises former tenants and subtenants of their rights pursuant to this subdivision;
and
(ii) no notice of claim has been filed or all claims have been released by the
claimants, or secured in accordance with the provisions of paragraph five of this
subdivision, or discharged as an improper claim by court order;
(7) the affidavit required pursuant to the provisions of paragraph six of this
subdivision shall be considered part of the application for benefits pursuant to this
section;
(8) if an eligible tenant has duly filed a notice of claim pursuant to paragraph four of
this subdivision and did not receive a relocation award as provided herein, it may
commence an action against any applicant who filed a false affidavit pursuant to
paragraph six of this subdivision or any security posted by such applicant pursuant to
paragraph five of this subdivision, within three years of such filing. In any action to
enforce a claim pursuant to this subdivision, if the court finds that the claimant has
wilfully exaggerated the amount of the claim, the claimant may be held liable in
damages for an amount not to exceed the proper relocation award. An eligible tenant
in whose favor a judgment is entered shall be entitled to costs and reasonable legal
fees and disbursements provided that such judgment is in excess of the amount
which the applicant or owner offered to pay the eligible tenant;
(9) any lease or other rental agreement provision exempting, waiving, releasing or
discharging the obligation to pay a relocation award pursuant to this subdivision shall
be void as against public policy and wholly unenforceable;
(10) the provisions of this subdivision shall not apply south of fifty-ninth street in the
county of New York if the zoning resolution of the city of New York expressly provides
for relocation loans and/or grants in lieu of the benefits of this subdivision.
aa. Harassment. (1) The provisions of this subdivision apply to and are additional
requirements for claiming or receiving:
(a) any tax exemption under this section; or
(b) any tax abatement under this section where the certified reasonable cost per
dwelling unit of the conversion, alteration or improvement (including the cost of any
conversion, alteration or improvement for which an abatement was approved within
four year, prior. to commencement of the conversion, alteration or improvement)
exceeds seven thousand five hundred dollars.
(2) The owner of the property shall file with the department of housing
preservation and development, not less than thirty days before the
commencement of the conversion, alteration or improvement (hereinafter
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referred to as the "cut-off date"), an affidavit, or, where any information referred
to in paragraph one of this subdivision changes prior to applying for or claiming
any benefit under this section, an amending affidavit, setting forth the following
information:
(a) every owner of record and owner of a substantial interest in the property
or entity owning the property or sponsoring the conversion, alteration or
improvement;
(b) a statement that none of such persons had, within the five years prior to
the cut-off date, been found to have harassed or unlawfully evicted tenants
by judgment or determination of a court or agency (including a nongovernmental agency having appropriate legal jurisdiction) under the penal
law, any state or local law regulating rents or any state or local law relating to
harassment of tenants or unlawful eviction; and
(c) any change in the information required to be set forth.
(3) No conversion, alteration or improvement subject to this subdivision shall be
eligible for tax exemption or tax abatement under this section where:
(a) any affidavit required under this subdivision has not been filed; or
(b) any such affidavit contains a willful misrepresentation or omission of any
material fact; or
(c) any person referred to in subparagraph (a) of paragraph two of this
subdivision has been found to have harassed or unlawfully evicted tenants as
described in that paragraph, until and unless the finding is reversed on
appeal, provided that any such finding after the cut-off date shall not apply to
or affect any tax abatement or exemption for the conversion, alteration or
improvement covered by the affidavit.
(4) The department of housing preservation and development and the department
of finance shall maintain a list of affidavits as described in paragraph two of this
subdivision. Each agency shall review that list with respect to each application or
claim for benefits subject to this subdivision.
(5) "Substantial interest' as used in subparagraph (a) of paragraph two of this
subdivision shall mean ownership of an interest of ten per centum or more in the
property or entity owning the property or sponsoring the conversion, alteration or
improvement.
(6) Where the conversion; alteration or improvement is commenced before
August first, nineteen hundred eighty-three, the cut-off date shall be as set forth
in this subdivision, but no affidavit shall be required to be filed until thirty days
after the effective date of this subdivision.
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bb. Notwithstanding any contrary provision of the private housing finance law, the
benefits of this section shall apply to any limited profit housing company as provided in
this section. Such multiple dwelling, building or structure shall be eligible for benefits
where at least one building-wide improvement or alteration is part of the application for
benefits. Furthermore, to the extent that such alterations or improvements are financed
with grants, loans or subsidies from any federal, state, or local agency or instrumentality,
such multiple dwelling, building or structure shall be eligible for benefits only if the limited
profit housing company has entered into a binding and irrevocable agreement with the
commissioner of housing of the state of New York, the supervising agency, as such term
is defined in section two of the private housing finance law, the New York city housing
development corporation, or the New York state housing finance agency prohibiting the
dissolution or reconstitution of such limited profit housing company pursuant to section
thirty-five of the private housing finance law for not less than fifteen years from the
commencement of benefits. The abatement of taxes on such property, including the land,
shall not be an amount greater than ninety per centum of the certified reasonable cost of
such alterations or improvements, as determined under regulations of the department of
housing preservation and development, nor greater than eight and one-third percent of
such certified reasonable cost in any twelve month period, nor be effective for more than
twenty years. The annual abatement of taxes in any twelve month period shall in no
event exceed fifty percent of the amount of taxes payable in such twelve month period
pursuant to the applicable exemption granted pursuant to article two of the private
housing finance law or other applicable laws or fifty percent of payments required to be
made in lieu of taxes in such twelve month period. Notwithstanding the foregoing, the
annual abatement of taxes for alterations or improvements commenced prior to June first,
nineteen hundred eighty-six may not be applied to reduce the amount of taxes payable or
the amount of payments required to be made in lieu of taxes in any twelve month period
to an amount less than the minimum amount of taxes required to be paid pursuant to
section thirty-three of the private housing finance law.
cc. The commissioner of the department of housing preservation and development and
the commissioner of the department of finance shall prepare an annual report which shall
be submitted to the Mayor and the council on or before the first day of July next
succeeding the year to which the report pertains, regarding the exemptions and
abatements granted pursuant to this section and shall include, but not be limited to the
following information: (i) the amount of real property tax that would have been paid in
the aggregate by the owners of real property granted an exemption or abatement if the
property were fully taxable and the amount of tax actually paid in the aggregate by such
owners, (ii) the geographic distribution of exemptions and abatements granted pursuant
to this section, and (iii) a distribution by type of eligible categories as delineated in
paragraphs. one: through nine of subdivision b of this section.
dd. Partial waiver of rent adjustments attributable to major capital improvements.
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(1) The provisions of this subdivision apply to and are additional requirements for
claiming or receiving any tax abatement under this section, except as provided in
paragraphs three and four of this subdivision.
(2) The owner of the property shall file with the department of housing preservation
and development, on the date any application for benefits is made, a declaration
stating that in consideration of any tax abatement benefits which may be received
pursuant to such application for alterations or improvements constituting a major
capital improvement, such owner agrees to waive the collection of a portion of the
total annual amount of any rent adjustment attributable to such major capital
improvement which may be granted by the New York state division of housing and
community renewal pursuant to the rent stabilization code equal to one-half of the
total annual amount of the tax abatement benefits which the property receives
pursuant to such application with respect to such alterations or improvements. Such
waiver shall commence on the date of the first collection of such rent adjustment,
provided that, in the event that such tax abatement benefits were received prior to
such first collection, the amount waived shall be increased to account for such tax
abatement benefits so received. Following the expiration of a tax abatement for
alterations or improvements constituting a major capital improvement for which a
rent adjustment has been granted by such division, the owner may collect the full
amount of annual rent permitted pursuant to such rent adjustment. A copy of such
declaration shall be filed simultaneously with the New York state division of housing
and community renewal. Such declaration shall be binding upon such owner, and his
or her successors and assigns.
(3) The provisions of this subdivision shall not apply to substantial rehabilitation of
buildings vacant when alterations or improvements are commenced or to buildings
rehabilitated with the substantial assistance of city, state or federal subsidies.
(4) The provisions of this subdivision shall apply only to alterations and improvements
commenced after its effective date.
ee. The department of housing preservation and development shall make information
relating to the provisions of this section available on the departments website, and shall
provide a contact phone number allowing tenants to determine benefits available
pursuant to this section. The department shall convene a task force that shall examine
and report on methods to improve the transparency of the program established pursuant
to this section.
FIISTORICAL NOTE
Section added chap 907/1985 ~ 1
Subd. a par 1 amended L.L. 74/2005 1, eff. Aug. 9, 2005.
Subd. a par 1 amended L.L. 1/2004 8, eff. Aug. 2, 2004.
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Subd. a par (8) added L.L. 49/1993 i eff. June 15, 1993
Subd. b amended L.L. 48/2013 1, eff. July 1, 2013 and deemed to have been
in full force and effect on and after Dec. 31, 2011. [See Note 2]
Subd. b amended L.L. 57/2007 1, eff. Dec. 5, 2007.
Subd. b amended L.L. 16/2003 ~ i, eff. Feb. 28, 2003.
Subd. b amended L.L. 72/1999 1, eff. Dec. 13, 1999.
Subd. b amended L.L. 49/1993 ~ 2 eff. June 15, 1993
Subd. b amended L.L. 41/1988 1
Subd. b par (6) amended L.L. 44/2001 2, eff. July 16, 2001. [See Note 1]
Subd. b-1 added L.L. 45/2004 1, eff. Oct. 14, 2004.
Subd. c par (1) amended L.L. 49/1993 3 eff. June 15, 1993
Subd. c par (1) amended L.L. 41/1988 2
Subd. c par (2) amended chap 702/1992 ~ 12 eff. Jan. 27, 1993
Subd. c par (3) amended chap 702/1992 13, eff. Tan. 27, 1993
Subd. c par (4) amended L.L. 49/1993 4 eff. June 15, 1993
Subd. c par (4) added L.L. 41/1988 3
Subd. d par (2) amended L.L. 41/1988 4
Subd. d par (3) amended L.L. 49/1993 5 eff. June 15, 1993
Subd. d par (3-a) added L.L. 15/2007 1, eff. Apr.17, 2007.
Subd. d par (3-b) added L.L. 50/2008 1, eff. Oct. 20, 2008.
Subd. d par (8) subpar.(a) clause (i)subclause (B) amended ch. 702l199Z 14,
eff. Jan. 27, 1993
Subd. d par (8) subpar (a) clause (i) subclause (C) amended L.L. 41/1988 7
Subd. d par (8) subpar (b) amended L.L. 41/1988 8
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Subd. d par (8) subpar (b) clause (ii) amended L.L. 49/1993 6 eff. June 15,
1993 Subd. d par (8) subpar (c) clause (i) amended L.L. 41/i9S8 9
Subd. d-1 added L.L. 24/1998 i, eff. July 6, 1998
Subd. f amended L.L. 48/2013 2, eff. July 1, 2013 and deemed to have been
Subd. f amended L.L. 49/1993 7 eff. ]une 15, 1993
Subd. f amended L.L. 41/1988 10
Subd. h amended L.L. 49/1993 8 eff. June 15, 1993
Subd. i par (5) subpar (i) amended L.L. 105/1993 i, eff. Dec. 28, 1993
Subd. i par (7) added L.L. 41/1988 11
Subd. i-1 added L.L. 48/2013 F3, eff. July 1, 2013 and deemed to have been
Subd. i-2 added L.L. 48/2013 3, eff. July 1, 2013 and deemed to have been
Subd. k amended L.L. 44/1993 1 eff. June 1, 1993
Subd. q amended L.L. 49/1993 ~ 9 eff. June 15, 1993
Subd. t amended L.L. 41/1988 12
Subd. x amended L.L. 49/1993 SO eff. June 15, 1993
Subd. bb amended L.L. 14/2007 i, eff. Apr. 17, 2007.
Subd. bb added L.L. 41/1988 13
Subd. cc added L.L. 41/1988 14
Subd. dd added L.L. 41/1988 15
Subd. ee added chap 4/2013 25, eff. Jan. 30, 2013 and deemed to have been
in full force and effect on and after June i, Z012. [See 11-1706 Note Z~
DERIVATION
Formerly J51-2.5 added LL 50/1960 ~ 1
Sub d amended LL 4/1961 1
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Subs c, j amended LL 73/1961 1

Sub b amended LL 52/1962 1
Sub c amended LL 52/1962 2
Sub i amended LL 52/1962 4
Renumbered chap 100/1963 1346
(formerly 741-2.5)
Subs d, g amended chap 100/1963 1346
Sub 9 amended LL 39/1963 1
Subs b, c, d amended LL 53/1968 1
Subs g, i amended LL 53/1968 2
Sub n amended LL 53/1968 3
Sub a par i amended LL 6/1970 1
Subs b, c, d amended LL 9/1971 1
Sub f amended LL 9/1971 2
Sub g repealed and added LL 9/1971 3
Sub h amended LL 9/1971 4
Sub i amended LL 9/1971 5
(Special provision federal mortgage insurance for 20 years LL 9/1971 7)
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Sub a pars 1, 2 amended LL 60/1975 i

Sub d pars 1, 2 amended LL 60/1975 4
(open par laid out)
Sub d par 3 amended LL 60/1975 5
Sub e designated &laid out LL 60/1975 5
(formerly sub d par 3 2nd unnumbered par)
Sub f amended LL 60/1975 ~ 6
Sub g first par amended LL 60/1975 6
Subs h, i amended LL 60/1975 6
Subs n, o added LL 60/1975 7
Sub p relettered LL 60/1975 8
(formerly sub n)
Subs q-u added LL 60/1975 9
Sub d par 3 amended LL 48/1976 ~ 1
Sub a par 1 amended LL 12/1978 1
Sub b amended LL 1Z/1978 2
Sub e amended LL 12/1978 5
Sub v relettered LL 12/1978 6
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(formerly sub e added LL 50/1960)

Sub g amended LL 12/1978 8
Sub h amended LL 12/1978 9
Sub i pars 1, 2, 3 amended LL 12/1978 10
Sub k amended LL 12/1978 11
Sub m amended LL iZ/1978 12
Sub p amended LL 1Z/1975 14
Sub q amended LL 12/1978 15
Sub s amended LL 12/1978 16
Sub u amended LL 12/1978 t 17
Sub w added LL 12/1978 18
Sub a pars 6, 7 added LL 77/1979 1
Sub a par i amended LL 77/1979 1
Sub d par 2 amended LL 77/1979 4
Sub I amended LL 77/1979 6
Sub v amended LL 77/1979 ~ 7
Sub x added LL 77/1979 8
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Sub y added LL 77/1979 9

Sub c amended LL 24/1981 ~ Z
Sub i par 2 amended LL 25/1981 1
Sub d pars 4, 5, 6, 7 added LL 38/1981 1
Sub i par 5 added LL 38/1981 2
Sub z added LL 40/1981 1
Sub b par 6 amended LL 44/1981 1
Subs b, c, q amended LL 29/1982 8
Sub d par Z amended LL 56/1983 3
Sub d par 8 added LL 56/1983 4
Sub as added LL 56/1983 5
Sub i par 6 added LL 56/1983 6
Sub c par 1 amended LL 71/1983 2
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Note
1.
Provisions of L.L. 44/2001 1:
Section 1. Legislative findings and intent. The Council finds that the mechanisms available
for conserving energy have changed in the last decade. In the past, conservation efforts
consisted of trying to reduce the amount of energy used. Toward this end we provided tax
benefits to master metered buildings, buildings where there was a single meter for the
whole building, to install separate meters for each unit, called submetering, thus
encouraging individuals to become conscience of their energy use and reduce their
electrical consumption. Recently, discussions of energy conservation have changed from
exclusively trying to reduce overall use, to also trying to shift use patterns from peak use
to off-peak use. This reduction is a valuable energy conservation measure in that by
reducing peak consumption the worst energy plants can eventually be retired and the
most expensive and dirty energy can be avoided. An effective tool in the reduction in
peak use is a pricing tool based on charging the most for electricity used during peak
periods. Buildings that are master metered, where there is one meter for the entire
building for which a utility company bills the building, pay for their electricity based on
this model of billing, by time of use. In buildings where each apartment is separately
metered and billed by the utility, called direct metering, the price is based exclusively on
the overall amount of electricity used, not when it is used. The Council finds that changing
from a system of direct metering, to a system where the electricity is charged based on
time of use (demand) is a useful conversion for the purposes of conservation where
strong tenant organizations are in place to monitor demand, educate and work with
tenants to reduce demand during peak periods. Toward this end, the Council further finds
that the City has a compelling interest in supporting buildings with strong tenant
organizations to convert to submetered systems. For the purposes of this section the
Council finds that cooperatives and condominiums have the greatest likelihood of having
the type of tenant organizations that would allow them to utilize this new technology to
reduce peak demand.
~ 4. This local law shall take effect immediately and shall be deemed to have been in full
force and effect on and after December 31, 2011, provided, however, that section four of
this local law shall not be deemed to change the eligibility for benefits, pursuant to such
section, as a result of conversions, alterations or improvements completed before
December 31, 2011.
Case Notes From Former Section
1. Petitioner was entitled to a tax abatement based upon the reasonable cost of
improvements and alterations where, when he had purchased afour-story building in
1965 the street level floor was occupied as a store and the upper three stories were
vacant and he remodeled the building so that it had modern apartments on the upper
three floors. The fact that building was not being used residentially immediately prior to
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renovation did not deprive it of its basic character as part commercial and part residential
property.Martell's Restaurant Corp. v. Housing and Devel. Administration, 64 Misc. 2d
991, 316 N.Y.S. 2d 340 [1970], aff'd, 323 N.Y.S. 2d 389 [A.D. 1971].
2. In determining the reasonable costs of alterations and improvements for tax
abatement purposes one of the factors that must be considered is the actual cost of the
particular alterations and improvements.Dueil v. Housing and Development
Administration, 40 A.D. 2d 803 (1972).
3. Denial by Housing and Development Administration of application for tax abatement
certificate based upon failure of petitioners to establish that resale of the stock of their
cooperatives at a profit was prohibited by their by-laws was not arbitrary where the
Administrator had imposed such a requirement as a condition precedent for tax
abatement.In re M.P.P.M.P. Realty Inc. (Housing and Development Administration) i71
(118) N.Y.LJ. (6-19-74) 2, Col. 3 F.
Case (dotes
~ 1. Petitioner is not qualified for tax exemption for the renovation of single room
occupancy (SRO) dwellings pursuant to NYC Ad CD )51-2.5 (J-51 program) as enabled
by Real Property Tax Law 489. 489 was amended by chap 401/1983 retroactive to
June 1, 1982 to prevent the loss of SRO housing and discourage precipitous eviction of
tenants. Petitioner was forewarned of retroactive expiration of State authorization and
questionable validity of )-51 program past June 1, 1982.Replan Dev. v. Dept. of Housing
Preserv. & Dev., 70 NY2d 451 X1987].
2. In 1982, NYC changed policies amending administrative code ]51-2.5(i)(6)[11243(i)(6)] to eliminate the JS1 property tax abatements for the conversion of SRO
dwellings to other uses. (Previously the city encouraged demolition and redevelopment
because many SRO units were substandard.)Replan Dev. v. Housing Preserv. Dept, 70
NY2d 451 [1987] held this change of policy constitutional. Seawall Assoc. v. City of NY,
142 AD2d 72 [1988].
3. The NY City Department of Housing Preservation &Developments (HPD)
determination that the reasonable cost of $422,540 certified in the 7anuary 29, 1985
Certificate of Eligibility issued to the petitioner be reduced to $196,200 based on the
auditor's findings will not be disturbed where petitioner failed to supply the necessary
documentation to HPD within a 16-month time period; pursuant to Ad Code 31-243,
the failure to prove the claimed costs in rehabilitating a building subjects the property to
a reduction or revocation of part and future J-51 benefits.l0 Argyle Realty Assoc. v. NYC
Dept of Housing Pres. & Dev. 160 AD2d 1003.
4: Pursuant to Y1-243 and the J-51 regulations HPD correctly and rationally
determined that certain items of renovation work that petitioner completed were ineligible
for ]-51 benefits and others had not been completed upon inspection by HPD. As a result
the certified reasonable cost per dwelling unit did not amount to $2,500 disqualifying
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project from expanded tax benefits of a "moderate rehabilitation."Acropolis Gardens

Realty v. DHPD, 175 AD2d 24Z [1991].
5. Petitioner received a "certificate of operation" for use of newly installed boiler/burner
equipment from the Department of Environmental Protection within the three-year
eligibility period, but did not receive a "sign-off" from the Department of Buildings until
after the three-year period had elapsed. Failure to obtain a DOB "sign-off" within the
three-year period was not a mere "minor technicality" in determining entitlement to J 51
benefits, 11-243(d)(3), under the Building Code 27-787 et seq and the air pollution
control provisions, 24-102 et seq only the DOB can certify that aboiler/burner meets
minimum standards of safety and is properly burning fuel, generating energy and
providing heat. Information submitted by cooperative conversion corporation to the
Department of Housing Preservation and Development failed to establish that roofing
work was completed within the three-year time limitation since, out of five checks
submitted two were postdated cancelled checks for 70% of work and included no late
payment fees. Petitioners claim for J 51 benefits under 11-243(d)(3) denied.31171
Owners Corp. v. DHPD, 190 AD2d 441 [1993].
q~ 6. In order to be entitled to a "J-S1" tax abatement, the applicant needs to obtain a
Certificate of Eligibility and Reasonable Cost from the New York City Department of
Housing Preservation and Development ("HPD"), and a certification from the Department
of Buildings ("DOB") that the premises were free from violations and the work was
satisfactorily performed. The HPD and DOB certifications are independent requirements.
Thus, the owner can seek the certificate from HPD even before it has obtained the
necessary certification from the DOB. Melohn v. New York City Department of Housing
Preservation and Development, 212 A.D.2d 380, 622 N.Y.S.2d 36 (1st Dept. 1995).
y~ 7. The principle of comity under the federal Tax Injunction Act, 28 U.S.C. 1341 barred
federal court jurisdiction over challenges to the administration of the ")-51" program. The
taxpayer was found to have adequate state law remedies available. Kraebel v. New York
City Department of Housing Preservation and Development, 959 F.2d 395 (2d Cir. 1992).
8. The landlord is required to complete the project within a 36 month period. The
regulations, which define the commencement of the 36 month period as being the date of
issuance of a permit by a City agency, create only an evidentiary presumption, which can
be rebutted by actual evidence of a different start date. In this case, the landlord argued
that the 36 month period should begin at the date of issuance of the permit, even though
the permit was issued eight months after the work actually began. The court, however,
upheld an agency determination that the 36 month period began at the time of actual
commencement of the work. Otherwise, the court said, an applicant would be able to take
as long as it wanted to complete the project through the simple expedient of delaying its
application for the necessary work permit, and thereby negate the statutory policy of
encouraging the swift upgrading of multiple dwellings. 275 Wesbster Tenants, Inc. v.
Wright, 238 AD2d 143; N.Y.L.7., Apr. 7, 1997, at 26, col. 4 (App.Div. 1st Dept.).
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9. See Spaeda v. Bakirjy, N.Y.L.J., Apr. 19, 2000, page 27, col. 6 (Civ. Ct. New York
Co.), under annotations to Admin. Code Z6, 504, regarding the rent stabilization
status of buildings whose owners received tax benefits under 11-243.
10. The federal Section 8 program (42 U.S.C. 1437 et seq.) does not pre-empt local
rent laws. Thus, landlords who wish to continue in the tax abatement programs of Sec.
11-243 must continue to offer Section 8 status to rent stabilized tenants who reside at
the premises. Landlords who accept the tax abatement program are required to offer
renewal leases, and are not permitted to discriminate against tenants based on Section 8
status. Rosario v. Diagonal Realty LLC, 9 Misc.3d 681, 803 N.Y.5.2d 343 (Sup.Ct. N.Y.
2005), aff'd 32 A.D.3d 739, 821 N.Y.5.2d 71 (1st Dept. 2006), aff'd 8 N.Y.3d 755, 840
N.Y.5.2d 748 (2007).
g~ 11. See Timkovsky v. 56 Bennett, PLC, reported under case note 133 Admin. Code 8-107.
12. Where a landlord chooses to take advantage of the J-51 tax abatement program
(Admin. Code i1-243, all rent stabilized apartments in the building are exempt from
luxury decontrol. The landlord unsuccessfully argued that the exemption from luxury
decontrol applied only to those apartments which became stabilized solely by reason of
the landlord's participation in the J-51 plan. Roberts v. Tishman Speyer Properties, 62
A.D.3d 71, 874 N.Y.5.2d 97 (1st Dept. 2009).
13. See Kosoglyadov v. 3130 Brighton Seventh LLC, 54 A.D.3d 822, 863 N.Y.5.2d 777
(2d Dept. 2008), reported under note 134, Admin. Code 8-107.
q~ 14. Petitioner-landlord established that the premises were subject to Rent Stabilization
because the respondent's tenancy began several years after the J-51 tax abatement
expired. Although the predecessor owner had conditionally agreed to provide respondent
with a rent stabilized lease to settle a prior eviction proceeding against a previous tenant,
this did not confer full stabilization protection upon respondent, based upon the
circumstances of this case. The court found that there was no indication that respondent
had complied with the non-monetary condition specified in the settlement stipulation and
the stipulating parties consistently treated respondents tenancy as unregulated by
entering into a series of unregulated lease and renewal agreements. Wassfam, LLC v.
Ude, 26 Misc.3d 90, 896 N.Y.S.2d 796 [N.Y.Sup.App.Term. 2009].
15. The Court of Appeals affirmed the Appellate Division's decision that the luxury
decontrol provisions of the Rent Stabilization Law (RSL)(Admin Code 26-504.1, 26504.2 [a]) did not apply to two sprawling residential apartment complexes in New York
City housing. Roberts v. Tishman Speyer Properties, 13 NY3d 270, 890 NYS2d 398
[2009]. The owners of those apartment complexes could not take advantage of the luxury
decontrol provisions of the Rent Stabilization Law (RSL) while simultaneously receiving
tax incentive benefits under the City of New York's J-51 program for rehabilitation and
major capital improvement and conversion projects, although the complexes were already
rent-stabilized at the time the owners first applied for and received J-51 benefits.
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16. In Roberts v. TIshman (13 NY3d 270, 890 NY52d 398 [2009] see 12 and 14,
supra), however, the Court of Appeals did not decide whether its decision should be
applied retroactively. Following the Court of Appeals decision, one of the defendants
(MetLife) brought a motion to dismiss, arguing that the decision should not be applied be
retroactively to any period during which MetLife had owned the property because it had
relied, in good faith, on an advisory letter issued by DHCR. The trial judge disagreed and
denied Met~ife's motion to dismiss. The court held that the Court of Appeals merely
interpreted the law, and did not change it. Roberts v. Tishman Speyer
Properties,Misc3d
NYU 8/6/10 page 43 (col. 1).
17. The Court of Appeals decision in Roberts v. Tishman Speyer Prop., L.P., 6Z A.D.3d
71, 874 N.Y.S.2d 97 (1st Dept. 2009, aff'd 13 N.Y.2d 270, 890 N.Y.S.2d 388 (2009) has
implications that extend far beyond the immediate parties to that case. In Gersten v. 56
7th Avenue, 88 A.D.3d 139, 928 N.Y.5.2d 515 (1st Dept. 2012) a tenant had a rent
stabilized apartment. The landlord obtained luxury decontrol of that apartment under an
order of the State Division of Housing and Community Renewal (DHCR), while still
receiving )-51 benefits. The tenant continued to occupy the apartment under a free
market rent lease. About ten years later, the current owner acquired the building. Then
the Roberts case came out and held that landlords who were currently receiving J-51
benefits could not obtain luxury decontrol of apartments. The tenant then claimed that
the luxury decontrol order of DHCR was invalid from the beginning and demanded
recovery of nearly S1 years of rent overcharges. The court agreed with the tenant that
Roberts was retroactive. It also agreed that the six-year statute of limitations was not a
bar against the tenant's recovery, since the tenant was claiming rights as a statutory
tenant, not rights under a contract. However, the tenant in Gersten was not entitled to a
rent reduction; the tenant was a party to the 1999 decontrol proceeding and had a full
and fair opportunity to contest luxury decontrol before the administrative agency.
Therefore, the tenants claim was barred by collateral estoppel.
18. In Tapia v. Successful Management Corp., 79 A.D.3d 422, 915 N.Y.5.2d 19 (1st
Dept. 2010), plaintiffs were long-time tenants who were recently approved for Section 8
benefits under 4Z U.S.C. 1437(f) and who sought to use Section 8 vouchers to pay a
portion of their rent. The court held that the tenants were protected by the "J-51" antidiscrimination statute and Local Law 10 of 2009 (Admin. Code 11-243(k) and 8-107
(5)). The plain language of the J-51 law prohibits a landlord receiving J-51 tax benefits
from "directly or indirectly" denying an apartment to people participating in Section 8.
The law covers prospective as well as current tenants, and includes tenants whose leases
do not require the landlords to accept Section 8 benefits. In addition, the court held that
focal Law 10 was not pre-empted by federal law. Moreover, Local Law 10 does not violate
the Urstadt Law (Unconsolidated Laws 8605) which was intended to prohibit attempts to
expand the set of 6uiidings subject to rent conErol or sta6ilization:Tfie landlord's
acceptance of Section 8 vouchers would have no impact in expending the buildings
subject to the rent stabilization law or expanding the regulation under the rent laws, and
thus does not offend the objective of the Urstadt law.
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19. In London Terrace Gardens, L.P. v. City of New York, 101 A.D.3d 27, 953 N.Y.5.2d
28 (lst Dept. 2012), a landlord sought to rescind its participation in the J-51 program
following the Court of Appeal decision in Roberts v. Tishman Speyer Properties, 13 N.Y.3d
270, 890 N.Y.S.2d 388 (2009). The Roberts decision held that owners of rent stabilized
apartments are not entitled to take advantage of the luxury decontrol provisions of the
rent stabilization law while simultaneously receiving J-51 tax benefits, so long as the tax
benefits had not expired. The landlord contended that when it applied for J-51 benefits
and the New York City Dept. of Housing Preservation and Development approved the
application, the parties were under a mutual mistake of fact, and that had the landlord
known that owners accepting J-51 benefits would be unable to use the luxury decontrol
portions of the rent stabilization law, it never would have applied for J-51 benefits. The
court, however, held that there was no provision in the J-51 law for unilateral withdrawal
from the program or for repaying the tax benefits in exchange for rescission from the
program Hunt pro tunc. On the contrary, 28 RCNY 5-03(f) provides that regulation
requirements will not be terminated by the waiver or revocation of tax benefits.
20. Sometimes, contracts for the sale of real estate can be impacted by subsequent
court decisions concerning the rent stabilization status of certain types of real estate. This
was the case in Latipac Corp. v. BMH Realty Corp., 93 A.D.3d 115, 938 N.Y.5.2d 30 (1st
Dept. 2012), leave to appeal dismissed 19 N.Y.3d 1099 (2012). Latipac entered into an
agreement for the purchase and sale of an apartment building for which the seller, BMH,
had been receiving J-51 tax benefits. The agreement included a representation by BMH,
that, as of its date, nine of the building's apartments were fair-market rental units. BMH
had deemed those units deregulated under the luxury decontrol provisions of the Rent
Stabilization Law. Before the transaction closed, the Court of Appeals decided Roberts v.
Tishman Speyer Prop., L.P., 62 A.D.3d 71, 874 N.Y.5.2d 97 (1st Dept. 2009, aff'd 13
N.Y.2d Z70, 890 N.Y.S.2d 388 (2009). The Roberts decision held that owners of rent
stabilized apartments are not entitled to take advantage of the luxury decontrol provisions
of the rent stabilization law while simultaneously receiving J-51 tax benefits, so long as
the tax benefits had not expired. Before Roberts was decided, the State Division of
Housing and Community Renewal (DHCR) had taken the position that luxury decontrol
was applicable to a building enjoying J-51 tax benefits so long as the units in the property
had not become subject to rent stabilization solely by virtue of the building's participation
in the ]-Si program. After Roberts was decided, the purchaser, Latipac, contended that
BMH was in breach of its representation in the agreement that the building contained nine
deregulated apartments (more than half of the apartments in the building), for which
market rentals could lawfully be charged. Latipac claimed that since BMH could no longer
deliver nine fair market units, BMH, at the very least, was required to refund the deposit.
The court, however, found that BMH was not required to refund the deposit. The
contractual representation that the building contained nine deregulated units was
accurate as of the date that the contract was made. The next question was whether the
seller or buyer bore the risk that a legal development would effect a change in the
regulatory status of those apartments during the interval between contracting and
closing; the court determined that the buyer bore that risk. Unless a contract for the sale
of real property expressly provides otherwise, the buyer bears the risk that the property's
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value will be reduced by a change in the law between the execution of the contract and
the closing. The court noted that even before the Court of Appeals made its decision,
earlier stages of Roberts had been the subject of considerable publicity. In other words,
the parties were likely aware of the possibility that it was going to be held that units
subject to J-S1 benefits would not be subject to luxury decontrol. Ultimately, Latipac was
stuck with nine units that would not get the benefit of luxury decontrol so long as the
building had J-51 tax benefits.
q~ 21. In Schiffren v. Lawlor, 955 N.Y.5.2d 44 (1st Dept. 2012), the tenant was rentstabilized when he first moved into the apartment. The owner subsequently obtained J-51
tax benefits, which have since expired. The court here had to decide whether a unit that
was subject to rent regulation before an owner received J-51 tax benefits can be subject
to luxury deregulation once those tax benefits expire. The court said that under the plain
language of Admin. Code 11-243 and 26-504, a building that is already regulated
when it receives J-51 benefits will continue to be regulated under the original rentregulation scheme when the tax benefits expire. The court held that the reversion to preJ-51 -benefit rent-regulation status includes the right of an owner to seek luxury
deregulation when the statutory requirements for regulation are met (income
requirement, etc.).
2Z. See 72A Assocs. v. Lucas, 3Z Misc.3d 47, 929 N.Y.S.2d 349 (App.Term 1st Dept.
2011), discussed in note 84 to Admin. Code. Sec. 26-504.
23. See RAM I, LLC v. N.Y. State Div. of Housing and Community Renewal, 123 A.D.3d
102, 993 N.Y.5.2d 706 (ist Dept. 2014), reported as Note 30 to Sec. 26-403.
~+ Annotations
Note
z.
Provisions of L.L. 48/2013:
Administrative Code of the City of New York

Copyright 2016 New York Legal Publishing Corporation a New York Corporation, All Rights Reserved
Footnotes
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gg ~ [Footnote 11]: *So in original. ("eight-two" s. b. "eighty-two").

8~
[Footnote 8]: *As in law.

Terms: 11-243
Narrow By: Sources: New York City Administrative Code Content Type: Municipal Codes
Date and Time: Feb 16, 2016 05:00:00 p.m. EST
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DOCUMENT 9
RPTL 489
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Paoe 1 of 26
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Exemptions
Article 4
Titie 2 Private Property
489. Exemption from taxation of alterations and

improvements to multiple dwellings to eliminate fire and
health hazards; abatement
1.
(a) Any city to which the multiple dwelling law is applicable, acting through its local
legislative body or other governing agency, is hereby authorized and empowered, to
and including January first, two thousand fifteen, to adopt and amend local laws or
ordinances providing that any increase in assessed valuation of real property shall be
exempt from taxation for local purposes, as provided herein, to the extent such
increase results from:
(1) conversion of buildings or structures on such property to class A multiple
dwellings not used in whole or in part for single room occupancy, including
conversion of residential units qualified for the protection of article seven-C of the
multiple dwelling law in buildings classified as interim multiple dwellings pursuant
to such article to units which are in compliance with the standards of safety and
fire protection set forth in article seven-B of the multiple dwelling law or to units
whidt have a cerlificale of occupancy as class A rnultiplc clwellinys; or
(2) alterations or improvements, including as improvements asbestos abatement
to the extent such asbestos abatement is required by federal, state or local law,
on such property to eliminate unhealthy or dangerous conditions or to replace
inadequate and obsolete sanitary facilities, any of which represent fire or health
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hazards, in any existing class A multiple dwellings or buildings consisting of one or

two dwelling units over space used for commercial occupancy, except insofar as
the gross cubic content of the building is increased thereby; or
(3) alterations or improvements on such property which are designed to
conserve the use of fuel, electricity or other such energy sources in any dwellings
or other buildings or structures described in clause one or two of this paragraph;
or
(4) alterations or improvements to the exterior walls of dwellings or other
buildings or structures on such property in order to comply with any provision of
law regulating dwellings, buildings, or structures that are in an area designated as
an historic or landmark area or that are designated as historic or landmark
buildings or structures; or
(5) alterations or improvements constituting a moderate rehabilitation of a
substantially occupied class A multiple dwelling within a city having a population
of one million or more as certified by the local housing agency pursuant to local
law or rules and regulations; or
(6) alterations or improvements constituting a substantial rehabilitation of a
class A multiple dwelling or a conversion of a building or structure into a class A
multiple dwelling as part of a program to provide housing for low and moderate
income households as defined by the local housing agency pursuant to rules and
regulations, provided that such alterations or improvements or conversions shall
be aided by a grant, loan or subsidy from any federal, state or local agency or
instrumentality, including, in the discretion of the local housing agency, a subsidy
in the form of a below market sale.
Such conversion, alterations or improvements shall be completed within thirty
months after the date on which same shall be started except that such thirty
month limitation shall not apply to conversions of residential units which are
registered with the loft board in accordance with article seven-C of the multiple
dwelling law pursuant to subparagraph one of this paragraph. Notwithstanding the
foregoing, a sixty month period for completion shall be available for alterations or
improvements undertaken by a housing development fund company organized
pursuant to article eleven of the private housing finance law, which are carried
out with the substantial assistance of grants, loans or subsidies from any federal,
state or local governmental agency or instrumentality or which are carried out in
a property transferred from such city if alterations and improvements are
completed within seven years after the date of Transfer. In addition, the local
housing agency is hereby empowered to grant an extension of the period of
completion for any project carried out with the substantial assistance of grants,
loans or subsidies from any federal, state or local governmental agency or
instrumentality, if such alterations or improvements are completed within sixty
months from commencement of construction. Provided. further, that such
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conversion, alterations or improvements shall in any event be completed prior to

June thirtieth, two thousand fifteen. Exemption for conversions, alterations or
improvements pursuant to subparagraph one, two, three or four of this paragraph
shall continue for a period not to exceed fourteen years and begin no sooner than
the first quarterly tax bill immediately following the completion of such
conversion, alterations or improvements. Exemption for alterations or
improvements pursuant to this subparagraph or subparagraph five of this
paragraph shall continue for a period not to exceed thirty-four years and shall
begin no sooner than the first quarterly tax bill immediately following the
completion of such alterations or improvements. Such exemption shall be equal to
the increase in the valuation which is subject to exemption in full or proportionally
under this subdivision for ten or thirty years, whichever is applicable. After such
period of time, the amount of such exempted assessed valuation of such
improvements shall be reduced by twenty percent in each succeeding year until
the assessed value of the improvements are fully taxable. Provided, however,
exemption for any conversion, alterations or improvements which are aided by a
loan or grant under article eight, eight-A, eleven, twelve, fifteen or twenty-two of
the private housing finance law, section six hundred ninety-six-a or section
ninety-nine-h of the general municipal law, or section three hundred twelve of the
housing act of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the CranstonGonzalez national affordable housing act (42 U.S.C.A. 12701 et. seq.), or started
after July first, nineteen hundred eighty-three by a housing development fund
company organized pursuant to article eleven of the private housing finance law
which are carried out with the substantial assistance of grants, loans or subsidies
from any federal, state or local governmental agency or instrumentality or which
are carried out in a property transferred from any city and where alterations and
improvements are completed within seven years after the date of transfer may
commence at the beginning of any tax quarter subsequent to the start of such
conversion, alterations or improvements and prior to the completion of such
conversion, alterations or improvements.
(b) Any city to which the multiple dwelling law is not applicable, acting through its
local legislative body or other governing agency, is hereby authorized and
empowered, to and including June first, nineteen hundred seventy-two, to adopt and
amend local laws or ordinances providing that any increase in assessed valuation
resulting from alterations and improvements to eliminate presently existing unhealthy
or dangerous conditions in any multiple dwellings occupied, as a rule, for permanent
residence purposes or to replace inadequate and obsolete sanitary facilities any of
which represent fire or health hazards, in such dwellings except insofar as the gross
cubic content of the building is increased thereby, shall he exempt from taxation for
local purposes for a period not to exceed twelve years after the taxable status date
immediately following the completion thereof, provided that the alterations or
improvements for which the benefits of any such law or ordinance are claimed were
started after March first, nineteen hundred sixty-two, and completed within two years
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from the date on which they were started and in any event prior to December thirtyfirst, nineteen hundred seventy-four.
1-a. Notwithstanding the provisions of subdivision one of this section, alterations,
improvements or conversions of any building or structure that are eligible for benefits
pursuant to paragraph (a) of subdivision one of this section except insofar as the gross
cubic content of such building or structure is increased thereby shall be eligible for such
benefits insofar as the gross cubic content of such building or structure is increased
thereby provided that:
(a) for all tax lots now existing or hereafter created, at least fifty percent of the floor
area of the completed building or structure consists of the pre-existing building or
structure that was converted, altered or improved in accordance with paragraph (a) of
subdivision one of this section, and
(b) for tax lots in the city of New York now existing or hereafter created within the
following area in the borough of Manhattan, such conversions, alterations or
improvements are aided by a grant, loan or subsidy from any federal, state or local
agency or instrumentality: beginning at the intersection of the United States pierhead
line in the Hudson river and the center line of Chambers street extended, thence
easterly to the center line of Chambers street and continuing along the center line of
Chambers street to the center line of Centre street, thence southerly along the center
line of Centre street to the center lire of the Brooklyn Bridge to the intersection of the
Brooklyn Bridge and the United States pierhead line in the East river, thence northerly
along the United States pierhead line in the East river to the intersection of the United
States pierhead line in the East river and the center line of One Hundred Tenth street
extended, thence westerly to the center line of One Hundred Tenth street and
continuing along the center line of One Hundred Tenth street to its westerly terminus,
thence westerly to the intersection of the center line of One Hundred Tenth street
extended and the United States pierhead line in the Hudson river, thence southerly
along the United States pierhead line in the Hudson river to the point of beginning.
For purposes of this subdivision, "floor area" shall have the same meaning as in
paragraph b of subdivision one of section four hundred twenty-one-a of this title.
Nothing in this subdivision shall be construed to provide benefits pursuant to
subdivision two of this section for the costs attributable to the increased cubic content
in any such building or structure.
(a) With respect to conversions, alterations or improvements eligible to receive the

benefits of subdivision one of this section, any such local law or ordinance may also
provide that the duration and amount of abatement of taxes on such property,
including the land, may be separetely established for each of the categories of
eligibility described in paragraph a of subdivision one of this section, provided that:
(1) except as provided in subparagraphs two and three of this paragraph, the
annual abatement of taxes on such property, including the land, shall not be an
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amount greater than eight and one-third per centum of the total cost of such
conversion, alterations or improvements nor shall the abatement exceed the total
cost of such conversions, alterations or improvements or be effective for more
than twenty years and the annual abatement of taxes in any consecutive twelvemonth period shall in no event exceed the amount of taxes payable in such
twelve-month period;
(2) in the case of alterations or improvements (i) pursuant to subparagraph five
of paragraph (a) of subdivision one of this section which are carried out with the
substantial assistance of grants, loans or subsidies from any federal, state or local
agency or instrumentality or any not-for-profit philanthropic organization one of
whose primary purposes is providing low or moderate income housing or financed
with mortgage insurance by the New York city residential mortgage insurance
corporation or the state of New York mortgage agency or pursuant to a program
established by the federal housing administration for rehabilitation of existing
multiple dwellings in a neighborhood strategy area as defined by the United
States department of housing and urban development, or (ii) pursuant to
subparagraph six of paragraph (a) of subdivision one of this section the
abatement of taxes on such property, including the land, shall not exceed one
improvements, as determined under regulations of the local housing agency
administering the local law, and the annual abatement of taxes shall not exceed
twelve and one-half per centum of such certified reasonable cost, provided that
such abatement shall not be effective for more than twenty years and the annual
abatement of taxes in any consecutive twelve-month period shall in no event
exceed the amount of taxes payable in such twelve-month period; or
(3) in the case of alterations or improvements carried out with the substantial
assistance of grants, loans or subsidies from any federal, state or local agency or
instrumentality or any not-for-profit philanthropic organization one of whose
primary purposes is providing low or moderate income housing, or financed with
mortgage insurance by the New York city residential mortgage insurance
corporation or the state of New York mortgage agency or pursuant to program
established by the federal housing administration for rehabilitation of existing
multiple dwellings in a neighborhood strategy area as defined by the United
States department of housing and urban development where such alterations or
improvements are done on property located in census tracts in which seventy-five
percent or more of the population live in households which earn fifty percent or
less of the median household income of the city in which such census tracts are
located, the abatement of taxes on such property, including the land, shall not
exceed one hundred fifty per centum of the certified reasonable cost of the
alterations or improvements, as determined under regulations of the local housing
agency administering the local law, and the annual abatement of taxes shall not
exceed twelve and one-half per centum of such certified reasonable cost, provided
that such abatement shall not be effective for more than twenty years and the
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annual abatement of taxes in any consecutive twelve-month period shall in no

event exceed the amount of taxes payable in such twelve month period.
(b) Such abatement:
(1) shall begin no sooner than the first quarterly tax bill immediately following
the completion of such conversion, alterations or improvements, or
(2) in the case of any such conversion, alterations or improvements (i)
completed after December thirty-first, nineteen hundred seventy-five and aided
by a loan under article eight of the private housing finance law, or (ii) started
after July first, nineteen hundred seventy-seven and aided by a loan under article
fifteen of the private housing finance law, or (iii) started after July first, nineteen
hundred eighty and aided by a loan under article eight-A of the private housing
finance law or (iv) started after July first, nineteen hundred eighty and aided by a
loan under section three hundred twelve of the housing act of nineteen hundred
sixty-four (4Z U.S.C.A. i452b), or (v) started after 7uly first, nineteen hundred
ninety-two and aided by a loan or grant under article eleven, twelve, or twentytwo of the private housing finance law, section six hundred ninety-six-a or section
ninety-nine-h of the general municipaliaw, or the Cranston-Gonzalez national
affordable housing act (42 U.S.C.A. 12701 et. seq.), or (vi) started after July first,
nineteen hundred eighty-eight by or on behalf of a company not qualifying under
any of the above provisions which is anot-for-profit corporation qualified
pursuant to section 501(c)(3) of the Internal Revenue Code and which has
entered into a regulatory agreement with the local housing agency requiring
operation of the property as housing for low and moderate income persons and
families; may be commenced at the beginning of any tax quarter subsequent to
the start of such conversion, alterations or improvements and prior to the
completion of such conversion, alterations or improvements.
3. Any such local law or ordinance may also provide that where the improvements and
alterations include or benefit that part of a building which is not occupied for dwelling
purposes, the increase in assessed valuation and the cost of the alteration shall be
apportioned so that the benefits of the local law or ordinance shall not be provided for
improvements or alterations made for other than dwelling purposes.
4. Any such local law or ordinance may also provide that its benefits shall not become
available to any multiple dwelling, building or structure as provided in paragraph (a) of
subdivision one of this section unless and until such multiple dwelling, building or
structure as provided in paragraph (a) of subdivision one of this section complies with the
applicable provisions of law. Any such law or ordinance may make provision as to the
date as of which particular improvements and alterations shall be deemed to have been
completed or commenced therefor, as the case may be, for the purpose of qualifying for
the benefits thereof. Any such local law or ordinance may make provision authorizing the
adoption of rules and regulations by the local agencies of government for the effectuation
of the purposes of this section. Any such local law or ordinance shall provide that the
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benefits of this section shall apply to any multiple dwelling, building or structure as
provided in paragraph (a) of subdivision one of this section, which (i) is operated
exclusively for the benefit of persons or families who are entitled to occupancy by reason
of ownership of stock or membership in the corporate owner, or for the benefit of such
persons or families and other persons or families entitled to occupancy under applicable
provisions of law without ownership of stock or membership in the corporate owner, or
(ii) is owned as a condominium and is occupied as the residence or home of three or more
families living independently of each other; provided, however, that any such law or
ordinance shall make provision, in addition to all other conditions of eligibility for the
benefits of this section, except for multiple dwellings in which units have been newly
created by substantial rehabilitation of vacant buildings or conversions of non-residential
buildings, that the availability of benefits under this section for such multiple dwellings,
buildings or structures shall be conditioned on the following: (1) any items of work
designated as a major capital improvement in the rules adopted by the local housing
agency or asbestos abatement to the extent such asbestos abatement is required by
federal, state or local law, and (2) (i) the assessed valuation of such multiple dwelling,
building, or structure, including land, shall not exceed an average of forty thousand
dollars per dwelling unit at the time of the commencement of the alterations or
improvements, and (ii) the average per room sale price of the dwelling units or the stock
allocated to such dwelling units shall have been no greater than thirty-five percent of the
maximum mortgage amount for a single family home eligible for purchase by the Federal
National Mortgage Association during the three years immediately preceding the
commencement of the alterations or improvements; provided that if less than ten percent
of the dwelling units or an amount of stock less than the amount allocable to ten percent
of such dwelling units was not transferred during such preceding three year period,
eligibility for benefits shall be conditioned upon the multiple dwelling, building, or
structure having an assessed valuation per dwelling unit of no more than forty thousand
dollars at the time of the commencement of the alteration or improvements.
Notwithstanding the foregoing, such local law shall also provide benefits under this
section for work completed in any such multiple dwelling, building or structure within the
first three years of its conversion to cooperative or condominium ownership, as evidenced
by the date on which the first closing in a condominium to a bona fide purchaser occurs or
in the case of a cooperative, the date on which the shares allocable to a unit are
conveyed to a bona fide purchaser. Any such local law shall also limit the maximum
amount of tax abatement which may be received in any tax period under this section by
any such multiple dwelling, building or structure for any alterations and improvements
commenced three years or more after its initial conversion to cooperative or condominium
ownership to an amount not in excess of two thousand five hundred dollars per dwelling
unit of the certified reasonable cost of the alterations or improvements as determined
under regulations of the local housing agency administering the local law. Any such local
law may also require such certifications and consents to access to records, including other
tax records, as may be deemed appropriate to enforce such conditions of eligibility. Any
such local law or ordinance shall provide that the local agencies of government shall
establish maximum dollar limits for specified items of cost for any conversion, alterations
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or improvements. No costs in excess of such maximum dollar limits shall be considered in

determining the benefits of this section.
4-a. Notwithstanding any contrary provision of subdivision four of this section, any such
local law or ordinance shall provide that the availability of benefits under this section to
any multiple dwelling, building or structure owned and operated by alimited-profit
housing company established pursuant to article two of the private housing finance law
shall not be conditioned upon the assessed valuation of such multiple dwelling, building or
structure, including land, as calculated as an average dollar amount per dwelling unit, at
the time of the commencement of the alterations or improvements; provided, however,
that such limited-profit housing company (a) is organized and operating as a mutual
company,(b) continues to be organized and operating as a mutual company and to own
and operate the multiple dwelling, building or structure receiving such benefits, and (c)
has entered into a binding and irrevocable agreement with the commissioner of housing
of the state of New York, the supervising agency, the New York city housing development
corporation, or the New York state housing finance agency prohibiting the dissolution or
reconstitution of such limited-profit housing company pursuant to section thirty-five of the
private housing finance law for not less than fifteen years from the commencement of
such benefits. For the purposes of this subdivision, the terms "mutual company" and
"supervising agency" shall have the same meanings as set forth in section two of the
private housing finance law.
4-a-1. Notwithstanding any contrary provision of subdivision four of this section, any
such local law or ordinance shall provide that the availability of benefits under this section
to any multiple dwelling, building or structure owned and operated by a redevelopment
company established pursuant to article five of the private housing finance law shall not
be conditioned upon the assessed valuation of such multiple dwelling, building or
structure, including land, as calculated as an average dollar amount per dwelling unit, at
the time of the commencement of the alterations or improvements: provided, however,
that such redevelopment company (a) is organized and operating as a mutual
redevelopment company,(b) continues to be organized and operating as a mutual
redevelopment company and to own and operate the multiple dwelling, building or
structure receiving such benefits, and (c) has entered into a binding and irrevocable
agreement with the commissioner of housing and community renewal, the supervising
agency, the New York city housing development corporation, or the New York state
housing finance agency prohibiting the dissolution or reconstitution of such
redevelopment company pursuant to section one hundred twenty-three of the private
housing finance law until the earlier to occur of: (i) in fifteen years from the
commencement of such benefits, or (ii) the expiration of any tax exemption granted to
such redevelopment company pursuant to section one hundred twenty-five of the private
housing finance law. For the purposes of this subdivision, Che leans "rnulual" and
"supervising agency" shall have the same meanings as set forth in section one hundred
two of the private housing finance law.
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4-b. Notwithstanding any contrary provision of the private housing finance law, any such
local law shall provide that the benefits of this section shall apply to any limited profit
housing company as provided in this section. In addition to the limitations set forth in
subdivision eleven of this section, such multiple dwelling, building or structure shall be
eligible for benefits only where at least one building wide improvement or alteration is
part of the application for benefits. Furthermore, to the extent that such a/terations or
improvements are financed with grants, loans or subsidies from any federal, state, or
local agency or instrumentality, such multiple dwelling, building or structure shall be
eligible for benefits only if the limited profit housing company has entered into a binding
and irrevocable agreement with the commissioner of housing of the state of New York,
the supervising agency, as such term is defined in section two of the private housing
finance law, the New York city housing development corporation, or the New York state
housing finance agency prohibiting the dissolution or reconstitution of such limited profit
housing company pursuant to section thirty-five of the private housing finance law for not
less than fifteen years from the commencement of such benefits. The abatement of taxes
on such property, including the land, shall not be an amount greater than ninety per
centum of the certified reasonable cost of such alterations or improvements, as
determined under regulations of the local housing agency administering the local law, nor
greater than eight and one-third percent of such certified reasonable cost in any twelve
month period, nor be effective for more than twenty years. The annual abatement of
taxes in any twelve month period shall in no event exceed fifty percent of the amount of
taxes payable in such twelve month period pursuant to the applicable exemption granted
pursuant to article two of the private housing finance law or other applicable laws or fifty
percent of payments made in lieu of taxes in such twelve month period.
4-c.
(a) Any such local law may also provide that a group of multiple dwellings which was
developed as a planned community and which is owned as two separate
condominiums containing a total of ten thousand or more dwelling units shall be
eligible for tax exemption and abatement as provided in this subdivision.
(b) Any increase in assessed valuation resulting from alterations or improvements to
one or more multiple dwellings in a planned community described in paragraph (a) of
this subdivision shall be exempt from taxation for local purposes. Such exemption
shall be equal to the increase in the valuation which is subject to exemption under
this paragraph for thirty years. After such period of time, the amount of such
exempted assessed value shall be reduced by twenty percent in each succeeding year
until the assessed value of the alterations or improvements is fully taxable. Such
exemption may commence at the beginning of any tax quarter subsequent to the
start of such alterations or improvements. In no event shall such alterations or
improvements directly or indirectly result in an equalization increase in the assessed
valuation of any multiple dwelling forming part of the planned community where such
alterations or improvements are performed.
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(c) The abatement of taxes on a planned community described in paragraph (a) of

this subdivision, including the land, shall not exceed the greater of (i) one hundred
fifty per centum of the certified reasonable cost of the alterations or improvements,
as determined under the regulations of the local housing agency administering the
local law, and (ii) the construction cost of the alterations or improvements identified
in such regulations. Such abatement shall not be effective for more than twenty years
and the annual abatement of taxes in any consecutive twelve-month period shall not
be greater than ten per centum of the total abatement granted and shall not exceed
the amount of taxes payable in such consecutive twelve-month period. Such
abatement shall begin no sooner than the first quarterly tax bill immediately following
the completion of such alterations or improvements. The limitations set forth in
subdivision four of this section for multiple dwellings, buildings and structures owned
as condominiums shall be inapplicable to benefits granted pursuant to this
subdivision. Abatement benefits granted pursuant to this subdivision shall be
apportioned among all of the condominium tax lots within the condominium in which
the alterations or improvements are made, although such alterations or
improvements may have been made to one or fewer than all of the multiple dwellings
therein.
(d) In the event that multiple alterations or improvements are undertaken in a
planned community described in paragraph (a) of this subdivision and separate
applications for benefits therefor are made, all requirements concerning physical
condition of and compliance with law by the multiple dwellings in such planned
community shall apply only upon completion of all such alterations or improvements,
provided that all such alterations or improvements are completed within six years.
(e) Except as provided in this subdivision, all of the requirements imposed by this
section on projects described in paragraph (a) of subdivision one of this section shall
be applicable to alterations or improvements granted benefits pursuant to this
subdivision.
(f) This subdivision shall be applicable only to alterations or improvements
completed prior to December thirty-first, two thousand five.
5. To the end that conversions, alterations, and improvements aided by this section shall
interfere as little as practicable with urgently needed public improvements or the
clearence, rehabilitation, or rebuilding of substandard and unsanitary areas, and shall be
confined to multiple dwellings, buildings or structures as provided in paragraph (a) of
subdivision one of this section which are structurally sound, such local law or ordinance
may provide that exemption or abatement from taxation hereunder shall be restricted to
multiple dwellings, buildings or structures as provided in paragraph (a) of subdivision one
of this section (a) which the local planning commission in any such city shall certify will
not interfere with projected public improvements or the clearance and rebuilding of
substandard and insanitary areas, and (b) which the local building department certifies to
be structurally sound and (c) which, if in an area approved for clearance, replanning,
reconstruction or neighborhood rehabilitation pursuant to chapter eight hundred eighty-
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seven of the laws of nineteen hundred forty-five, as from time to time amended, or if in
an area designated for studies, tests, demonstrations and other activities for the
prevention and elimination of slums and urban blight pursuant to chapter six hundred
eight of the laws of nineteen hundred fifty-six as from time to time amended, or if in an
area for which a preliminary or final plan has been approved pursuant to chapters six
hundred eighty-eight of the laws of nineteen hundred fifty-seven or nine hundred twentyfour of the laws of nineteen hundred fifty-eight, as from time to time amended, or chapter
nine hundred seventy-one of the laws of nineteen hundred sixty, or if in an area for which
an urban renewal plan or tests, studies or demonstrations have been approved pursuant
to article fifteen of the general municipal law, is certified by the project board for the area
as a dwelling which is to be or has been improved in conformity with such replanning,
reconstruction, neighborhood improvement, studies, tests, demonstrations or plan.
6. Notwithstanding the provisions of the multiple dwelling law, multiple residence law,
and any local law, ordinance, rule or regulation, any city to which this section is applicable
acting through its local legislative body may provide, in a manner that shall be uniform as
to any particular type or class of multiple dwelling, building or structure as provided in
paragraph (a) of subdivision one of this section, that, any multiple dwelling, building or
structure as provided in paragraph (a) of subdivision one of this section to which
alterations and improvements are made pursuant to this section and which did not
require a certificate of occupancy on April second, nineteen hundred forty-five, and, in the
case of multiple dwellings, buildings or structures as provided in paragraph (a) of
subdivision one of this section to which the multiple residence law is applicable, on July
first, nineteen hundred fifty-two, may not be occupied lawfully after such date upon the
completion of such alterations and improvements without a certificate of occupancy.
7. Any local law or ordinance may also provide any or all of the following
{a) The benefits of this section shall not apply to any multiple dwelling, building or
structure as provided in paragraph (a) of subdivision one of this section in which
rents, subsequent to alterations and improvements, shall exceed such amount, if any,
as may be fixed by the local legislative body or by the municipal agency designated
by the local legislative body of the municipality involved, based upon a standard
formula.
~u~
(1) The benefits of this section shall not apply to any multiple dwelling, building
or structure as provided in paragraph (a) of subdivision one of this section which
is not subject to the provisions of the emergency housing rent control law or to
local law enacted pursuant to the local emergency housing rent control act, where
the local legislative body or other governing agency of the municipality involved
shall prescribe that the benefits herein provided shall not apply to such multiple
dwelling, building or structure as provided in paragraph (a) of subdivision one of
this section provided that such local legislative body or other governing agency
shall not use the authority conferred in this paragraph (b) to rescind any benefits
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granted under former section five-h of the tax law prior to July first, nineteen
hundred fifty-eight; and further provided that where the benefits provided herein
or under such former section five-h of the tax law are granted or had been
granted on or after July first, nineteen hundred fifty-eight, to any multiple
dwelling, building or structure which is decontrolled subsequent to the granting of
such benefits, the local legislative body or other governing agency may withdraw
such benefits from such dwelling.
(2) Any dwelling unit subject to rent regulation on or before the effective date of
this subparagraph as a result of receiving a tax exemption or abatement pursuant
to this section shall be subject to such regulation until the occurrence of the first
vacancy of such unit after such benefits are no longer being received at which
time such unit shall be deregulated or if each lease and renewal thereof for such
unit for the tenant in residence at the time of the expiration of the tax benefit
period has included a notice in at least twelve point type informing such tenant
that the unit shall become subject to deregulation upon the expiration of such tax
benefit period and states the approximate date on which such tax benefit period is
scheduled to expire, such dwelling unit shall be deregulated as of the end of the
tax benefit period; unless such unit would have been subject to regulation under
the rent stabilization law of nineteen hundred sixty-nine or the emergency tenant
protection act of nineteen seventy-four.
(c) The benefits of this section shall apply to any multiple dwelling, building or
structure as provided in paragraph (a) of subdivision one of this section occupied, as
a rule, for permanent residence purposes and which is not used in whole or in part for
single room occupancy and which is not subject to the provisions of the emergency
housing rent control law or to local law enacted pursuant to the local emergency
housing rent control act, provided that it is located within an area which has been
designated by the local planning commission under the provisions of section seventytwo-m of article fifteen of the general municipal law or where a program of local
neighborhood improvement or housing maintenance is being carried out under the
supervision or with Fhe assistance of the local government and provided that the rents
or carrying charges, subsequent to alterations and improvements,(1) shall not
exceed such amount, if any, as may be fixed by the local legislative body or by the
municipal agency designated by the local legislative body of the municipality involved,
based upon a standard formula, or (2) where the local legislative body so provides,
shall not exceed such amount, if any, as may be fixed for such multiple dwelling,
building or structure as provided in paragraph (a) of subdivision one of this section
pursuant to any local law enacted pursuant to the local emergency housing rent
control act, and further provided that prior to such alterations and improvements, the
multiple dwelling, building or structure as provided in paragraph (a) of subdivision
one of this section, if a multiple dwelling, was either a multiple dwelling occupied, as a
rule, as a temporary or transient residence or occupied, as a rule, for permanent
residence purposes and used in whole or in part for single room occupancy.
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(d) The benefits of this section shall apply to any building or structure as provided in
paragraph (a) of subdivision one of this section, provided that the rents or carrying
charges subsequent to conversion (i) shall not exceed such amount, if any, as may
be fixed by the local legislative body or by the municipal agency designated by the
local legislative body of the municipality involved, based upon a standard formula, or
(2) where the local legislative body so provides, shall not exceed such amount, if any,
as may be fixed for such dwelling pursuant to any local law enacted pursuant to the
local emergency housing rent control act.
8. Notwithstanding any other provision of this section the benefits of this section shall
not apply to any private dwelling unless it is in an area defined by clause (c) of
subdivision five of this section and is certified by the project board for the area as a
dwelling which is to be or has been improved in conformity with such replanning,
reconstruction, neighborhood improvement, studies, tests, demonstrations or plan.
Notwithstanding the foregoing, for purposes of this section and any local law enacted
pursuant hereto a class A multiple dwelling may be deemed to include any garden-type
maisonette dwelling project consisting of a series of dwelling units which together and in
their aggregate were arranged or designed to provide three or more apartments and are
provided as a group collectively with all essential services such as, but not limited to,
water supply, house sewers and heat, and which are in existence and operated as a unit
under single ownership on the date upon which an application for the benefits of this
section is received by the city, even though certificates of occupancy were issued for
portions thereof as private dwellings.
8-a. Notwithstanding the provisions of subdivision eight of this section to the contrary,
unless excluded by local law, the benefits of this section may apply to: (i) alterations or
improvements to any private dwelling; (ii) conversion of any private dwelling to a multiple
dwelling; or (iii) conversion of any multiple dwelling to a private dwelling, provided that
such alterations, improvements or conversion are part of a project which has applied for
or is receiving benefits pursuant to this section and shall be aided by a grant loan, or
subsidy from any federal, state, or local agency or instrumentality.
(a) During the period of such exemptions the assessment on any such land and
dwelling after such alterations and improvements, exclusive of the increase in
valuation which is subject to exemption in full or proportionally under subdivision one
of this section, shall not exceed the valuation of the previously existing dwelling
appearing on the assessment rolls after the taxable status date immediately
preceding the commencement of such alterations and improvements plus the value of
the land, any improvements other than those made under the provisions of this
section and the proportion of increased assessed valuation that is not exempt from
taxation under this section, which proportion shall remain constant during the term of
the exemption. Where the alteration or improvement qualifies under subparagraph
two of paragraph (a) of subdivision two of this section or under clause (A) or (B) of
subparagraph one of paragraph (a) of subdivision eleven of this section, the
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exemption shall also include an exemption from taxation for local purposes for twelve
years upon that portion of the assessment, if any, which exceeds the transition
assessment, as defined in subdivision two of section eighteen hundred five of this
chapter, in effect at the time of the commencement of the exemption hereunder.
(b) Notwithstanding the provisions of paragraph (a) of this subdivision, except as
provided in subparagraph three of this paragraph, for buildings in which alterations,
improvements or conversions qualifying for an exemption under this section are
commenced on or after the date on which this paragraph becomes a law:
(1) The assessed value of the building during the period of the exemption shall
be pro-rated between the exempt and taxable portions of the building assessment
so that throughout the exemption period the exempt portion of the building
assessment shall bear the same relationship to the non-exempt portion of the
building assessment as it did on the final tax roll on which an exemption was first
available to such building for alterations or improvements made pursuant to this
section or on the last tax roil on which such ratio was changed by reason of
additional improvements, whichever results in the greatest percentage of exempt
assessed valuation; provided, however, that increases in building value due to (i)
additional improvements that do not qualify for an exemption under this section,
(ii) increases in the value of non-residential portions of the building, or (iii) nonexempt additions to cubic content shall not be pro-rated, but shall be fully
taxable.
(2) Reductions in the assessed value of the building during the period of the
exemption shall be pro-rated between the taxable and exempt portions of the
building assessment in the proportion which was established pursuant to
subparagraph one of this paragraph on the final tax roll for the first fiscal year for
which an exemption was granted pursuant to this section, or on the last tax roll
on which such ratio was changed by reason of additional improvements, whether
exempt or non-exempt, or due to changes in the assessed value of fully taxable
space. In no case, however, shall the value of an exemption granted pursuant to
this section be reduced during the period for which such exemption was granted,
by reason of a reduction in the assessed value of the building, to an amount less
than the amount of exemption appearing on the first tax roll following the grant of
this exemption.
(3) During the first three years of such exemptions, the assessment on any such
land and dwelling shall be determined in accordance with paragraph (a) of this
~.T.ft~1~Cd~
10. In cities with a population of one million or more, any such local law or ordinance
may require that, prior to application for any tax exemption or abatement pursuant to this
section, relocation awards be paid to certain displaced manufacturing and other tenants
under the terms and conditions set forth below:
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(a) Relocation awards for certain tenants of non-residential buildings. Such local law
or ordinance shall limit eligibility for such a relocation award to former tenants and
former subtenants of premises in anon-residential building which is the subject of an
application for an alteration permit for conversion to a class A multiple dwelling, who:
(1) leased and used the vacated premises to conduct a manufacturing,
warehousing, or wholesaling business for not less than two consecutive years
immediately prior to vacating;
(2) vacated such premises on or after April first, nineteen hundred eighty-one
for any reason other than eviction for non-payment of rent;
(3) vacated such premises (i) no earlier than twenty-four months prior to the
filing date of an application for such alteration permit and (ii) no later than the
completion of the conversion as evidenced by the issuance of a permanent
certificate of occupancy for a class A multiple dwelling;
(4) either purchased or leased for a term of not less than eighteen months other
premises within such city with a floor area not less than one-third of the floor area
of the vacated premises;
(5) relocated their business to such other premises within one year of vacating
the vacated premises; and
(6) paid all commercial rent or occupancy tax for the vacated premises. A
subtenant shall be eligible to receive a relocation award notwithstanding any lack
of eligibility of its prime tenant.
(b) Amount of relocation award. The relocation award shall not exceed the greater of
(1) all the base rent that accrued and was paid by the eligible tenant during the final
twenty-four months of its occupancy of the vacated premises or (Z) four dollars for
each square foot that the eligible tenant occupied in the vacated premises during the
final twenty-four months of its occupancy of the vacated premises. As used in this
subdivision, base rent shall be calculated in the same manner as base rent is
calculated for purposes of commercial rent or occupancy tax in the city of New York,
or in any such city. However, the aggregate award payable to a prime tenant and any
subtenants of such prime tenant shall not exceed the amount which would have been
payable to the prime tenant had the prime tenant been eligible for an award based on
the entire floor area it leased from the owner; and if such limitation applies, the
awards shall be prorated based upon the total floor area used and occupied by each
eligible tenant.
(c) Payment of award. The relocation award shall become due and payable to an
eligible tenant at the time the eligible tenant either purchases or leases other
premises in accordance with paragraph (a) above within such city and certifies
eligibility to and demands payment of the award from the owner of the vacated
building. If the relocation award is not paid within thirty days of such certification and
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demand, interest shall accrue on the relocation award from the date of certification
and demand at the rate of twenty-four percent per annum.
(d) Notice of claim. At any time after such certification and demand and prior to the
date of the filing of an application for tax exemption or abatement for the vacated
building pursuant to this section, an eligible tenant who has not received a relocation
award shall have a right to file a notice of claim. Such notice of claim shall be filed
with the county clerk of the county in which the vacated building is located and shall
verify the claimant's name, its compliance with eligibility requirements, the address of
the vacated premises, the floor area it occupied, the name of the prime tenant if the
claimant is a subtenant, and all the base rent that accrued and was paid by the
claimant during the final twenty-four months of its occupancy.
(e) Discharge of notice of claim. A notice of claim may be discharged by filing an
undertaking with the clerk of the county in which the premises are located in an
amount equal to the amount claimed in accordance with the procedures set forth in
subdivision four of section nineteen of the lien law, or by payment into court of such
amount in accordance with the procedures set forth in section fifty-five of the lien law.
(f) Affidavit and notice as a condition to tax benefits. No tax exemption or
abatement shall be granted pursuant to this section unless the local municipal agency
responsible for administering this section receives an affidavit from the applicant
which verifies that:
(1) the applicant has caused to be published a notice in a newspaper of general
circulation within the city, no later than sixty days prior to filing of an application
for tax exemption or abatement pursuant to this section, which advises former
tenants and subtenants of their rights pursuant to any local law or ordinance
enacted pursuant to this subdivision; and
(2) no notice of claim has been filed or all claims have been released by the
claimant, secured in accordance with the provisions of paragraph (e) of this
subdivision, or discharged as an improper claim by a court order.
(g) Action on claim. If an eligible tenant or subtenant has duly filed a notice of claim
pursuant to this subdivision and does not receive a relocation award as provided
herein, it may commence an action against any applicant who filed a false affidavit
pursuant to paragraph (f) of this subdivision within three years of such filing or any
security posted by such applicant pursuant to paragraph (e) of this subdivision. In
any action to enforce a claim pursuant to this subdivision, if the court finds that the
claimant has wilfully exaggerated the amount of the claim, the claimant may be held
liable in damages for an amount not to exceed the proper relocation award. An
eligible tenant in whose favor a judgment is entered shall be entitled to costs and
reasonable legal fees and disbursements provided that such judgment is in excess of
the amount which the applicant or owner offered to pay the eligible tenant.
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(h) Waiver. Any lease provision exempting, releasing or discharging the obligation to
pay a relocation award pursuant to this subdivision shall be deemed to be void as
against public policy and wholly unenforceable.
(i) Local zoning resolution. The provisions of this subdivision ten shall not apply if
the local zoning resolution expressly provides for relocation loans and/or grants in lieu
of the benefits of this subdivision.
il. Limitations of benefits.
(a) Applicability. The provisions of this subdivision apply to all conversions,
alterations and improvements under this section. However, they shall not apply to:
(1) alterations or improvements under subparagraph two, three or four of
paragraph (a) of subdivision one of this section, where carried out:
(A) with the substantial assistance of grants, loans or subsidies from any
federal, state or local agency or instrumentality, or any not-for-profit
philanthropic organization one of whose primary purposes is providing low or
moderate income housing; or
(B) with mort9a9e insurance by the New York city residential mortgage
insurance corporation or the state of New York mortgage agency; or
(C) in a neighborhood preservation area, as such areas were designated by
the New York city planning commission as of June first, nineteen hundred
eighty-three, provided that such area or part of such area wherein the
property is located has been approved as provided herein by the city council
of the city of New York. No such area or part thereof shall be approved by the
city council until notice of the area or part thereof proposed to be approved is
submitted to every community board with jurisdiction over the area or part
thereof, and (i) every such community board has made and submitted to the
city council comments as to the proposed approval, or (ii) forty-five days have
elapsed since such notice was submitted to such community boards,
whichever is earlier; and
(D) pursuant to a program established by the federal housing administration,
federal national mortgage association, federal home loan mortgage
corporation or government national mortgage association for the rehabilitation
of existing multiple dwellings for persons of low or moderate income, or a
program of mortgage insurance for the rehabilitation of existing multiple
dwellings pursuant to section two hundred twenty-three-f of the national
housing act as amended, or a program of mortgage insurance established by
the federal housing administration for the rehabilitation of existing multiple
dwellings for persons of low or moderate income; provided that properties
receiving benefits under such programs are located in a neighborhood
strategy area, as defined, by the United States department of housing and
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urban development, or a neighborhood preservation area, as such areas were

designated by the New York city planning commission, as of June first,
nineteen hundred eighty-three.
(2) alterations or improvements under subparagraphs five and six of paragraph
(a) of subdivision one of this section; or
(2-a) Conversion of buildings or structures to class A multiple dwellings pursuant
to subparagraph one of paragraph (a) of subdivision one of this section, where
such conversions are undertaken by anot-for-profit philanthropic organization or
undertaken on properties which receive mortgage insurance from the New York
city residential mortgage insurance corporation, or state of New York mortgage
agency, provided that such property is (i) located in a neighborhood preservation
area as such areas were designated by the city planning commission on June first,
nineteen hundred eighty-three, and (ii) such property has been vacant since
January first, nineteen hundred eighty-two, and (iii) prior to becoming vacant
such property was last utilized for governmental, educational, hospital or nursing
home purposes.
(3) conversions of residential units qualified for the protection of article seven-C
of the multiple dwelling law under subparagraph one of paragraph (a) of
subdivision one of this section.
(b) Abatement limitations. The amount of abatement under subdivision two of this
section shall not exceed the certified reasonable cost of the conversion, alteration or
improvement, as determined under regulations of the local housing agency
administering the local law, provided that the amount of certified reasonable cost
eligible for abatement under this section shall not exceed fifteen thousand dollars for
a dwelling unit of three and one-half rooms and a comparable amount for dwelling
units of other sizes, under regulations of the local housing agency, and further
provided that the amount of certified reasonable cost eligible for abatement under this
section may exceed fifteen thousand dollars or such comparable amount per dwelling
unit, but not more than twenty-five percent above such amount, upon application of
the property owner and a determination by the housing agency that:
(1) in the case of a conversion under subparagraph one of paragraph (a) of
subdivision one of this section, the increased cost is necessary to comply with
applicable law; or
(2) in the case of an alteration or improvement under subparagraph two of
paragraph (a) of subdivision one of this section, the increased cost is necessary to
eliminate the unhealthy or dangerous conditions or replace the inadequate and
obsolete facilities in a satisfactory manner; or
(3) in the case of an alteration or improvement under subparagraph three of
paragraph (a) of subdivision one of this section, the increased cost is necessary to
conserve energy in a satisfactory manner; or
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(4) in the case of an alteration or improvement under subparagraph four of

paragraph (a) of subdivision one of this section, the increased cost, to the extent
such cost is not offset by any and all tax credits received as a result of the
alteration or improvement, is necessary to comply with any provision of law
regulating historic or landmark buildings or structures.
(b-1) For the purpose of the abatement limitations contained in the opening
paragraph of paragraph (b) of this subdivision, the number of rooms in a dwelling unit
shall be calculated in the following manner: Each dwelling unit with at least one room
which either (1) contains no cooking facilities and measures at least one hundred fifty
square feet, or (2) contains cooking facilities and measures at least two hundred
thirty square feet, shall count as two and one-half rooms. Every other room in the
dwelling unit separated by either walls or doors, including bedrooms, shall count as
an additional room, provided, however, that kitchens, cooking facilities, bathrooms,
corridors or balconies shall not count as an additional room. To be included, a room
must meet the requirements of habitability as provided in the relevant housing
maintenance code.
(c) Exemption limitations.
(1) The increase in assessed valuation of the real property located in the
borough of Manhattan south of or adjacent to the south side of one hundred tenth
street resulting from the conversion, alteration or improvement under paragraph
(a) of subdivision one of this section, shall be exempt from taxation as provided in
this section, only to the extent provided in this subparagraph. The amount of the
increased assessed valuation that is exempt from taxation shall depend on the
amount of the total assessed valuation per dwelling unit calculated by dividing the
amount of the total assessed valuation of the property, as determined under this
chapter, by the number of dwelling units in the building after completion of the
conversion, alteration or improvement. The amount of increased assessed
valuation that will be exempt from taxation for buildings with total assessed
valuation per dwelling unit of less than thirty-eight thousand dollars shall be
calculated pursuant to the following formula:(A) any portion of total assessed
valuation of the property attributable to the first eighteen thousand dollars of total
assessed valuation per dwelling unit, to the extent it represents increased
assessed valuation, shall be one hundred percent exempt; (B) any portion of total
assessed valuation attributable to the next four thousand dollars of total assessed
valuation per dweliin9 unit, to the extent it represents increased assessed
valuation, shall be seventy-five percent exempt; (C) any portion of total assessed
valuation attributable to the next four thousand dollars of total assessed valuation
per dwelling unit, to the extent it represents increased assessed valuation, shall
be fifty percent exempt;(D) any portion of total assessed valuation attributable to
the next four thousand dollars of total assessed valuation per dwelling unit, to the
extent it represents increased assessed valuation, shall be twenty-five percent
exempt; (E) any portion of total assessed valuation attributable to the next eight
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thousand dollars of total assessed valuation per dwelling unit, to the extent it
represents increased assessed valuation per dwelling unit, shall be fully taxable.
Property with a total assessed valuation per dwelling unit of thirty-eight thousand
dollars or more shall not be eligible for a tax exemption under this section.
(2) In calculating the amount of increased assessed valuation that will be
exempt from taxation pursuant to the formula in subparagraph one of this
paragraph, the full amount of total assessed valuation that does not represent
increased assessed valuation shall be applied in such formula prior to the
inclusion of any amount of increased assessed valuation.
(3) Where the real property is occupied in par[ for residential purposes and in
part for non-residential purposes, the assessed valuation of the property shall be
appropriately allocated between the residential and non-residential portions. In
computing the total assessed valuation per dwelling unit under this paragraph,
only the amount of valuation so allocated to the residential portion shall be
considered.
(4) Commencing with the assessment roll for the year nineteen hundred eightyfour, where there has been a change in the Ievel of assessment from the
assessment roll of the prior year of properties receiving exemptions under this
section, the local agency responsible for assessment of real property may petition
the commissioner to certify the percentage of such change for the purposes of
this section. In such petition, the local agency shall submit such information as
the commissioner shall require in order to certify the percentage of such change.
The commissioner may also make such a certification on its own motion. Upon
receipt of such certification from the commissioner, the local housing agency may
modify the dollar values of total assessed valuation per dwelling unit in
subparagraph one of this paragraph to reflect the percentage change in the level
of assessment as shown in such certification. As used in this subparagraph, the
term ~~change in the level of assessment" means the net increase or decrease in
the assessed valuation of properties in the assessing unit that received
exemptions under this section in the current year as compared to those that
received exemptions under this section in the prior year as a result of assessing
such properties at a higher or lower ratio of full value.
(5)
(A) Notwithstanding the provisions of subparagraph one of this paragraph,
the local housing agency may reduce or remove the limitations on the
exemption from taxation provided in such subparagraph with respect to a
particular property undergoing alteration or improvement, upon application of
the property owner and a determination by the agency that:
(i) The increased benefit will increase the number of dwelling units or
improve the quality of dwelling units that will be affordable to persons of
low or moderate income; and
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(ii) The increased benefit is necessary to make economically viable the

increase in the number of dwelling units or improvement in the quality of
dwelling units that will be affordable to persons of low or moderate
income.
(B) As used in this subparagraph, the term persons of low or moderate
income shall be persons who would qualify for housing subsidies pursuant to
section two hundred thirty-five of the national housing act, as amended, at
one hundred thirty-five percent of the income limitations provided herein.
(C) Upon receiving an application under this subparagraph in proper form,
the local housing agency shall immediately submit it to the community board
for the area in which the project is located, which may, within forty-five days
of receiving it and after a public hearing, make recommendations to the
agency as to the application. The agency shall act on the application within
sixty days of receiving it from the property owner in proper form, but not
before expiration of the time for the community board to make its
recommendations, unless the board has acted sooner.
(d) The local housing agency may set forth preliminarily the terms of a
determination under paragraph (b) or (c) of this subdivision prior to the
commencement of the conversion, alteration or improvement. Any such determination
shall take effect after completion of the work.
(e) Publication of local housing agency determinations. Any determination of the
local housing agency to increase an abatement under paragraph (b) of this
subdivision or to reduce or remove the exemption limitations under paragraph (c) of
this subdivision shall state the basis for the determination and the data on which the
determination was based. Such determination shall be published in the official
publication of the city, or if no such publication exists in a newspaper with general
circulation in the city, for five consecutive days after the determination is rendered.
(f) Proration of assessed valuation. Notwithstanding the provisions of paragraph (b)
of subdivision nine of this section, the provisions of this paragraph shall apply to
changes in assessments resulting from conversion, alterations or improvements which
are not subject to the abatement or exemption limitations of paragraphs (b) and (c)
of this subdivision. During the period of such exemptions the assessment on any such
land and dwelling after such alterations and improvements, exclusive of the increase
in valuation which is subject to exemption in full or proportionally under subdivision
one of this section, shall not exceed the valuation of the previously existing dwelling
appearing on the assessment rolls after the taxable status date immediately
preceding the commencement of such alterations and improvements plus the value of
the land, any improvements other than those made under the provisions of this
section and the proportion of increased assessed valuation that is not exempt from
taxation under this section, which proportion shall remain constant during the term of
the exemption. Where the alteration or improvement qualified under subparagraph
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two of paragraph (a) of subdivision two of this section or under clause (A) or (B) of
subparagraph one of paragraph (a) of this subdivision, the exemption shall also
include an exemption from taxation for local purposes for twelve years upon that
portion of the assessment, if any, which exceeds the transition assessment, as
defined in subdivision two of section eighteen hundred five of this chapter, in effect at
the time of commencement of the exemption hereunder.
12. Harassment.
(a) The provisions of this subdivision apply to and are additional requirements for
claiming or receiving:
(1) any tax exemption under this section; or
(2) any tax abatement under this section where the certified reasonable cost per
dwelling unit of the conversion, alteration or improvement (including the cost of
any conversion, alteration or improvement for which an abatement was approved
within four years prior to commencement of the conversion, alteration or
improvement) exceeds seven thousand five hundred dollars.
(b) The owner of the property shall, not less than thirty days before the
commencement of the conversion, alteration or improvement (hereinafter referred to
as the "cut-off date"), file with the local housing agency administering the local law,
an affidavit or, where any information referred to in subparagraph one of this
paragraph changes prior to applying for or claiming any benefit under this section, an
amending affidavit, setting forth the following information:
(1) every owner of record and owner of a substantial interest in the property or
entity owning the property or sponsoring the conversion, alteration or
improvement;
(2) a statement that none of such persons had, within the five years prior to the
cut-off date, been found to have harassed or unlawfully evicted tenants by
judgment or determination of a court or agency (including anon-governmental
agency having appropriate legal jurisdiction) under the penal law, any state or
local law regulating rents or any state or local law relating to harassment of
tenants or unlawful eviction; and
(3) any change in the information required to be set forth.
(c) No conversion, alteration or improvement subject to this subdivision shall be
eligible for tax exemption or tax abatement under this section where:
(1) any affidavit required under this subdivision has not been filed; or
(2) any such affidavit contains a willful misrepresentation or omission of any
material fact; or
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(3) any person referred to in subparagraph one of paragraph (b) of this

subdivision has been found to have harassed or unlawfully evicted tenants as
described in that paragraph, until and unless the finding is reversed on appeal,
provided that any such finding after the cut-off date shall not apply to or affect
any tax abatement or exemption for the conversion, alteration or improvement
covered by the affidavit
(d) The local housing agency administering this law and the local government
agency responsible for real property tax assessment shall maintain a list of affidavits
as described in paragraph (b) of this subdivision. Each agency shall review that list
with respect to each application or claim for benefits subject to this subdivision.
(e) "Substantial interest" as used in subparagraph one of paragraph (b) of this
subdivision shall mean ownership of an interest of ten per centum or more in the
property or entity owning the property or sponsoring the conversion, alteration or
improvement.
(f) Where the conversion, alteration or improvement is commenced before August
first, nineteen hundred eighty-three, the cut-off date shall be as set forth in this
subdivision, but no affidavit shall be required to be filed until thirty days after the
effective date of this subdivision.
13. Additional limitation. The benefits of this section shall not apply to any conversion of
or alteration or improvement to any class B multiple dwelling or class A multiple dwelling
used in whole or in part for single room occupancy, regardless of the status or use of the
building after the conversion, alteration or improvement unless such conversion,
alteration or improvement is carried out with the substantial assistance of grants, loans or
subsidies from any federal, state or local agency or instrumentality.
14. Conversion of properties to residential use. The benefits of this section shall not
apply to any conversion of property to residential use where the conversion was contrary
to the applicable zoning resolution and was permitted only by virtue of a variance as to
use, unless the local law is amended to explicitly provide that benefits shall be available in
such cases. The provisions of this subdivision do not apply to conversions of residential
units qualified for the protection of article seven-C of the multiple dwelling law under
subparagraph one of paragraph (a) of subdivision one of this section.
15. Authority of city Yo limit local law. Where a city enacts or amends a local law under
this section, the local law may restrict, limit or condition the eligibility, scope or amount of
the benefits under the local law in any manner, provided that the local law may not grant
benefits beyond those provided in this section.
16. Institutional lenders; cost certification. The rules of the local housing agency
administering such local law or ordinance shall make provision for circumstances in which
an institutional mortgage lender (as defined in such rules) which has provided financing
for alterations or improvements to a building or structure and has become a successor in
interest (as defined in such rules) to the original owner of such building or structure, after
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diligent efforts to obtain original contracts, checks and other records normally reviewed
by such agency to verify claimed costs, is unable to obtain part or all of such records.
Under such circumstances the rules shall permit substitution in whole or in part, as the
case may be, of documentation certified by the lender showing the amounts advanced by
the lender pursuant to the mortgage loan to finance such alterations or improvements,
along with such other documentation as the agency may require.
17.
(a) For purposes of this subdivision, "substantial governmental assistance" shall
mean:
(i) grants, loans or subsidies from any federal, state or local agency or
instrumentality in furtherance of a program for the development of affordable
housing approved by the local housing agency, including, without limitation,
financing or insurance provided by the state of New York mortgage agency of the
New York city residential mortgage insurance corporation; or
(ii) a written agreement between a housing development fund corporation and
the local housing agency limiting the incomes of persons entitled to purchase
shares or rent housing accommodations therein.
(b) Any local law or ordinance providing for benefits pursuant to this section must
also provide the following with respect to conversions, alterations or improvements
completed on or after December thirty-first, two thousand eleven:
(i) except as otherwise provided in this section with respect to multiple
dwellings, buildings and structures owned and operated either by limited-profit
housing companies established pursuant to article two of the private housing
finance law or redevelopment companies established pursuant to article five of
the private housing finance law, or with respect to a group of multiple dwellings
that was developed as a planned community and that is owned as two separate
condominiums containing a total of ten thousand or more dwelling units, any
multiple dwelling, building or structure that is owned as a cooperative or a
condominium that has an average assessed value of thirty thousand dollars or
more per dwelling unit shall only be eligible for such benefits if the alterations or
improvements for which such multiple dwelling, building or structure has applied
for the benefits pursuant to this section were carried out with substantial
governmental assistance; and
(ii) no benefits pursuant to this section shall be granted for the conversion of
any non-residential building or structure into a class A multiple dwelling unless
such conversion was carried out with substantial governmental assistance.
18. Any local law or ordinance providing for benefits pursuant to this section must also
provide, with respect to conversions, alterations or improvements for which application
was made after the effective date of this subdivision, that if such conversions, alterations
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or improvements are not completed on the date upon which such local housing agency
inspects the items of work claimed in such application, the local housing agency shall
require the applicant to pay two times the actual cost for any additional inspections
needed to verify the completion of such conversion, alteration or improvement.
19. The revocation of benefits granted to any multiple dwelling, building or structure
pursuant to this section shall not exempt any dwelling unit therein from continued
compliance with the requirements of this section or of any local law or ordinance
providing for benefits pursuant to this section.
20. Notwithstanding the provisions of any general, special or local law or any local
ordinance providing for benefits pursuant to this section the department may require that
the applications for exemption or abatement under this section that are filed on or after a
date specified in such local law or ordinance be filed electronically.
History
Add, L 1960, ch 968, 1; amd, L 1961, ch 756, 1; L 1962, ch 814, 1-3; L 1962, ch 815,
3 1, eff April 24, 1962; L 1962, ch 817, 1, 2; L 1963, ch 1002, ; L 1964, ch 683, F 1
-5; L 1965, ch 705, 1; L 1966, ch 847, 1-5; L 1967, ch 701, 1-6; L 1970, ch 375,
1, eff May 1, 1970; L 1973, ch 409, 1; L 1975, ch 852, 1, 2; L 1977, ch 850, i-3; L
1979, ch 680, i, 2; L 1980, ch 89, 5; L 1980, ch 849, 1; L 1983, ch 401, i-6; L
1983, ch ch 797, 1; L 1955, ch 235, 6, eff June 30, 1985, deemed eff June 19, 1985 (see
1985 note below); L 1985, ch 289, Z, eff June 30, 1985, deemed eff June 19, 1985 (see
1985 note below); L 1987, ch 794, 1-8 (see 1987 note below); L 1987, ch 795, 1, 2; L
1992, ch 702, 8-11, eff Jan 27, 1993; L 1992, ch 802, t 1-5, eff Aug 7, 1992; add, L
1997, ch 540, 1, eff Sept 3, 1997; L 1997, ch 599, 1, eff Sept 17, 1997; L 1998, ch 246,
~ 1, 2, eff July 7, 1998; L 2002, ch 418, 1, 2, eff Aug 13, 2002; L 2003, ch 450, i, eff
Aug 26, 2003; L 2003, ch 490, 1, 2, eff Sept 9, 2003; L 2005, ch Z75, 1, eff July 19,
2005; L 2005, ch 279, 1, eff 7uly 19, 2005; L 2006, ch 244, 1, eff July 26, 2006; L 2008,
ch 383, 1, eff July Z1, 2008; L 2010, ch 56, 1 (Part W), eff June 22, ZO10; L 2013, ch 4,
1-3, eff ]an 30, 2013, deemed eff on and after Dec 31, 2011 (see 2013 note below); amd,
L 2015, ch 20, Fj 19, 20 (Part A), eff June 26, 2015.
s Annotations

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Terms: NY CLS Rptl 489
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DOCUMENT 10
TITLE 28 RCNY,CHAPTER 5(J-51)
~~~
Section 5-01: Scope and Construction.
Page 1 of I

Home > Section 5-Ot: Scope and Construction.

Tit_I_e 28: Department of Housinq Preservation and Development ~,> > Chapter 5: J51
Tax Exemption and Tax Abatement n~
(a) Scope. This chapter governs the granting of tax exemption and tax abatement
pursuant to 489 of the Real Property Tax Law of the State of New York, 11-243,
formerly J51-2.5 of the Administrative Code of the City of New York, and Chapter 61 of
the New York City Charter, including the procedure for filing an application for tax
exemption and tax abatement and the issuance of Certificates of Eligibility and
Reasonable Cost by the Office of Tax Incentive Programs of the Department of Housing
Preservation and Development.
(b) Construction. This chapter is to be construed to secure the effectuation of the
purposes of 489 of the Real Property Tax Law and 11-243 of the Administrative Code
and in accordance with the general principal of law that exemption statutes are strictly
construed against the taxpayer applying for the exemption. Except as hereinafter
provided, this chapter, as amended, applies to all applications pending on or submitted
after the effective date.
Source URL: http://rules.citvofnewyork.us/contenVsection-5-01-scope-and-construction
Links:
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2/16/2016
Section 5-02: Definitions.
Page 1 of 8

Home > Section 5-02: Definitions.

Title 28: Department of Housing Preservation and Development ~,> > Chapter 5: J51
Tax Exemption and Tax Abatement ~,~
As used in this chapter, the following terms have the meanings indicated below.
Act. "AcY' means 11-243 of the Administrative Code as amended.
Administrative Code."Administrative Code" means the Administrative Code of the City
of New York, as amended.
Alterations or improvements. "Alterations" or "improvements" means only those
physical changes to an existing dwelling set forth in 5-08.
Attorney General. "Attorney General" means the Attorney General of the State of New
York.
Bedroom. "Bedroom" means any living room as defined in 27-2004 of the Housing
Maintenance Code and 4 of the Multiple Dwelling Law, after excluding the primary living
room and the kitchen, except as provided in 5-03(e)(2)(ii) and in 5-03(e)(2)(iv).
Building. "Building" means a complete or substantially complete permanent
improvement for occupancy or use within prior to the commencement of construction of
alterations, improvements or conversion, provided such improvement is permanently
affixed to the land, and that such improvement, exclusive of the land, has an assessed
valuation of more than one thousand dollars ($1,000) for the fiscal year immediately
preceding the commencement of construction, provided that such assessed valuation test
shall not apply to alterations, improvements or conversions is carried out with substantial
governmental assistance.
Certificate of Eligibility and Reasonable Cost. "Certificate of Eligibility and
Reasonable Cost" means the certificate issued by the Office pursuant to 5-05(g)(3).
Certified reasonable cost or CRC. "Certified reasonable cosy' or "CRC" means the
cost of a conversion or alterations or improvements certified by the Office to be eligible for
the benefits of the Act pursuant to the procedures set forth in this chapter, as evidenced
by the issuance by the Office of a "Certificate of Eligibility and Reasonable Cost."
City. "City" means the City of New York.
Class A multiple dwelling. "Class A multiple dwelling" means a Class A multiple
dwelling as defined in 4 of the Multiple Dwelling Law, and shall include agarden-type
maisonette dwelling project as defined below. A "Class A multiple dwelling used for single
room occupancy" means a dwelling occupied pursuant to 248 of the Multiple Dwelling
Law.
Class B multiple dwelling. "Class B multiple dwelling" means a Class B multiple
dwelling as defined in 4 of the Multiple Dwelling Law.
Commencement of construction.(a) For. work requiring a permit,"commencement of
construction" means:
(1) the date of issuance of a permit by the Department of Buildings, or
(2) if physical alterations commenced prior to obtaining a required building permit, the
actual start date, or
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(3) for projects eligible pursuant to 5-03(a)(1), (3), (4), (9) or (10), the actual
commencement of construction in good faith based on prior issuance of a permit by the
Department of Buildings. Demolition work does not constitute "commencement of construction."
(b) If the issuance of a Building Permit by the Department of Buildings is not required
by law, commencement of construction means the date any physical operation has
commenced solely for the purpose of making eligible alterations or improvements. The
Office may require that the commencement of construction date be confirmed by an
affidavit from the owner, along with such other information as the Office may require to
substantiate such date, including but not limited to, an affidavit of a registered architect or
licensed professional engineer, a copy of the work contract, invoices, cancelled checks
and a contractor's affidavit. If a building permit is not required and if the cost of the work
claimed is less than five thousand dollars ($5000) the Office may, in its discretion, accept
an owner's affidavit as to the date of commencement of construction, and waive some or
all of the additional evidence or information. If an application contains a series of
Major Capital Improvements, the commencement of construction date is that of the first
major capital improvement for which benefits are claimed.
Commissioner. "Commissioner" means the Commissioner of the Department of
Housing Preservation and Development or his or her designee.
Common area. "Common area" means the area in an existing dwelling other than the
area which is within the interior walls of individual dwelling units.
Completion of construction."Completion of construction" means the earlier of:
(i) the date of issuance or reissuance of a Permanent Certificate of Occupancy by the
Department of Buildings;
(ii) the date of issuance of a Temporary Certificate of Occupancy by the Department of
Buildings for all of the dwelling units therein, provided the only work remaining to secure a
Permanent Certificate of Occupancy is work to be performed or completed in space to be
used exclusively for non-residential purposes; or
(iii) the date of the issuance of a sign-off by the Department of Buildings as evidenced
by the J-3, a computer printout or such other official documentation as may be required by
the Department of Buildings and is acceptable to the Office if issued in connection with an
eligible alteration, improvement or conversion; provided, however, that
(a) if none of the documents set forth above are required by law, "Completion of
construction" shall mean that date on which physical operations to undertake alterations or
improvements are concluded as confirmed by the submission of such information as the
Office may require to substantiate such date, including but not limited to, a copy of the
work contract, invoices, cancelled checks and a contractor's affidavit. If none of the
documents set forth above are required by law and if the cost of the work claimed is less
than five thousand dollars ($5,000), the Office may, in its discretion, accept an owner's
affidavit as to the date of completion of construction and waive some or all of the
additional evidence and information;
(b) if the applicant is a limited profit housing company organized pursuant to article two
of the private housing finance law which owns and operates a planned unit development
consisting of at least fifteen thousand (15,000) dwelling units:"Completion of construction
shall mean that date on which physical operations to undertake alterations or
improvements are concluded as confirmed by the submission of such information as the
Office may require to substantiate such date, including but not limited to, a copy of the
work contract, invoices, cancelled checks and a contractor's affidavit, or, if the cost of the
work claimed is less than five thousand dollars ($5,000), the Office may, in its discretion,
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accept an owner's affidavit as to the date of completion of construction and waive some or
all of the additional evidence and information. Notwithstanding the foregoing, all required
sign-offs including, but not limited to, the J-3 issued by the
Department of Buildings, must be submitted to the Office before it issues a Certificate of
Eligibility and Reasonable Cost pursuant to section 5-05(g)(3) of this chapter to such an
applicant; and
(c) if an Alteration Type-1 Permit was issued to any applicant other than an applicant
who is a limited profit housing company organized pursuant to article two of the private
housing finance law which owns and operates a planned unit development consisting of at
least fifteen thousand (15,000) dwelling units, the only acceptable evidence of completion
of construction shall be the Temporary or Permanent Certificate of Occupancy.
Condominium."Condominium" means any residential unit which is owned pursuant to
the Condominium Act, Article IX-B of the Real Property Law, provided it is situated in a
building which is a Class A multiple dwelling, and provided that such condominium has
had a plan of condominium ownership accepted for filing by the Attorney General or has
received a "no action" letter from the Attorney General, or has demonstrated that it is not
subject to the requirements of 352(e) of the General Business Law.
Conversion. "Conversion" means only those items of work set forth in 5-08 which are
necessary for the conversion of any building not a Class A multiple dwelling, into a Class
A multiple dwelling. For purposes of eligibility for benefits, an interim multiple dwelling
claiming benefits for conversion based on compliance with the standards of safety and fire
protection set forth in Article 7-B of the Multiple Dwelling Law shall be deemed a Class A
multiple dwelling.
Cooperative. "Cooperative" means any building which is operated for the benefit of
persons or families who are entitled to occupancy by reason of ownership of stock,
membership, or other indices of ownership in the corporate owner, or for the benefit of
such persons or other families and other persons or families entitled to occupancy under
applicable provision of law without ownership of stock, membership, or other indices of
ownership in the corporate owner, provided, such cooperative has either had a plan of
cooperative ownership accepted for filing by the Attorney General or has received a "no
action" letter from the Attorney General, or has demonstrated that it is not subject to the
requirements of 352(e) of the General Business Law.
Department of Buildings. "Department of Buildings" means the Department of
Buildings of the City.
Department of Environmental Protection. "Department of Environmental Protection"
means the Department of Environmental Protection of the City.
Department of Finance."Department of Finance" means the Department of Finance of
the City.
Designated historic district or landmark site or structure. "Designated historic
district or landmark site or structure" means an historic district or landmark site or
landmark structure as designated by the Landmarks Preservation Commission of the City.
DHCR. "DHCR" means the New York State Division of Housing and Community
Renewal.
Disposition of Funds Statement. "Disposition of Funds Statement" means. written
confirmation of funds actually advanced for construction under a building loan agreement
made pursuant to Article 8, 8-a, 11, 12, 15 or 22 of the Private Housing Finance Law, or
312 of the United States Housing Act of 1964 (42 U.S.C. 1452 b), or the CranstonGonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) or 696-a or 99(h)
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of the General Municipal Law, or any other City-supervised housing program, or, in the
discretion of the Office, other governmentally supervised housing programs.
Existing dwelling. "Existing dwelling" means a Class A multiple dwelling, including a
garden-type maisonette dwelling project, or one or two Class A dwelling units in a building
over space used for commercial occupancy which was in existence prior to the
commencement of construction of alterations or improvements for which tax exemption or
tax abatement is claimed under the terms of the Act, provided that a valuation for the
improvement of more than one thousand dollars ($1,000), exclusive of the land, appears
on the annual record of assessed valuation of the City for the fiscal year immediately
preceding the commencement of construction of alterations or improvements, and
provided further that such assessed valuation test shall not apply if the alterations,
improvements or conversion are carried out with substantial governmental assistance.
Floor area. "Floor area" of a building means the gross horizontal areas of all of the
floors of a dwelling measured from the exterior faces of exterior walls or from the center
line of party walls. "Floor area" of a dwelling unit means the gross floor area within the
dwelling unit measured from the interior faces of the demising partitions or walls.
Garden-type maisonette dwelling project. A "garden-type maisonette dwelling
project' shall mean a project consisting of a series of dwelling units which together and in
their aggregate were arranged or designed to provide three or more apartments and are
provided as a group collectively with all essential services such as, but not limited to,
water supply, house sewers and heat, and which are in existence and operated as a unit
under single ownership on the date upon which an application for the benefits of the Act is
received by the Office, even though Certificates of Occupancy may have been issued for
portions thereof as private dwellings.
General Business Law. "General Business Law" means the General Business Law of
the State of New York.
Gross cubic content. "Gross cubic content" of a building means the volume within the
exterior faces of the perimeter walls (or center line of party walls), above legal grade, and
below the roof level, plus any legal residential space below grade level. Roof bulkheads or
roof penthouses used exclusively for machinery or equipment shall not be included. New
exterior stair towers or elevator shafts shall not be included, unless they substitute for
existing stair or elevator space which is converted to residential space.
Hotel. "Hotel" shall mean those buildings defined as Hotels by 5-03(fl(4).
Housing Maintenance Code. "Housing Maintenance Code" means the Housing
Maintenance Code of the City, constituting 27-2001 et seq. of the Administrative Code,
as amended.
HPD. "HPD" means the Department of Housing Preservation and Development of the
City.
HUD. "HUD" means the United States Department of Housing and Urban Development.
Increase in gross cubic content. "Increase in gross cubic content' means any portion
of a building that results from new construction as distinguished from alterations or
improvements to the gross cubic content in existence immediately prior to commencement
of construction.
Institutional lender. "Institutional lender" means any municipal, federal or state agency
and any savings or commercial bank, life insurance company, public real estate
investment company, pension fund or any other entity having assets in excess of fifty
million dollars ($50,000,000), whose mortgage loans are subject to regulation of a federal
or state agency.
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Itemized Cost Breakdown Schedule. "Itemized Cost Breakdown Schedule" means

the schedule set out in 5-08.
Landmark. "Landmark" means an improvement which has been designated as a
landmark by the Landmarks Preservation Commission of the City or which is within the
boundaries of a historic district designated by the Landmarks Preservation Commission of
the City.
Major capital improvement or MCI. "Major capital improvement" or "MCI" means only
those items of work designated as major capital improvements (MCI's) and set forth,
preceded by an asterisk, in 5-08.
Minimum tax zone. "Minimum tax zone" means the area within the Borough of
Manhattan in which tax abatement benefits are limited as set forth in 5-06(e)(2).
Moderate rehabilitation. "Moderate rehabilitation" means a scope of work in a
substantially occupied Class A multiple dwelling which includes a major capital
improvement in not less than one of the five categories set forth in 5-03(a)(6), and in
which the certified reasonable cost, calculated as set forth in 5-03(a)(6), equals or
exceeds $2,500 (two thousand five hundred dollars) per dwelling unit, and meets the
notice and filing requirements set forth in 5-03(h)(1).
Mutual company. "Mutual company" shall have the same meaning as set forth in
section two of the Private Housing Finance Law.
Non-targeted Area. "Non-targeted Area" means a geographic area in the city of New
York that is not located in a Targeted Area.
Office. "Office" means the Office of Tax Incentive Programs of HPD, or any successor
thereto authorized to administer this chapter.
Ordinary repairs. "Ordinary repairs" means those items of work listed in the Itemized
Cost Schedule as ordinary repairs, i.e., those items not preceded by an asterisk.
Permanent residential use. "Permanent residential use" shall mean the lease of all
residential units for residential purposes as set forth in 5-03(fl(4).
Private dwelling. "Private dwelling" means any building or structure which is either:
(1) exclusively designed and occupied for residential purposes by not more than two
families or
(2) for which the Department of Buildings has issued a Certificate of Occupancy which
describes the building as intended exclusively for not more than two families. Private
dwelling shall also be deemed to include a series of one or two-family dwelling units each
of which faces or is accessible to a legal street or public thoroughfare, if each dwelling unit
is equipped as a separate dwelling unit with all essential services, and if each such unit is
arranged so that it may be approved as a legal one-family ortwo-family dwelling.
Private Housing Finance Law. "Private Housing Finance Law" means the Private
Housing Finance Law of the State of New York.
Reasonable cost. "Reasonable cost" means the cost of a conversion, alteration or an
improvement as conclusively determined and certified by the Office pursuant to this
chapter.
Rehabilitation schedule. "Rehabilitation schedule" means the Itemized Cost
Breakdown Schedule.
Rules."Rules" means this chapter of the Rules of the City of New York.
Single room occupancy. "Single room occupancy" means occupancy in a multiple
dwelling by one or more persons of a room or rooms without a private kitchen or
kitchenette or a private bathroom or separate means of egress for occupants thereof to
the public areas of the multiple dwelling.
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Substantial governmental assistance. "Substantial governmental assistance" shall

mean a project carried out with grants, loans or subsidies from any federal, state or Iocal
agency or instrumentality, including, without limitation, financing or insurance provided by
the State of New York Mortgage Agency and New York City Residential Mortgage
Insurance Corporation, but shall not include (1) taxable bonds issued by a federal, state,
or local agency or instrumentality, (2) purchase money mortgages from a federal, state or
local agency or instrumentality, or (3) any grant, loan or subsidy from a federal, state or
local agency or instrumentality which does not specifically require a program of affordable
housing (e.g., energy conservation grants). In the discretion of the Office, a below market
sale by a Federal, state or local agency or instrumentality or a written agreement with a
Federal, state or local agency or instrumentality for development
of affordable housing shall qualify as a subsidy.
Substantial interest. "Substantial interest" as used in 5-03(h)(2) shall mean
ownership of an interest of ten percent (10%) or more in a property or entity owning
property or sponsoring a conversion, alteration or improvement.
Substantial rehabilitation. "Substantial rehabilitation" means any rehabilitation of a
Class A multiple dwelling where the scope of work includes at least four of the systems
listed in 5-03(a)(6)(i), or where, for City-owned buildings or buildings conveyed by deed
from the Commissioner of Finance eligible for benefits under 5-03(a)(9), the scope of
work includes rehabilitation work in at least four major systems in elevator buildings or
three major systems in non-elevator buildings, and where major systems include heating,
plumbing, electricity, elevator, windows and roof (replacement or covering with a new roof
of at least seventy-five percent (75%) of the aggregate roof area), provided further that
work done during City ownership or work financed by a City program but not eligible for
benefits because outside of the required time limits, may be counted toward the required
systems if the work was done and the system has a
substantial remaining useful life at the time of application as evidenced by a certification
by the Commissioner which may be based on such information as permits, sign-offs,
disposition of funds statements, inspections or other program records.
Substantially occupied. "Substantially occupied" shall mean that at least sixty percent
(60%) of the units in a building are occupied by permanent residential tenants immediately
prior to the start of rehabilitation, during the entire period of rehabilitation (except for
temporary periods of relocation in substantially governmentally assisted projects) and
immediately subsequent to completion of construction of the rehabilitation.
Successor in interest. "Successor in interest' shall mean an institutional lender which
originates or acquires an interest in a loan to finance alterations, improvements or a
conversion eligible for benefits under this chapter and which acquires title to the
alterations, improvements or conversion as result of the original owner's default on such
loan, whether by mortgage foreclosure or deed in lieu of foreclosure.
Supervising agency. "Supervising agency" shall have the same meaning as set forth
in section two of the Private Housing Finance law.
Targeted Area. "Targeted Area" means a geographic area in the city of New York in
the zip code listed below that has been determined by the department of health and
mental- hygiene to have high rates of children with environmental intervention blood lead
levels:
Borough
Zip
Code
Neighborhood Name
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Bronx
10458
Belmont-Fordham-Bedford Park
Bronx
10468
University Heights-Kingsbridge
Brooklyn
11205
Fort Greene-Clinton Hill
Brooklyn
11206
Williamsburg-Bedford Stuyvesant
Brooklyn
11216
Bedford Stuyvesant
Brooklyn
11217
Park Slope-Boerum Hill
Brooklyn
11218
Kensington-Windsor Terrace
Brooklyn
11221
Bushwick-Bedford Stuyvesant
Brooklyn
11222
Greenpoint
Brooklyn
11225
Crown Heights-Prospect Lefferts
Brooklyn
11226
Flatbush
Brooklyn
11230
Midwood
Brooklyn
11233
Stuyvesant Heights-Ocean Hill
Brooklyn
11235
Sheepshead Bay-Brighton Beach
Brooklyn
11237
Bushwick
Brooklyn
11238
Prospect Heights
Manhattan
10026
South Central Harlem
Manhattan
10027
Manhattanville-Harlem
Manhattan
10031
Hamilton Heights
Manhattan
10032
South Washington Heights
Manhattan
10033
Middle Washington Heights
Queens
11102
Old Astoria
Queens
11385
Ridgewood-Glendale
Tax abatement exclusion zone."Tax abatement exclusion zone" means the

area within the Borough of Manhattan in which tax abatement benefits are
limited as set forth in 5-06(e)(3).
Zoning Resolution. "Zoning Resolution" means the Zoning Resolution of the City, as
amended.
1) Then %>
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Section 5-03: Eligible Projects and Eligibility Requirements.
Page 1 of 10

Home > Section 5-03: Eligible Projects and Eligibility Requirements.

Title 28: Department of Housing Preservation and Development n> > Chapter 5: J51
(a) Eligible projects. Subject to the limitations relating to single room occupancy and
permanent residential use set forth in 5-03(fl(4), 5-04(a)(4) and 5-07(fl(1), the following
classes of projects may be granted tax exemption and tax abatement:
(1) Conversion of any building or structure classified as a Class B multiple dwelling or a
Class A multiple dwelling used for single room occupancy into a Class A multiple dwelling,
but only if the conversion is carried out with substantial governmental assistance.
(2) Conversion of residential units covered by Article 7-C of the Multiple Dwelling Law in
buildings classified as interim multiple dwellings pursuant to such article and registered
with the New York City Loft Board to units which are in compliance with the standards of
safety and fire protection set forth in Article 7-B of the Multiple Dwelling Law or to units
which have a Certificate of Occupancy as part of a Class A multiple dwelling. Provided,
that if only a portion of a building is eligible as an interim multiple dwelling, benefits shall
be pro-rated between such portion and the remaining part of the building.
(3) Conversion of any non-residential building or structure situated in the borough of
Manhattan into a Class A multiple dwelling, provided the building was anon-residential
building immediately prior to the commencement of construction of the conversion, and
provided further that if construction commenced on or after January 1, 1982, such
conversion is permitted as-of-right by the Zoning Resolution.
(4) Conversion of any non-residential building or structure situated in the boroughs of
the Bronx, Brooklyn, Queens or Staten Island into a Class A multiple dwelling, provided
the building was anon-residential building immediately prior to the commencement of
construction of the conversion, and provided further that if commencement of construction
occurred on or after October 1, 1983, such conversion is permitted as-of-right by the
Zoning Resolution.
(5) Alterations or improvements to the exterior of a building visible from a public street,
provided the alterations or improvements are made pursuant to a Permit for Minor Work,
Certificate of Appropriateness, or Certificate of No Effect issued by the Landmarks
Preservation Commission with respect to a landmark and the building or structure is
otherwise eligible and either an existing dwelling or a building other than a private
dwelling, which is being converted into a Class A multiple dwelling. Such alterations are
eligible for the full amount spent on the required work whether or not the work qualifies as
an MCI, provided, however, that each item of work must appear on the Itemized Cost
Breakdown Schedule as set forth in 5-08.
(6) Alterations or improvements. constituting. a moderate. rehabilitation of a substantially
occupied Class A multiple dwelling, provided the project meets all the conditions set forth
below:
(i) The scope of work must includes a major capital improvement in not less than one
of the following five categories designated below:
(A) Elevators:
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(a) Replacement of existing unit in its entirety;

(b) Replacement of traction machine;
(c) Replacement of one or two-speed controller; or
(d) Conversion of manual to automatic.
(B) Heating.
(a) Boiler and/or burner replacement; or
(b) Piping, heat, mains, risers, branches in all dwelling units.
(C) Plumbing.
(a) Piping (gas), risers and branches in all dwelling units;
(b) Piping (waste and vent), mains, risers branches in alI dwelling units;
(c) Piping (water-main and risers), mains, risers, branches in all dwelling units; or
(d) Sprinklers, in entire building.
(D) Wiring:
(a) Adequate in all dwelling units; or
(b) New in all dwelling units.
(E) Window and trim replacement: provided that all the windows are replaced in at least
ninety percent(90%) of ail residential units; and
(ii) The scope of work must have an average certified reasonable cost of not less than
two thousand five hundred dollars ($2,500) for each dwelling unit in existence at the
commencement of construction of the rehabilitation, comprised exclusively of major capital
improvements, exclusive of any certified reasonable cost for ordinary repairs.
(iii) For the purpose of moderate rehabilitation, a Class A multiple dwelling is
substantially occupied if at least sixty percent (60%) of the units are occupied by
permanent residential tenants immediately prior to the start of rehabilitation, during the
entire period of rehabilitation (except, in substantially governmentally assisted projects, for
temporary periods of relocation pursuant to a governmentally supervised plan of
temporary relocation) and immediately subsequent to completion of construction of the
rehabilitation.
(7) Alterations or improvements to an existing dwelling; provided that such items of
work are set forth in 5-08 and are necessary to eliminate presently existing unhealthy or
dangerous conditions or to replace inadequate and obsolete sanitary facilities, including
asbestos abatement to the extent required by any federal, state or local law.
(8) Alterations or improvements designated as energy conservation items in 5-08. In
order to be eligible pursuant to this paragraph the building being altered or improved must
be an existing dwelling.
(9) Alterations or improvements commenced on or after September 1, 1987
constituting a substantial rehabilitation of a Class A multiple dwelling or a conversion of a
building or structure into a Class A multiple dwelling as part of a program to provide
housing for Iow and moderate income households, provided that:
(i) such alterations or improvements or conversions shall be aided by a grant, loan or
subsidy from any federal, state or local agency or instrumentality. For purposes of this
paragraph, the term "low and moderate income households" shall mean households
having an annual household income no greater than one hundred sixty-five percent
(165%)- of area- median- income for- the Metropolitan Statistical Area as-determined by
HUD. Notwithstanding the foregoing sentence, HPD shall grant benefits to a building if no
more than eighty percent (80%) of units are rented to households having an annual
household income no greater than one hundred eighty percent (180%) of such area
median income, provided at least twenty percent (20%) of the units in such building are
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rented to households with an annual household income no greater than eighty percent
(80%) of such area median income.
(ii) Reserved.
(10) Conversion of a property classified under the zoning resolution as anon-profit
institution with sleeping accommodations into a Class A multiple dwelling, but only if such
conversion is carried out with substantial governmental assistance.
(11) Alterations or improvements to any private dwelling, or conversion of any private
dwelling to a Class A multiple dwelling, or conversion of any multiple dwelling to a private
dwelling, provided that in each instance the alterations, improvements or conversion are
carried out with substantial governmental assistance.
(b) Eligible items of work.' major capital improvements. (1) Items of work designated as
major capital improvements in the itemized cost breakdown schedule contained in 5-08
shall be eligible for tax benefits. Except for purposes of 5-03(c)(1)(iii), any item of work
set forth in 5-08 shall also be considered a major capital improvement if done pursuant to
an Alteration Type-I Permit issued by the Department of Buildings or if it is part of the
scope of work of a moderate rehabilitation.
(2) An existing dwelling shall not be eligible to receive tax abatement or tax exemption
for any item of work designated as a major capital improvement if it is receiving tax
abatement or tax exemption for the same or a similar major capital improvement at the
time of application for tax benefits, except as provided in 5-04(b)(4).
(c) Eligible items of work: ordinary repairs. (1) Ordinary repairs are those items of work
listed in the Itemized Cost Breakdown Schedule which are not preceded by an asterisk.
The replacement of any component part of any item of work listed in 5-08 is also an
ordinary repair. Ordinary repairs are not eligible for tax abatement unless they are:
(i) Made to a common area; and are
(A) Certified to have been started and completed within a twelve month period by an
affidavit:
(a) of a registered architect or a licensed professional engineer; or
(b) by the applicant. Certification by the applicant must be substantiated to the
satisfaction of the Office by cancelled checks or such other proof of payment as the Office
shall require, contractors' affidavits and/or such other information as may be required by
the Office to substantiate such completion of construction; and
(B) Made concurrently with a major capital improvement to such common area which
requires a permit by the Department of Buildings. Ordinary repairs are made concurrently
with a major capital improvement if they are started no earlier than sixty days before and
no later than sixty days after the issuance of a building permit for the major capital
improvement; or
(ii) Done pursuant to an Alteration Type-i Permit issued by the Department of
Buildings; or
(iii) Done as part of a moderate rehabilitation pursuant to 5-03(a)(6) provided,
however, that only major capital improvements shall be counted to meet the requirement
of 5-03(a)(6)(ii) that the CRC for a moderate rehabilitation must equal or exceed an
average of two thousand five hundred dollars ($2,500) per dwelling unit; or
(iv) in the- case of projects described in 5-03(a)(9), done pursuant to an Alteration
Type-il Permit.
(2) The certified reasonable cost for ordinary repairs may not exceed twice the amount
actually expended on the designated concurrent major capital improvement, exclusive of
any such ordinary repairs.
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(3) An existing dwelling is not eligible to receive tax abatement for any item of work
designated as an ordinary repair if the existing dwelling was receiving tax abatement for
ordinary repairs pursuant to the Act as of the December thirty-first of the calendar year
preceding the date of the application to the Office, unless the ordinary repair
independently qualifies under this subdivision (c) as eligible for tax benefits. Tax
abatement may not be received for repairs to any item for which benefits of tax abatement
are already being received.
(d) Time Requirements. (1) in order to receive the tax benefits provided by the Act,
eligible projects, except for conversions described in 5-03(a)(2), must be completed
within thirty-six months following the commencement of construction, provided, however, a
sixty month period for completion of construction following commencement of construction
shall be available for alterations and improvements undertaken by a housing development
fund company organized pursuant to Article 11 of the Private Housing Finance Law which:
(i) are carried out with substantial governmental assistance or
(ii) which are carried out in a property transferred from the City if alterations and
improvements are completed within seven years after the date of transfer, provided that all
such alterations, improvements or conversions must be completed in any event prior to
December 31, 2007. Provided further, however, the Office may grant an extension of the
project completion period for any project carried out with the assistance of grants, loans or
subsidies from any federal, state or local agency or instrumentality if such alterations,
improvements, or conversions are completed within sixty (60) months from
commencement of construction.
(2) in amulti-building project, if all buildings are not completed within the thirty-six
month period following commencement of construction, applications for benefits may be
filed for separate buildings or separate groups of buildings which are on the same tax
block and lot completed within such thirty-six month period, provided separate permits are
in effect for each such filing; otherwise all work must be completed within such thirty-six
month period.
(3) In order to receive the tax benefits provided by the Act, an application for
certification of reasonable cost must be filed with the Office not later than forty-eight
months following the commencement of construction of the conversion, alteration or
improvement, except that an application for benefits pursuant to 5-03(a)(2) must be filed
not later than twelve months following completion of construction of the conversion.
(4) At the discretion of the Commissioner, an extension of the time to file to seventytwo months from the commencement of construction may be granted for any project
carried out with substantial governmental assistance.
(5) An application for certification of reasonable cost must contain all documentation
required by 5-05 and be completed and filed with the Office within twenty-four months of
the initial filing date with the Office or the application shall be deemed withdrawn at the
end of the tax quarter in which the twenty-fourth (24th) month falls, and no tax benefits
shall be authorized for the conversion, alteration or improvements made thereunder.
Provided, however, that for projects carried out with substantial governmental assistance
and which have received a Temporary Certificate of Eligibility, the applicant must
complete the application within one year of the completion of construction. Refer to 5-05
for detailed filing requirements. Applicants must notify the Office of any change of address
and/or change of ownership of the property, and any change in the designated filing
agent.
(6) Notwithstanding the provisions contained in paragraph five of this subdivision, an
application for certification of reasonable cost must contain all documentation required by
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5-05 and be completed and filed with the Office within thirty-six months of the initial filing
date with the Office if the applicant is a limited profit housing company organized pursuant
to article two of the private housing finance law which owns and operates a planned unit
development consisting of at least fifteen thousand (15,000) dwelling units. If such
application is not so completed and filed with the Office within thirty-six months of the
initial filing date, the application shall be deemed withdrawn at the end of the tax quarter in
which the thirty-sixth (36th) month falls, and no tax benefits shall be authorized for the
conversion, alteration or improvements made thereunder.
(e) Construction and maintenance requirements. (1) In order to be eligible for tax
benefits a building must be structurally sound and must comply with applicable laws
including, but not limited to, the Building Code, the Multiple Dwelling Law, the Housing
Maintenance Code and the Zoning Resolution.
(2) The following subparagraphs set forth the minimum number of bedrooms required
by the Act.
(i) Buildings converted to Class A multiple dwellings, buildings where the configuration
has been altered to increase the number of units, and existing dwellings which have been
substantially rehabilitated must contain bedrooms in a number equal to seventy-five (75%)
percent of the dwelling units contained therein in order to be eligible to receive tax
benefits.
(ii) The bedroom count requirement set forth in subparagraph (i) above is not
applicable to non-residential buildings or structures converted to Class A multiple
dwellings when the resulting dwelling units therein contained an average floor area of one
thousand square feet or more.
(iii) A substantial rehabilitation of an existing dwelling shall be exempt from the
provisions of this paragraph (2) in the event that (A) the number of dwelling units in such
existing dwelling is not thereby increased and (B) the number of bedrooms in such
existing dwelling is not thereby reduced.
(iv) For purposes of the bedroom count requirement set forth in subparagraphs (i) and
(ii) above, dwelling units which contain a combined living/dining/kitchen space in excess of
three hundred and twenty-five square feet may be deemed to include both a kitchen and
living room, so that any additional rooms may be considered bedrooms, under
subparagraphs (i) and (ii) above.
(3) No building shall be eligible to receive benefits pursuant to the Act unless all of the
dwelling units contained therein are Class A dwelling units as defined in 4 of the Multiple
Dwelling Law, and have complete sanitary facilities and a complete kitchen or kitchenette
for the exclusive use of the person or family residing in such unit, provided, however, if a
building contains both Class A and Class B units, benefits may be pro-rated as set forth in
5-03(fl(4). Class B units may be eligible to apply to the Office for tax benefits pursuant to
11-244 of the Administrative Code.
(fl Rent regulatory requirements. (1) Rent regulation generally mandatory. in order to
be eligible to receive tax benefits under the Act and for at least so long as a building is
receiving the benefits of the Act, except for dwelling units which are exempt from such
requirement pursuant to paragraph (2) below, all dwelling units in buildings or structures
converted, altered or improved shall be subject to rent regulation pursuant to --- --(i) the City Rent and Rehabilitation Law (26-401 et seq. of the Administrative Code); or
(ii) the Rent Stabilization Law of 1969(26-501 et seq. of the Administrative Code); or
(iii) the Private Housing Finance Law; or
(iv) any federal law providing for rent supervision or regulation by HUD or any other
federal agency; or
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(v) the Emergency Tenant Protection Act of 1974.

(2) Exemption from rent regulation.
(i) Notwithstanding paragraph (1) above, dwelling units in multiple dwellings which are
owned as cooperatives or condominiums and which are not regulated pursuant to any of
such laws shall not be required to be subject to rent regulation.
(ii) Newly created dwelling units in a building for which a prospectus for condominium or
cooperative formation has been submitted to the Attorney General at the time of
application for benefits to the Office shall not be required to registered with DHCR, unless
a plan of cooperative or condominium ownership has not been declared effective within
fifteen (15) months of the date of the acceptance for filing of the plan of cooperative or
condominium ownership with the Attorney General.
(3) Deregulation of units. (i) With respect to a dwelling unit in any building receiving
benefits under the Act,
(A) such unit shall remain subject to rent regulation until the occurrence of the first
vacancy after tax benefits are no longer being received for the building at which time the
unit shall be deregulated, unless the unit is otherwise subject to rent regulation; or
(B) if each lease and renewal thereof for such unit for the tenant in residence at the time
of the expiration of the tax benefits has included a notice in at least twelve point type
informing such tenant that the unit shall become subject to deregulation upon the
expiration of the tax benefits and stating the approximate date on which tax benefits are to
expire, such dwelling unit shall be deregulated after tax benefits are no longer being
received for the building, unless the unit is otherwise subject to rent regulation.
(ii) As provided in 39-03, rent regulation shall not be terminated by the waiver or
revocation of tax benefits.
(iii) Rent regulation of dwelling units shall not be exempted or terminated other than as
set forth in this subdivision (fl as long as benefits are in force.
(4) Permanent residential use. All dwelling units must be leased for permanent
residential purposes for a term of not less than one year so long as tax benefits are in
effect. Permanent residential use shall not include use as a hotel, dormitory, employee
residence or facility, fraternity or sorority house, resort housing or any similar type of nonpermanent housing. For purposes of this chapter, a "hotel" shall mean (i) any Class B
multiple dwelling, as such term is defined in the Multiple Dwelling Law, (ii) any structure or
part thereof containing living or sleeping accommodations which is used or intended to be
used for transient occupancy, (iii) any apartment hotel or transient hotel as defined in the
Zoning Resolution, or (iv) any structure or part thereof which is used to provide short term
rentals or owned or leased by an entity engaged in the business of providing short term
rentals. For purposes of this definition, a lease,
sublease, license or any other form of rental agreement for a period of less than six
months shall be deemed to be a short term rental. Notwithstanding the foregoing, (i) a
structure or part thereof owned or leased by anot-for-profit corporation for the purpose of
providing governmentally funded emergency housing shall not be considered a hotel for
purposes of this chapter, and (ii) benefits may be pro-rated by deducting out work
attributable to Class B units in a building containing both Class A and Class B units,
provided. that. all. units in a building are registered with DHCR as rent stabilized or rent
controlled units, and are utilized for permanent residential use.
(5) Escalation clauses in leases. Except for the notice referred to in subparagraph (i)(B)
above, no lease for dwelling units which are registered with DHCR shall contain escalation
clauses for real estate taxes or any other provisions for increasing the rent set forth in the
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lease, other than permitting an increase in rent pursuant to an order of DHCR or the Rent
Guidelines Board.
(6) Partial waiver of rent adjustments attributable to major capital improvements. (i) As a
requirement for claiming or receiving any tax abatement attributable to a major capital
improvement, the owner of the property shall file with the Office, on the date any
application for benefits is made, a declaration stating that in consideration of any tax
abatement benefits which may be received pursuant to such application for alterations or
improvements constituting a major capital improvement, such owner agrees to waive the
collection of a portion of the total annual amount of any rent adjustment attributable to
such major capital improvement which may be granted by DHCR pursuant to the rent
stabilization code equal to one-half of the total annual amount of the tax abatement
benefits which the property receives pursuant to such application with respect to such
alterations or improvements. For example, an owner receiving a total rent adjustment over
eighty-four
months equal to $100,000 for a major capital improvement along with tax abatement of
$100,000 for the same improvement would waive collection of $50,000 during such
period. Such waiver shall commence on the date of the first collection of such rent
adjustment, provided that, in the event that such tax abatement benefits were received
prior to such first collection, the amount waived shall be increased to account for such tax
abatement benefits so received. The entire amount shall be applied against the first
annual rent adjustment, including any retroactive rent adjustments which may be granted
by the applicable DHCR order, unless the amount exceeds such adjustments, in which
event the excess shall be carried forward. The calculation of the amount attributable to the
waiver shall be against the total rent adjustment for the eighty-four month period prior to
the application of any annual percentage limitation applied by DHCR to defer collection of
the total rent adjustment. In calculating rental adjustments
pursuant to Rent Guidelines Board orders the amount of the waived rent shall not be
included in the base rent. Following the expiration of a tax abatement for alterations or
improvements constituting a major capital improvement for which a rent adjustment has
been granted by DHCR, the owner may collect the full amount of annual rent permitted
pursuant to such rent adjustment. A copy of such declaration shall be filed simultaneously
with DHCR. Such declaration shall be binding upon such owner, and his or her
successors and assigns.
(ii) The provisions of subparagraph (i) shall not apply to substantial rehabilitation of
buildings vacant when alterations or improvements are commenced or to buildings
rehabilitated with substantial governmental assistance.
(g) Eligibility rules for cooperatives and condominiums. (1) Buildings owned as
cooperatives or condominiums are eligible for tax exemption pursuant to the Act, provided
the work is eligible pursuant to 5-03(a).
(2) Eligibility for tax abatement is limited to: (i) Cooperatives and condominiums, for
alterations and improvements completed prior to or within thirty-six months after the first
closing in a condominium to a bona fide purchaser occurs or in the case of a cooperative
thirty-six months from the date on which the first shares allocable to a unit are conveyed to
a bona fide purchaser. or
(ii) Any cooperative or condominium in which dwelling units have been newly created
by the substantial rehabilitation of a vacant building or the conversion of anon-residential
building, or
(iii) Any cooperative or condominium, for alterations and improvements commenced on
or prior to August 7, 1992 which meets the following requirements:
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(A) Alterations or improvements to at least one building-wide Major Capital

Improvement as set forth in 5-03(a)(6)(i) or a new roof (at least seventy-five percent
(75%) of the aggregate roof area is replaced or covered with new roofing) are part of the
application for benefits, and
(B) the actual assessed valuation of such multiple dwelling shall not exceed an
average of thirty thousand dollars ($30,000) per dwelling unit at the time of
commencement of construction of the alterations and improvements, and
(C) during the three years immediately preceding the commencement of construction
of the alterations and improvements the average per room sale price of the dwelling units
or the stock allocated to such dwelling units shall have been no greater than thirty-five
percent (35%) of the maximum mortgage amount for a single family house eligible for
purchase by the Federal National Mortgage Association, provided, that if an amount less
than ten percent (10%) of the dwelling units or an amount of stock less than the amount
allocable to ten percent (10/o) of such dwelling units was transferred during such
preceding three year period, eligibility for benefits shall be conditioned upon the multiple
dwelling having an actual assessed valuation per dwelling unit of no more than twenty-five
thousand dollars ($25,000) at the time of commencement of construction of any such
alterations or improvements.
(D) Assessed valuation shall be actual assessed valuation and not the transitional
assessed value.
(E) The maximum amount of tax abatement which may be applied against taxes due in
any tax year by any cooperative or condominium claiming benefits under this 5-03(g)(2)
(iii) shall be limited to two thousand five hundred dollars ($2,500) per dwelling unit.
(iv) Any cooperative or condominium, for work commenced after August 7, 1992 which
meets the following requirements:
(A) the actual assessed valuation of such multiple dwelling shall not exceed an
average of forty thousand dollars ($40,000) per dwelling unit at the time of the
commencement of construction of the alterations and improvements, and
(B) during the three years immediately preceding the commencement of construction of
the alterations and improvements the average per room sale price of the dwelling units or
the stock allocated to such dwelling units shall have been no greater than thirty-five
percent (35%) of the maximum mortgage amount for a single family house eligible for
purchase by the Federal National Mortgage Insurance Corporation provided that if an
amount less than ten percent(10%) of the dwelling units or an amount of stock less than
the amount allocable to ten percent (10%) of such dwelling units was not transferred
during such preceding three year period eligibility for benefits shall be conditioned upon
the multiple dwelling having an actual assessed valuation per dwelling unit of no more
than forty thousand dollars ($40,000) at the time of the commencement of construction of
the alteration or improvement.
(C) Assessed valuation shall be actual assessed valuation and not the transitional
assessed value.
(D) The maximum amount of tax abatement which may be applied against taxes due in
any tax year by any cooperative or condominium claiming benefits under this 5-03(g)(2)
(iv) shall be limited to two thousand five hundred dollars ($2,500)per dwelling unit. (E) Notwithstanding anything to the contrary contained in this subparagraph (iv), the
availability of any benefits pursuant to the Act to any multiple dwelling, building or
structure owned and operated by a limited-profit housing company established pursuant to
article two of the Private Housing Finance Law shall not be conditioned upon the
assessed valuation of such multiple dwelling, building or structure, including land, as
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calculated as an average dollar amount per dwelling unit, at the time of commencement of
the alterations or improvements; provided, however, that such limited-profit housing
company (1) is organized and operating as a mutual company, (2) continues to be
organized and operated as a mutual company and to own and operate the multiple
dwelling, building or structure receiving such benefits, and (3) has entered into a binding
and irrevocable agreement with the commissioner of housing of the state of New York, the
supervising agency, the
New York city housing development corporation, or the New York state housing finance
agency prohibiting dissolution or reconstitution of such limited-profit housing company
pursuant to section thirty-five of the Private Housing Finance Law for not less than fifteen
years from the commencement of such benefits.
(v) For purposes of determining the number of rooms in applying the limitations
contained in 5-03(g)(2)(iii) and (iv), the number of zoning rooms shall be used unless
there is no filing with the Department of Buildings indicating the number of zoning rooms,
in which case the number shall be either:
(A) the room count as evidenced in the plan of cooperative or condominium ownership,
or
(B) at the discretion of the Office, the room count as certified by a licensed architect.
(vi) Where the building is occupied in part for residential purposes and in part for nonresidential purposes, the assessed valuation of the property shall be allocated by the
Office between the residential and the non-residential portions based on pro rata square
footage, unless the non-residential portion is on a separately assessed tax lot, and only
the amount of valuation allocated to the residential portion shall be considered in
computing the assessed valuation per dwelling unit for purposes of 5-03(g)(2)(iii) and
(iv).
(h) Special requirements for moderate rehabilitation and special non-harassment
provisions.(1) Special requirements for moderate rehabilitation.
(i) in order to be eligible for tax benefits pursuant to 5-03(a)(6), an applicant must:
(A) Not more than one hundred eighty days nor less than thirty days prior to the
commencement of construction of rehabilitation, complete form MR-1 (notice to tenants)
and send it by registered or certified mail, return receipt requested, to all tenants residing
in the building to be rehabilitated and post a copy conspicuously in the building lobby; and
(B) Complete form MR-2 (affidavit that MR-1 was mailed) and file it with the Office not
less than thirty days prior to the start of rehabilitation.
(ii) If more than one hundred eighty days elapse between the date Form MR-1 is
mailed to any tenant and the date rehabilitation actually commences, new Forms MR-1
and MR-2 must be completed and mailed and posted and filed as required by
subparagraphs (i) and (ii) of this paragraph (1) provided that, in the case of a loan
program supervised by HPD, notice to HPD shall be unnecessary, and further provided
that HPD may itself provide the required notice to tenants prior to commencement of
construction in lieu of the MR-1 written notice and MR-2 affidavit.
(iii) in the discretion of the Office, in lieu of the requirements established by
subparagraphs (i) and (ii) of this paragraph (1), the applicant may establish by proof
satisfactory. to the Office that it has provided notice to HPD and to the tenants residing in
the building to be rehabilitated of (A) the proposed work prior to commencement of such
work, (B) the identity of the owner's representative, and (C) the tenants' rights under
applicable law with respect to such work.
(2) Special non-harassment provisions. in order to be eligible for any tax exemption
pursuant to the Act, irrespective of the cost of the conversion, alteration or improvement,
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or to be eligible for tax abatement when the CRC per dwelling unit exceeds seven
thousand five hundred dollars ($7,500)(including the cost of any conversion, alteration or
improvement for which an abatement was approved within four years prior to
commencement of construction of the contemplated project), the owner of the property
shall file with the Office, not less than thirty days before the commencement of
construction of the conversion, alteration or improvement (the "cut-off date"), an affidavit,
or, at the time of application, a late filing affidavit or, where any information referred to in
5-03(h)(2)(i) below changes prior to applying for or claiming any benefit under this
subdivision (h), an amended affidavit, setting forth the following information:
(i) every owner or record and owner of a substantial interest in the property or entity
owning the property or sponsoring the conversion, alteration or improvement;
(ii) a statement that none of such persons had, within the five years prior to the cut-off
date, been found to have harassed or unlawfully evicted tenants by judgment or
determination of a court or agency (including a non-governmental agency having
appropriate legal jurisdiction) under the penal law, any state or local law regulating rents
or any state or local law relating to harassment of tenants or unlawful eviction; and
(iii) any change in the information required to be set forth.
(3) No conversion, alteration or improvement subject to paragraph (2) of this subdivision
(h) shall be eligible for tax exemption or tax abatement under the Act where:
(i) any affidavit required under paragraph (2) has not been filed; or
(ii) any such affidavit contains a willful misrepresentation or omission of any material
fact; or
(iii) any person referred to in 5-03(h)(2)(i) has been found to have harassed or
unlawfully evicted tenants until and unless the finding is reversed on appeal, provided that
any such finding after the cut-off date shall not apply to or affect any tax abatement or
exemption for the conversion, alteration or improvement covered by the affidavit.
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Section 5-04: Ineligible Projects. Items of Work.
Page 1 of 2

Home > Section 5-04: Ineligible Projects, Items of Work.

(a) Ineligible projects. The tax benefits of the Act are not available to:
(1) Any tax lot which is receiving tax exemption or tax abatement under any other
provision of state or local law for rehabilitation or new construction, including but not
limited to 420-c, 421-a, 421-b, 421-g, and 488-a of the Real Property Tax Law, but
not including the provisions of the Private Housing Finance Law as of the date that the
Certificate of Eligibility is issued.
(2) Any building for which real estate taxes, water or sewer charges, payments in lieu
of taxes, emergency repair or relocation liens are due and owing or not satisfied of record
as of the last day of the tax quarter preceding the submission date of the Certificate of
Eligibility to the Department of Finance, provided that a property rehabilitated by a loan
pursuant to Article 8 or Article 15 of the Private Housing Finance Law shall not be
ineligible pursuant to this section if there are no real estate taxes or water and sewer
charges due and owing as of the last day of a tax quarter preceding commencement of
construction of such rehabilitation. The benefits of tax exemption and tax abatement shall
not be denied to any property pursuant to this section on account of unpaid real estate
taxes, water or sewer charges provided the applicant or his predecessor in title has
entered into an installment agreement with the City pursuant to 11-401 et seq. of
the Administrative Code and all payments required by said installment agreement have
been paid when due.
(3) Any multiple dwelling which results from the conversion of a private dwelling except
as provided in 5-03(a)(11).
(4) The conversion, alteration or improvement, commenced on or after July 1, 1982, of
any Class B multiple dwelling or Class A multiple dwelling used in whole or in part for
single room occupancy regardless of the status or use of the building after the conversion,
alteration or improvement, unless such conversion, alteration or improvement is carried
out with substantial governmental assistance.
(5) Any property for which. the improvement is assessed at one thousand dollars
($1,000) or less at the commencement of construction of alterations, improvements or
conversion, provided that such assessed valuation test shall not apply if the alterations,
improvements or conversion is carried out with substantial governmental assistance.
(6) Any building or structure that results from new construction as distinguished from
rehabilitation, alterations, improvements or conversion, as evidenced by issuance of a
building permit for new construction. In order for a building to be characterized as
rehabilitated; altered-; improved or converted; one of the following conditions must be met
before, during and after construction:
(i) At least seventy-five percent (75%) of the total area of the original perimeter walls,
but in any event at (east fifty percent (50%) of the total area of the original non-party
perimeter walls, must remain in place as perimeter walls in the building for which benefits
are claimed; or
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Section 5-04: Ineligible Projects, Items of Work.
Page 2 of 2
(ii) At least eighty percent (80%) of the original structural floor area of the building must
remain in place as structural floor in the building for which benefits are claimed.
(7) The conversion of any building, or portion thereof.
(i) which is located within any district in the County of New York where a floor area ratio,
as that term is defined in the Zoning Resolution, of fifteen or greater is permitted by said
resolution, or
(ii) located in the City where residential conversion as-of-right is not permitted by said
resolution, unless construction actually commenced in the County of New York prior to
January 1, 1982, or in the Counties of Kings, Queens, Richmond or the Bronx prior to
October 1, 1983, pursuant to an alteration permit, or unless the building is eligible for the
benefits of the Act pursuant to 5-03(a)(2).
(8) Any conversion commenced on or after June 28, 1988 of any property classified
under the Zoning Resolution as anon-profit institution with sleeping accommodations,
unless such conversion is carried out with substantial governmental assistance.
(b) Ineligible items of work. The tax benefits of the Act are not available for:
(1) Alterations or improvements done in connection with the refinancing of a housing
project pursuant to 223(fl of the National Housing Act, as amended.
(2) Any portion of a building that results from new construction as distinguished from
alterations or improvements or which represents an increase in the gross cubic content of
a building from the gross cubic content in existence immediately prior to commencement
of construction.
(3) Any portion of a building occupied by stores, professional offices, community
facilities or otherwise used for commercial or non-residential purposes pursuant to the
classifications set forth in the Zoning Resolution.
(4) Any item of work if a building is receiving tax abatement for the same or a similar
item of work at the time of application for the benefits of the Act, provided, however, that if
an item or a system which was previously repaired is replaced in its entirety while the
building is still receiving the benefits of the Act for such repair, tax benefits for the
replacement shall be granted only to the extent that the certified reasonable cost of the
replacement exceeds the amount of the previously granted certified reasonable cost
attributable to the repair.
(5) An existing dwelling is not eligible to receive tax abatement for any item of work
designated as an ordinary repair if the existing dwelling was receiving tax abatement for
ordinary repairs pursuant to the Act as of the December thirty-first of the calendar year
preceding the date of the application to the Office, unless the ordinary repair
independently qualified under 5-03(c) as eligible for tax benefits. Tax abatement may not
be received for repairs to any items for which benefits of tax abatement are already being
received.
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Section 5-05: Application Procedure: Documentation.
Page I o~f6

Home > Section 5-05: Application Procedure: Documentation.

(a) Application forms and filing. Prescribed forms and applications are available from
the Department of Housing Preservation and Development, Office of Tax Incentive
Programs, 100 Gold Street, 1st Floor, New York, New York 10038. All applications must
be submitted to the Office on forms approved by the Office. Only applications complete in
all detail will be considered for certification of eligibility and reasonable cost. All forms
must be filled out fully and legibly by the applicant and shall be typewritten or inscribed in
permanent ink. Applications and supporting documentation may only be submitted to the
Office for review and approval after the completion of construction of work and during the
following four filing periods: February 1/March 15; May 1/June 15; August 1/September
15; November 1/December 15. If the fifteenth of March, June, September or December
falls on a City holiday or on a weekend, the filing period shall end on the next
business day.
(b) Preliminary application. All applicants who intend to apply for tax exemption and tax
abatement when they complete conversion, alteration or improvements must file a notice
of intent form (form J-11) with the Department of Finance which describes the work for
which tax benefits will be claimed, estimates the cost of the work for which tax benefits will
be claimed and estimates the cost of the work which will be eligible for tax benefits. Such
form must be filed not less than 45 days prior to the commencement of construction. If the
scope of the work or the estimated cost changes materially, applicants must file a revised
form with the Department of Finance. Applicants who fail to comply with the provisions of
this subdivision (b) must pay a penalty at the time of issuance of a Certificate of Eligibility
and Reasonable Cost of five hundred dollars ($500) plus an amount equal to one percent
(1%)of the amount stated on the Certificate of
Eligibility and Reasonable Cost in excess of ten thousand dollars ($10,000), provided that
HPD may waive the penalty for projects receiving substantial governmental assistance.
The penalty prescribed by this 5-05(b) is in addition to the normal filing fees prescribed in
5-05(fl. Notwithstanding the foregoing, an applicant who performs an abatement of leadbased paint hazards shall not be required to file a notice of intent form (form J-11) with the
Department of Finance prior to commencement of work, and no additional fee or penalty
shall be due and owing HPD at the time of issuance of a certificate of eligibility and
reasonable cost for failure to file such notice of intent.
(c) Documentation required of all applicants. All applicants must maintain documents
relating to claimed costs as specified in 5-07(b), and all completed applications for final
tax.. benefits.... must include... the. following docume~tatio~ of the... applicant's -actual
expenditures properly organized and collated in time sequence:
(1) Original and four copies of the application form; and
(2) one copy of the following:
(i) Paid bills, cancelled checks, installment agreements, and the work contract and any
change orders, indicating work, location of building, and quantity in appropriate unit of
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measurement all in a form corresponding to the individual items on the Itemized Cost
Breakdown Schedule so that the claimed costs can be audited by HPD against the
specific items and allowances contained in such schedules; or
(ii) A disposition of funds statement or certification by the Commissioner of the cost of
the work based upon other program records where the alterations, improvements, or
conversions are undertaken aided by a loan made pursuant to Article 8, 8-a, 11, 12, 15 or
22 of the Private Housing Finance Law or 312 of the United States Housing Act of 1964
(42 U.S.C. 1452 b), or the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12701 et seq.) or 696-a or 99(h) of the General Municipal Law, or any other
City-supervised housing program, or, in the discretion of the Office, other governmentallysupervised housing program; or
(iii) in the discretion of the Office, a certification by an independent certified public
accountant of the cost of the conversion, alterations or improvements, in accordance with
generally accepted auditing standards and based upon the books and records of the
owner provided that the original records are retained as set forth in 5-07 and are
available for audit purposes; or
(iv) in the case of applications for buildings under 5-03(a)(9), a designated special
application form may be submitted including the general contract (if applicable), trade
payment breakdown schedule and an HPD inspection report or an HPD-approved
construction monitor's certificate of completion. The Office, upon receipt of appropriate
documentation, may determine that each such project has incurred eligible costs of at
least twenty thousand dollars ($20,000) in CRC per unit and grant a Certificate of Eligibility
and Reasonable Cost for one hundred and fifty percent(150%) of such amount, i.e., thirty
thousand dollars ($30,000) in CRC per unit; and
(3) Plans and amendments, if any, approved by the Department of Buildings; and
(4) Proof of commencement of construction:
(i) Copy of a building permit issued by the Department of Buildings; or
(ii) The Office may require that the date of commencement of construction be
confirmed by an affidavit from the owner together with, at the discretion of the Office, such
other information as the Office may require to substantiate such date, including but not
limited to, an affidavit of a registered architect or licensed professional engineer, a copy of
the work contract, invoices, cancelled checks or such other proof of payment as the Office
shall require, and a contractor's affidavit. If a Permit from the Department of Buildings is
not required and if the cost of the work claimed is less than ten thousand dollars ($10,000)
the Office may, in its discretion, accept an owner's affidavit as to the date of the
commencement of construction, and waive some or ail of the additional evidence or
information. If an application contains a series of major capital improvements, the
commencement of construction date is that of the first major capital improvement for
which benefits are claimed; and
(5) Proof of completion:
(i) A Permanent Certificate of Occupancy; or
(ii) A Temporary Certificate of Occupancy for all of the dwelling units therein, and an
affidavit from a registered architect or licensed engineer and the owner that the only work
remaining to secure a permanent Certificate of Occupancy is work to be performed- or
completed in space to be used exclusively for non-residential purposes; or
(iii) Asign-off by the Department of Buildings as evidenced by the J-3, a computer
printout or such other official documentation as may be required by the Department of
Buildings and is acceptable to the Office if issued in connection with an eligible alteration,
improvement or conversion; or
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(iv) if none of the above are required by law, completion of construction may be
confirmed by the submission of such information as may be required by the Office,
including but not limited to a copy of the work contract, invoices, cancelled checks or such
other proof of payment as the Office shall require, disposition of funds statements,
certification by the Commissioner based on program records or inspection, and a
contractor's affidavit which confirm such completion of construction date to the satisfaction
of the Office. If none of the documents set forth above are required by law and if the cost
of the work claimed is less than ten thousand dollars ($10,000), the Office may, in its
discretion, accept an owner's affidavit as to the date of completion of construction and
waive some or all of the additional evidence and information.
(6) Proof of compliance with the Nousing Maintenance Code. (a) For applications
received on or before December 30, 2004: Unless a Certificate of Occupancy has been
issued within one year of the date of submission of the application, for all units for which
benefits are claimed, a report of search from the Division of Code Enforcement of the
Department of Housing Preservation and Development dated no earlier than ninety days
prior to the date of submission of an application is required. in lieu of the latter, a building
profile from the Department of Housing Preservation and Development may be submitted
indicating that there are no violations of record which are classified as hazardous or
immediately hazardous. If hazardous or immediately hazardous violations of record
appear, the applicant must either clear the violations of record or submit affidavits:
(i) from a registered architect, or a licensed professional engineer, certifying that the
architect or engineer has inspected the premises and that work necessary to remove any
hazardous or immediately hazardous violations has been completed. If a violation
classified as hazardous or immediately hazardous was caused by a tenant and the tenant
refuses to grant access to the applicant to correct the violation, such violation will not
preclude eligibility provided the applicant can establish these facts with clear and convincing evidence; and
(ii) from the owner, certifying that the architect or engineer has inspected the premises
and that work necessary to remove any hazardous or immediately hazardous violations
has been completed. If a violation classified as hazardous or immediately hazardous was
caused by a tenant and the tenant refuses to grant access to the applicant to correct the
violation, such violation will not preclude eligibility provided the applicant can establish
these facts with clear and convincing evidence.
(b) For applications received after December 30, 2004 for which a Certificate of
Occupancy has not been issued within one year of the date of submission of such
application for all units for which benefits are claimed: If a search by the Department of
Housing Preservation and Development dated no earlier than ninety days prior to the date
of submission of such application indicates that there are any violations of record which
are classified as hazardous or immediately hazardous, the applicant must either clear the
violations of record or submit affidavits:
(i) from a registered architect, or a licensed professional engineer, certifying that the
architect or engineer has inspected the premises and that work necessary to remove any
hazardous or immediately hazardous violations has been completed. If a violation
classified as hazardous or immediately hazardous was caused by a tenant and the tenant
refuses to grant access to the applicant to correct the violation, such violation will not
preclude eligibility provided the applicant can establish these facts with clear and convincing evidence; and
(ii) from the owner, certifying that the architect or engineer has inspected the premises
and that work necessary to remove any hazardous or immediately hazardous violations
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has been completed. If a violation classified as hazardous or immediately hazardous was

caused by a tenant and the tenant refuses to grant access to the applicant to correct the
violation, such violation will not preclude eligibility provided the applicant can establish
these facts with clear and convincing evidence.
(7) Applications for benefits pursuant to 5-03(a)(2), (3) or (4) must provide proof of
compliance with the relocation requirements of 11-243(2) of the Act.
(8) Department of Buildings Certification for Tax Exemption and Tax Abatement (Form
J-3) or, if no permits from the Department of Buildings are required, at the option of the
Office, alternative documentation to prove absence of Building Code violations.
(9) Proof that the building has been registered with HPD in accordance with the
provisions of article two of subchapter four of the Housing Maintenance Code.
(10) (i) For applications received on or after March 19, 2006, an a~davit from the
owner certifying that whenever any household appliance in any dwelling unit, or any
household appliance that provides heat or hot water for any dwelling unit in the multiple
dwelling, is installed or replaced with a new household appliance on or after March 19,
2006, such new appliance shall be certified as Energy Star. If applicable, such affidavit
may instead certify (A) that an appropriately-sized Energy Star certified household
appliance is not manufactured, such that movement of walls or fixtures would be
necessary to create sufficient space for such appliance, and/or (B) that an Energy Star
certified boiler or furnace of sufficient capacity is not manufactured.
(ii) For purposes of this paragraph (10), (A) "household appliance" shall mean any
refrigerator, room air conditioner, dishwasher or clothes washer, within a dwelling unit in
the multiple dwelling that is provided by the owner, and any boiler or furnace that provides
heat or hot water for any dwelling unit in the multiple dwelling, and (B)"Energy Star" shall
mean a designation from the United States Environmental Protection Agency or
Department of Energy indicating that a product meets the energy efficiency standards set
forth by the agency for compliance with the Energy Star program.
(d) Additional documentation for buildings owned as cooperatives or as condominiums.
Buildings owned as cooperatives or condominiums must submit the following additional
documentation:
(1) An opinion of counsel which states that the building is a Iegal cooperative or
condominium and which has a prospectus accepted for filing by the Attorney General, or
was formed prior to the date of prospectus was required by law, or is exempt for other
reasons from the filing requirements; and
(2) If benefits are claimed under 5-03(g)(2)(i), evidence of the first sale of a
condominium unit or shares of stock allocable to a cooperative unit in a form required by
the Office; and
(3) A copy of the prospectus or offering plan which has been accepted for filing by the
Attorney General, and all subsequent amendments which become effective prior to the
time the Office issues a Certificate of Eligibility and Reasonable Cost for any cooperative
or condominium eligible for tax abatement pursuant to 5-03(g).
(4) Provided, however, if benefits are being claimed under 5-03(g)(2)(iii) or 5-03(g)
(2)(iv), evidence shall be submitted with respect to assessed valuation per unit and the
average per room sale price during the three years preceding the appiicatiorr in a form
prescribed by the Office.
(e) Additional documentation for certain alterations or improvements. Certain
alterations and improvements require the approval of designated agencies and such
additional documentation as the Office shall require. The "Schedule of Required
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Information, Permits and Sign-offs" set forth in 5-09 of these rules contains a list of the
documentation that the Office requires for specific alterations and improvements.
(fl Filing Fees. (1) Applicants must submit anon-refundable application fee with each
application in the amount of five hundred ($500) dollars. Upon notification of a
determination of reasonable cost in excess of ten thousand dollars ($10,000) and prior to
issuance of the Certificate of Reasonable Cost, the applicant must pay an additional fee in
an amount equal to one percent (1%) of the reasonable cost in excess of ten thousand
dollars ($10,000). If applicable, the penalty prescribed by 5-05(b) must also be paid at
this time.
(2) If a Code Violation Search report is not submitted with an application submitted on
or before December 30, 2004 in accordance with 5-05(c)(6)(a), an additional nonrefundable filing fee equal to the fee charged by the HPD Division of Code Enforcement,
currently thirty dollars ($30), must be submitted to cover the cost of processing such
search. This fee must be submitted simultaneously with the five hundred dollar ($500)
application fee.
(3) Payment of all fees must be made by certified or cashier's check or a check from an
attorney or owner/agent payable to the "NYC Department of Finance NYCJ51 Fee". In the
event a check is returned unpaid, the applicant shall be assessed a fifty dollar ($50)
processing fee and all further payments with respect to the application shall be made by
certified or cashier's check.
(g) Issuance of a certificate of eligibility. (1) The Office shall review each application to
determine if it is eligible for tax benefits in accordance with the provisions of these rules
and the Act. The Office will inform an applicant if the file is incomplete; however, it is the
applicants responsibility to complete the application within twenty-four months of the initial
filing date as provided in 5-03(d)(5). Provided, however, that for projects carried out with
substantial governmental assistance and which have received a Temporary Certificate of
Eligibility, the applicant must complete the application within one year of the completion of
construction.
(2) The certified reasonable cost for all eligible items of work shall be calculated as
follows:
(i) The certified reasonable cost for all eligible items of work shall be the lesser of the
applicants actual cost, or the allowance set forth in the Itemized Cost Breakdown
Schedule.
(ii) The certified reasonable cost for all eligible items of work shall be reduced where
such items are allocable in whole or part to, or service, ineligible portions of the building, if
any, in the same ratio as the ineligible space bears to the aggregate floor area of the
building.
(iii) For buildings eligible for enriched abatement as provided in 5-06(c)(1) the total
certified reasonable cost shall not exceed the lesser of the owner's total actual
expenditure or one hundred fifty percent (150%) of the total of the Itemized Cost
Breakdown Schedule amounts set forth in 5-08.
(iv) For buildings subject to the dollar limit set forth in 5-06(d), the aggregate certified
reasonable cost may not exceed the maximum eligible CRC set forth therein.
(v) In the event there is any identity of interest between the owner and the contractor;
cost shall be determined based on subcontracts and the evidence of actual cost of labor
and materials.
(3) The Office shall issue a Certificate of Eligibility and Reasonable Cost for all
approved applications. Failure to produce satisfactory supporting documentation of the
cost of an alteration, improvement or conversion, or any part thereof, or any of the items
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specified in this chapter may result in the denial of a Certificate of Eligibility and
Reasonable Cost.
(h) Filing procedure with the Department of Finance. (1) For cooperatives and
condominiums with an average transitional assessed valuation per dwelling unit of less
than forty thousand dollars ($40,000), in order to receive tax abatement beginning on the
first day of any tax quarter, the applicant must file a Certificate of Eligibility and
Reasonable Cost with the appropriate borough Office of the Real Property Assessment
Bureau of the Department of Finance during the third month preceding the start of such
tax quarter; i.e.: January 1 through January 31 for the tax quarter beginning April 1, April 1
through April 25 for the tax quarter beginning July 1, July 1 through July 31 for the tax
quarter beginning October 1, October 1 through October 31 for the tax quarter beginning
January 1.
(2) For cooperatives and condominiums with an average transitional assessed valuation
per dwelling unit of forty thousand dollars ($40,000) or more, and for all other buildings
receiving benefits, in order to receive tax abatement beginning on the first day of January
or Juiy of any year, the applicant must file a Certificate of Eligibility and Reasonable Cost
with the appropriate borough office of the Real Property Assessment Bureau of the
Department of Finance during the third or sixth month preceding the start of such tax
period; i.e.: January 1 through January 31 or April 1 through April 25 for the tax period
beginning July 1, or July 1 through July 31 or October 1 through October 31 for the tax
period beginning January 1.
(3) The following documents must be filed with the Certificate of Eligibility and
Reasonable Cost during the time periods indicated above:
(i) Department of Buildings Certification for Tax Exemption and Tax Abatement (Form
J-3) or, if no permits from the Department of Buildings are required, at the option of the
Office, alternative documentation to prove absence of Building Code violations;
(ii) Certified Tax Search or copy of Installment Agreement;
(iii) Department of Finance Application for Tax Exemption and Tax Abatement.
Source URL: http://rules.citvofnewyork.us/contenVsection-5-05-application-procedure-documentation
Links:
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Section 5-06: Tax Exemption/Tax Abatement Commencement: Dtiuation and Amount.
Page I of 1 I
Published on NYC Rules (http://rules.citVofnewyork.us)

Home > Section 5-06: Tax Exemption/iax Abatement Commencement: Duration and Amount.

Title 28: Department of Housing Preservation and Development ~,i > Chapter 5: J51
(a) Tax Exemption.(1) Except as provided in 489(9) of the Real Property Tax Law, for
a period of fourteen years, or thirty-four years if the eligible project was a moderate
rehabilitation or a project eligible under 5-03(a)(9), any increase in assessed valuation of
properties which receive a Certificate of Eligibility and Reasonable Cost shall be exempt
from taxation on any increase in assessed valuation resulting from the certified reasonable
cost of the alteration, improvement or conversion performed pursuant to the Act. If the
conversion, alteration or improvement results in an increase in the gross cubic content of
the building, the portion of the building which represents the additional cubic content shall
not be exempt from any increase in assessed valuation. In the case of fourteen year
exemptions, any increase in assessed value which results from an alteration,
improvement or conversion shall be fully exempt for ten years and
such exemption shall be reduced by twenty per cent (20%) in each succeeding year. In
the case of thirty-four year exemptions, any increase in assessed value which results from
an alteration, improvement or conversion shall be fully exempt for thirty years and such
exemption shall be reduced by twenty per cent(20%) in each succeeding year.
(2) The land improved by a building with a Certificate of Eligibility and Reasonable Cost
shall not be exempt from an increase in assessed valuation. An increase in assessed
valuation resulting from an alteration, improvement or conversion other than one made
pursuant to the Act shall not be exempt.
(3) Tax exemption shall commence on the first day of July following the commencement
of tax abatement with the following exceptions:
(i) If tax abatement commences on Jufy first, tax exemption shall start at the same time;
(ii) Tax exemption may commence on the first day of any tax quarter designated by the
Office following the commencement of construction if the property is:
(A) Aided by a loan made pursuant to Article 8, 8-a or 15 of the Private Housing
Finance Law; or
(B) Aided by a loan made pursuant to 312 of the United States Housing Act of 1964
(42 U.S.C. 1452 b); or
(C) Started after July 1, 1983 by a housing development fund company organized
under Article 11 of the Private Housing Finance Law and carried out either
(a) with substantial governmental assistance or
(b) in a property transferred from the City where alterations and improvements are
completed within seven years of the date of such transfer; or
(D) Started after July 1, 1988 by or on behalf of a company not qualified under any of
the above provisions, which is anot-for-profit corporation qualified pursuant to 501(c)(3)
of the internal Revenue Code and which has entered into a regulatory agreement with the
HPD requiring operation of the property as housing for Iow and moderate income persons
and families; or
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(E) Started after July 1, 1992, and aided by a loan or grant under Article 11, 12 or 22 of
the Private Housing Finance Law, 696-a (Article 16) or 99(h) of the General Municipal
Law, or the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et
seq.).
(iii) A Temporary Certificate of Eligibility may be issued in the discretion of the Office for
projects eligible for tax benefits pursuant to 5-06(a)(3)(ii) above.
(b) Tax exemption limitation. (1) Except for special circumstances enumerated in
paragraph (4) of this subdivision (b), property in the Borough of Manhattan south of or
adjacent to the south side of one hundred tenth street with an average assessed valuation
per dwelling unit of thirty-eight thousand dollars ($38,000) or more after completion of
construction, calculated by dividing the amount of the total assessed valuation of the
residential portion of the property as determined under the Real Property Tax Law by the
number of dwelling units in the building after completion of construction of the conversion,
alteration or improvement, shall not be eligible for a tax exemption. The amount of
assessed valuation that will be exempt from taxation shall be calculated pursuant to the
following table:
Average Assessment
per Dwelling Unit After
Completion of Construction
Percent of Increased
Assessment Exempt
$18,000 or less
100%
$18,001$22,000
75%
$22,001$26,000
50%
$26,001$30,000
25%
$30,001$37,999
0%
$38,000 or more
No exemption granted
(2) In calculating the amount of assessed valuation that will be exempt from taxation
pursuant to the formula in paragraph (1) above, the full amount of total assessed valuation
that does not represent increased assessed valuation shall be applied in such formula
prior to the inclusion of any amount of increased assessed valuation.
(3) Where the teat property is occupied in part for residential purposes and in part for
non-residential purposes, unless the non-residential portion is on aseparately-assessed
tax lot, the assessed valuation of the property shall be allocated by the Office between the
residential and non-residential portions based on pro rata square footage. In computing
the total assessed valuation per dwelling unit under paragraph (1) above, only the amount
of valuation so allocated to the residential portion shall be considered.
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(4) Exception to Assessed Valuation Limitation to Allow Additional Affordable Housing

Units.
(i) Notwithstanding the provisions in paragraph (1), the Office may reduce or remove
the limitations on the exemption from taxation provided in such paragraph with respect to
a particular property undergoing alteration or improvement, upon application of the
property owner and a determination by the Commissioner that the increased benefit will
increase the number of dwelling units that will be affordable to persons of low and
moderate income, and the increased benefit is necessary to make economically viable
units or to improve the quality of dwelling units that will be affordable to persons of low or
moderate income.
(ii) As used in this paragraph (4), the term "persons of low or moderate income" shall
mean persons who would qualify for housing subsidies pursuant to section two hundred
thirty-five (235) of the National Housing Act, as amended, at one hundred thirty-five
percent (135%) of the income limitations provided therein. The term "affordable," when
used in connection with persons of low or moderate income, shall mean that such persons
shall not be required to spend more than thirty percent of their adjusted annual income for
housing.
(iii) Upon receiving an application under this paragraph (4) in proper form, the Office
shall immediately submit it to the community board for the area in which the project is
located, which may, within forty-five days of receiving it and after a public hearing, make
recommendations to the Office as to the application. The Office shall act on the
application within sixty days of receiving it from the property owner in proper form, but not
before expiration of the time for the community board to make its recommendations,
unless the board has acted sooner.
(iv) The Office will not approve any application under this paragraph (4), unless the
owner enters into an agreement with the City which guarantees that at (east thirty percent
(30%) of the apartments in the building receiving tax benefits shall be rented or sold to
persons of low or moderate income at rentals or carrying charges not exceeding thirty
percent (30%) of their annual income, and that such apartments will, on vacancy, be rerented or re-sold to persons of low or moderate income for a period of no less than fifteen
(15) years. Such units must be rehabilitated or newly created units resulting from
substantial rehabilitation or conversion.
(5) For purposes of this subdivision (b), the assessed valuation shall be the actual
assessed valuation not transitional assessed valuation.
(6) Further exceptions to assessed valuation limit. The following conversions,
alterations, and improvements are not subject to the limitations set forth in paragraphs (1)
and (2) of this subdivision (b).
(i) Alterations or improvements under 5-03(a)(6); and
(ii) Conversions of residential units covered by Article 7-C of the Multiple Dwelling Law
under 5-03(a)(2); and
(iii) Alterations or improvements under paragraphs (5), (7) or (8) of 5-03(a) when
carried out:
(A) with substantial governmental assistance, or with the aid of grants, loans or
subsidiesfrom any not-for-profit philanthropic organization one of whose primary purposes
is providing housing affordable to persons of low or moderate income as defined in 5-06
(b)(4)(ii); or
(B) with mortgage insurance by the New York City Residential Mortgage Insurance
Corporation or the State of New York Mortgage Agency; or
(C) within the areas in New York County set forth in 5-10; or
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(D) pursuant to a program established by the Federal Housing Administration, Federal

National Mortgage Association, Federal Home Loan Mortgage Corporation or Government
National Mortgage Association for the rehabilitation of existing multiple dwellings for
persons of low or moderate income, or a program of mortgage insurance for the
rehabilitation of existing multiple dwellings pursuant to 223(fl of the National Housing Act,
as amended, or a program of mortgage insurance established by the Federal Housing
Administration for the rehabilitation of existing multiple dwellings for persons of low or
moderate income; provided that properties receiving benefits under such programs are
located in a neighborhood strategy area, as defined by HUD (24 CFR Part 881), or in one
of the neighborhood preservation areas listed in 5-10.
(7) Assessed valuation limits for projects commenced prior to June 1, 1986.
Conversions, alterations and improvements commenced after September 15, 1983 and
before June 1, 1986 are subject to the exemption limitations set forth in 5-06(b) whether
they are located in Manhattan or in any other Borough of the City, unless they qualify
under one of the exceptions to the assessed valuation limit set forth in 5-06(b)(6), or are
located in a designated neighborhood preservation area, as listed in 5-06(d)(3)(iii)(C).
For purposes of this subdivision (b), the Clinton neighborhood preservation area is exempt
from the assessed valuation limits of 5-06(b) only for conversions, alterations and
improvements commenced prior to June 28, 1988.
(c) Tax abatement. (1) Enriched abatement. In the case of
(i) alterations or improvements carried out pursuant to 5-03(a)(6) which are carried out
with substantial governmental assistance or with the aid of grants, loans or subsidies from
any not-for-profit philanthropic organization one of whose primary purposes is providing
low or moderate income housing or financed with mortgage insurance by the New York
City Residential Mortgage Insurance Corporation or the State of New York Mortgage
Agency or pursuant to a program established by the Federal Housing Administration for
rehabilitation of existing multiple dwellings in a neighborhood strategy area, as defined by
HUD (24 CFR Part 881); or
(ii) any conversion, alteration or improvement of property located in census tracts in
which seventy-five percent(75%) or more of the population live in households which earn
fifty percent (50%) or less of the median household income of the City, involving
substantial governmental assistance; or
(iii) any alteration, improvement or conversion carried out pursuant to 5-03(a)(9);
the abatement of taxes on such property, including the land shall not exceed the lesser of
the total actual cost of the alterations, improvements or conversion or one hundred fifty
percent (150%) of the total certified reasonable cost of the alterations or improvements,
and the annual abatement of taxes shall not exceed twelve and one-half percent (12.5%)
of such certified reasonable cost.
(2) Maximum annual and aggregate abatement.
(i) In all cases not qualifying for the enriched abatement described in 5-06(c)(1), the
maximum annual and aggregate abatement for each of the eligible projects listed in 5-03
(a) is as follows:
Project
Maximum Annual
Abatement
Maximum Total
Abatement
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Section 5-06: Tax Exemption/1'aY Abatement Commencement: Duration and Amount.
5-03(a)(1)
8 1/3% of CRC
90% of CRC
5-03(a)(1)
8 1/3% of CRC
50% of CRC
5-03(a)(2)
8 1/3% of CRC
90% of CRC
5-03(a)(2)
8 1/3% of CRC
50% of CRC
5-03(a)(3)
8 1/3% of CRC
50% of CRC
5-03(a)(4)
8 1/3% of CRC
90% of CRC
~~*
5-03(a)(5)
8 1/3% of CRC
90% of CRC
'"~~
5-03(a)(6)
8 1/3% of CRC
100% of CRC
5-03(a)(7)
8 1/3% of CRC
90% of CRC
5-03(a)(8)
8 1/3% of CRC
90% of CRC*
5-03(a)(10)
8 1/3% of CRC
90% of CRC
****
5-03(a)(11)
8 1/3% of CRC
90% of CRC
*'`~~~~
5-03(a)(6)
12'/Z% of CRC
150% of CRC
~~~~*~
5-03(a)(9)
12'/Z/o of CRC
150% of CRC
~"
~~*~*
Pale 5 of 1 I
Conversions within the County of New York on any tax lot bordering on or south
'"~k~~ of 96th Street.
"~~"" Conversions within the County of New York.
~t"" Only work specified on the Itemized Cost Breakdown Schedule is eligible for tax
benefits. However, the CRC for such qualifying work shall be equal to the actual
cost of the work. Notwithstanding the foregoing, the maximum allowable
abatement may not exceed 50% of CRC if done in connection with a nonresidential conversion located within the County of New York.
'~t'`"" Non governmentally-assisted moderate rehabilitation.
"`"""" Only eligible for 50% of CRC'ifidone in connection with anon-residential
conversion located within the County of New York.
*'*`"' Pursuant to 5-06(c)(1): governmentally-assisted moderate rehabilitation and
substantial rehabilitation.
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(ii) In cases qualifying for the enriched abatement described above in 5-06
(c)(1), the maximum aggregate and annual abatement is:
(3) Tax abatement shall commence as follows:
(i) for cooperatives and condominiums with an average transitional assessed valuation
per dwelling unit of less than forty thousand ($40,000) dollars, on the first day of the tax
quarter following the filing of the Certificate of Eligibility and Reasonable Cost with the
Real Property Assessment Bureau of the Department of Finance, except as provided in
subparagraphs (ii) and (iii) below:
(ii) for cooperatives and condominiums with an average transitional assessed valuation
per dwelling unit of forty thousand ($40,000) dollars or more, and for all other buildings, on
the first day of January or July, whichever date next follows the filing of the Certificate of
Eligibility and Reasonable Cost with the Real Property Assessment Bureau of the
Department of Finance;
(iii) for property aided by a loan made pursuant to the authorities listed below or owned
by a type of corporation listed below, on the first day of any tax quarter designated by the
Office following the commencement of construction:
(A) Article 8, 8-a, or 15 of the Private Housing Finance Law or 312 of the United
States Housing Act of 1964 (42 U.S.C. 1452b), or
(B) if commencement of construction occurred after July 1, 1988, by or on behalf of a
not-for-profit corporation qualified pursuant to 501(c)(3) of the Internal Revenue Code
and which has entered into a regulatory agreement with HPD requiring operation of the
property as housing for low and moderate income persons and families, or
(C) if commencement of construction occurred after July 1, 1992, Article 11, 12 or 22 of
the Private Housing Finance Law or 696-a (Article 16) or 99(h) of the General Municipal
Law or the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et
seq.).
(4) Taxes may be abated each year by the amount specified in the 5-06(c), provided
that in no event may taxes be abated for more than twenty years nor may the abatement
in any twelve month period exceed the amount of taxes payable in such twelve month
period.
(d) Tax abatement limitations. (1) Dollar limit. For conversions, alterations or
improvements commenced on or after September 15, 1983, except in special
circumstances enumerated in paragraphs (2) and (3) of this subdivision (d), the certified
reasonable cost of a conversion, alteration or improvement eligible for abatement shall not
exceed the amounts specified in the following table:
Number of Rooms
Per Dwelling Units
Maximum Eligible
CRC
2'~2
$12,60Q
3'/2
$15,000
4'/2
$17,400
5'/Z
$19,800
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Section 5-06: Tax ExemptionlTax Abatement Commence~vent: Duration and Amount.
Page 7 of 11
(2) Enriched dollar limit. An abatement may exceed the limitations set forth in
paragraph (1) of this subdivision (d) by a maximum of twenty-five percent (25%) of the
applicable limitation if, upon written request of the applicant, the Office determines that:
(i) in the case of a conversion pursuant to paragraphs (1), (2),(3) or (4) of 5-03(a), the
increased cost is necessary to comply with applicable law; or
(ii) in the case of an alteration or improvement pursuant to 5-03(a)(7), the increased
cost is necessary to eliminate unhealthy or dangerous conditions or replace inadequate
and obsolete sanitary facilities in a satisfactory manner; or
(iii) in the case of an alteration or improvement pursuant to 5-03(a)(8), the increased
cost is necessary to conserve energy in a satisfactory manner; or
(iv) in the case of an alteration or improvement pursuant to 5-03(a)(5), the increased
cost, to the extent such cost is not offset by any and all tax credits received as a result of
the alteration or improvement, is necessary to comply with any provision of law regulating
historic or landmark buildings or structures.
(3) Exceptions to dollar limit. The following conversions, alterations, and improvements
are not subject to the limitations set forth in paragraphs (1) and (2) of this subdivision (d),
but are subject to the limitations of paragraph (4) of this subdivision (d).
(i) alterations or improvements under 5-03(a)(6); and
(ii) conversions of residential units covered by Article 7-C of the Multiple Dwelling Law
under 5-03(a)(2); and
(iii) alterations or improvements under paragraphs (5), (7) and (8) of 5-03(a) when
carried out:
(A) with substantial governmental assistance or with the aid of grants, loans or
subsidies from any not-for-profit philanthropic organization one of whose primary purposes
(b)(4)(ii); or
(B) with mortgage insurance provided by the New York City Residential Mortgage
Insurance Corporation or the State of New York Mortgage Agency; or
(C) within the areas set forth in 5-10; or
(D) pursuant to a program established by the Federal Housing Administration, Federal
rehabilitation of existing multiple dwellings pursuant to 223(fl of the National Housing Act
of the neighborhood preservation areas listed in 5-10. --(4) (i) Tax abatement for a multiple dwelling shall be available only if:
(A) for alterations and improvements commenced after June 28, 1988 and on or prior
to June 15, 1993, the actual assessed valuation of such multiple dwelling, including land,
does not exceed an average of thirty thousand dollars ($30,000) per dwelling unit at the
time of commencement of construction of the alterations or improvements; or
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Page 8 of 1 1
(B) for alterations and improvements commenced after June 15, 1993, the actual
assessed valuation of such multiple dwelling, including land, does not exceed an average
of forty thousand dollars ($40,000) per dwelling unit at the time of commencement of
construction of the alterations or improvements.
Unless the non-residential portion is aseparately-assessed parcel, when the building is
occupied in part for residential purposes and in part for non-residential purposes, the
assessed valuation of the property shall be allocated by the Office between the residential
and the non-residential portions based on pro rata square footage, and only the amount of
valuation so allocated to the residential portion shall be considered in computing the
assessed valuation per dwelling unit.
(ii) The limitations set forth in this paragraph (4) shall not apply to:
(A) multiple dwellings owned as a cooperative or condominium; or
(B) multiple dwellings in which units have been newly created by substantial
rehabilitation of vacant buildings or conversions; or
(C) alterations or improvements under 5-03(a)(6); or
(D) conversions of residential units covered by Article 7-C of the Multiple Dwelling Law
under 5-03(a)(2); or
(E) alterations or improvements under paragraphs (5), (7) and (8) of 5-03(a) when
carried out:
(a) with substantial governmental assistance or with the aid of grants, loans or
subsidies from any not-for-profit philanthropic organization one of whose primary purposes
(b)(4)(ii); or
(b) with mortgage insurance provided by the New York City Residential Mortgage
Insurance Corporation or the State of New York Mortgage Agency; or
(c) within the areas set forth in 5-10; or
(d) pursuant to a program established by the Federal Housing Administration, Federal
rehabilitation of existing multiple dwellings pursuant to 223(fl of the National Housing Act
of the neighborhood preservation areas listed in 5-10.
(5) Tax abatement benefits shall not be available to any limited-profit housing company
established pursuant to article two of the Private Housing Finance Law to reduce taxes
beneath the applicable statutory minimum tax, provided however, the benefits of the Act
shall apply to alterations and improvements commenced after June 1, 1986 by any such
company provided the project is otherwise eligible. Such multiple dwelling shall be eligible
for benefits where at least one building-wide major capital improvement as set forth in
5-03(a)(6)(i) or a new roof (at least seventy-five percent(75%) of the aggregate roof area
is replaced. or covered with. new.. roofing).. or building-wide. submetering of all individual
dwelling units is part of the application for benefits. Furthermore, to the extent that such
alterations or improvements are financed with grants, loans or subsidies from any federal,
state or local agency or instrumentality, such multiple dwelling,
building or structure, shall be eligible for benefits only if the limited-profit housing company
has entered into a binding and irrevocable agreement with the commissioner of housing of
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Page 9 of I 1
the state of New York, the supervising agency, the New York city housing development
corporation, or the New York state housing finance agency prohibiting the dissolution or
reconstitution of such limited-profit housing company pursuant to section thirty-five of the
Private Housing Finance Law for not less than fifteen years from the commencement of
benefits. The abatement of taxes on such property, including the land, shall not be an
amount greater than ninety percent (90%) of the certified reasonable cost of such
alterations or improvements, nor greater than eight and one-third percent (8'/3%) of such
certified reasonable cost in any twelve month period, nor be effective for more than twenty
years. The annual abatement of taxes in any twelve month period
shall in no event exceed fifty percent(50%) of the applicable exemption granted pursuant
to article two of the Private Housing Finance Law or other applicable laws or fifty percent
(50%) of payments required to be made in lieu of taxes in such twelve month period.
Notwithstanding the foregoing, the annual abatement of taxes for alterations or
improvements commenced prior to June 1, 1986, may not be applied to reduce the
amount of taxes payable or the amount of payments required to be made in lieu of taxes
in any twelve month period to an amount less than the minimum amount of taxes required
to be paid pursuant to 3 of the Private Housing Finance Law (ten percent (10%) of
shelter rent or assessed value at time of acquisition of the property by the housing
company; whichever is higher).
(e) Restricted eligibility projects. (1) The following buildings shall be eligible for limited
tax benefits as set forth herein
(i) For any building.
(A) in which conversion, alteration or improvement commences on or after January 1,
1982, and
(B) which is located in the County of New York within an area designated herein as a
minimum tax zone, the benefits of the Act shall not be applied to abate or reduce the taxes
upon the land portion of such real property, which shall continue to be taxed based upon
the assessed valuation of the land and the applicable tax rate at the time such taxes are
levied; provided, however, that the foregoing limitation with respect to abatement of taxes
shall not apply:
(a) to any multiple dwelling which is eligible for benefits based upon moderate
rehabilitation pursuant to 5-03(a)(6) or
(b) to any conversion, alteration or improvement which is carried out with substantial
(ii) For any building:
(A) in which conversion, alteration or improvement commenced on or after January 1,
1982, and
(B) which is located in the County of New York within an area designated herein as a
tax abatement exclusion zone, the benefits of the Act shall not be applied to abate or
reduce the taxes upon such real property, which shall continue to be taxed based upon
the assessed valuation of the land and the improvements and the applicable tax rate at
the time such taxes are levied; provided, however, that the foregoing limitation shall not
deprive such real property of any benefits of exemption from taxation of an increase in
assessed valuation to which it is entitled pursuant to the Act; and provided further that the
foregoing limitation with respect to abatement of taxes shall not apply:
(a) to any Alteration or Improvement designated herein as a major capital
improvement, provided that the maximum amount of tax abatement which may be applied
against taxes due in any tax year by any such multiple dwelling for any such alterations
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Page 10 of I 1
and improvements shall be limited to an amount not in excess of two thousand five
hundred dollars ($2,500) per dwelling unit, or
(B) to any conversion, alteration or improvement which is carried out with substantial
(2) The minimum tax zone in the County of New York is as follows: all tax lots now
existing or hereafter created within the following designated area or adjacent or
contiguous to either side of any street forming the boundary of such designated area,
which area is bounded and described as follows: beginning at Central Park West and 86th
Street; thence easterly along 86th Street to the East River; thence southerly along the
easterly boundary of New York County to 23rd Street; thence westerly along 23rd Street
to Third Avenue; thence southerly along Third Avenue to 14th Street; thence westerly
along 14th Street to Broadway; thence southerly along Broadway to Houston Street;
thence westerly along Houston Street to West Street; thence northerly along West Street
to 14th Street; thence easterly along 14th Street to 9th Avenue; thence northerly along 9th
Avenue to 57th Street; thence westerly along 57th Street to the Hudson River; thence
northerly along the westerly
boundary of New York County to 72nd Street; thence easterly along 72nd Street to
Central Park West; thence northerly along Central Park West to 86th Street and Central
Park West, which is the place of beginning.
(3) The tax abatement exclusion zone in the County of New York is as follows: all tax
lots within the following designated area or adjacent or contiguous to either side of any
street forming the boundary of such designated area or adjacent or contiguous to either
side of any street designated as included in such area, which area is bounded and
described as follows: beginning at the intersection of 96th Street and Central Park West;
thence easterly to Park Avenue; thence southerly along Park Avenue to the intersection of
Park Avenue and 72nd Street; thence easterly along 72nd Street to York Avenue; thence
northerly along York Avenue to the Franklin Delano Roosevelt Drive; thence northwesterly along the Franklin Delano Roosevelt Drive to as far as 96th Street; thence
easterly to the easterly border of New York County; thence southerly along such border to
34th Street; thence westerly along 34th Street to 8th Avenue; thence northerly, along 8th
Avenue and Central Park
West as far as 96th Street, which is the place of beginning. Additionally, the following
north/south and east/west thoroughfares shall be included in the tax abatement exclusion
zone; 96th Street between Central Park West and the East River; 86th Street between
Central Park West and the East River; 79th Street between West End Avenue and the
East River; 72nd Street between West End Avenue and the East River; West End Avenue
from 72nd Street to 86th Street; and Riverside Drive from 72nd Street to 96th Street.
1) Then %>
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Home > Section 5-07: Revocation of Tax Exemption/Tax Abatement for Failure to Substantiate Claimed Costs and Declaratory Rulings.

Title 28: Department of Housinq Preservation and Development ~,> > Chapter 5: J51
(a) Reserved.
(b) Reserved.
(c) Reserved.
(d) Reserved.
(e) Revocation or reduction of tax exemption and tax abatement for failure to
substantiate claimed costs. All applications are subject to post-audit by HPD.
(1) In addition to the basis for revocation of tax benefits provided in chapter thirty-nine
of this title, the Commissioner may reduce or revoke past or future tax exemption or tax
abatement if he or she finds that the application for tax exemption or tax abatement,
including all affidavits submitted in connection with the application, contains a false
statement or false information as to a material matter or omits a material matter relating to
claimed costs. It is the responsibility of the recipient of the benefits, whether the original
applicant or any subsequent owner, including any condominium or cooperative, to
document all claimed costs in a manner acceptable to HPD and in accordance with
generally accepted auditing standards so that original checks or such other proof of
payment as the Office shall require can be properly matched against the items on the
Itemized Cost Breakdown Schedule and so that the auditors may examine original
documentation
for the cost of all supplies and the cost of all subcontracts. If a recipient of tax benefits
hereunder fails to substantiate claimed costs to the satisfaction of HPD, the CRC shall be
reduced or revoked as applicable. In the event that HPD determines on the basis of the
total available evidence that the application contains a false statement or false information
as to a material matter, or omits a material matter, relating to claimed costs, all benefits
hereunder shall be revoked.
(2) Tax benefits will not be revoked for failure to substantiate the amount of claimed
costs after the expiration of six years from the later of the date of the approval of the
Certificate of Eligibility and Reasonable Cost as stated therein or the date upon which the
tax benefits commence, except that (1) where an audit has been initiated within the sixyear period, but a final determination has not been rendered, or (2) where the applicant
has not made payment in full for the work comprising the project within two years after the
applicant has collected the Certificate of Eligibility, then such benefits may be revoked
subsequent to such six year period.
(3) All books, records and documents, which in accordance with generally accepted
auditing standards; may be used..to substantiate entries in the applicants books... and
records relating to claimed costs, shall be kept at all times available for inspection by the
Office and shall be retained for a period of at least six years from the later of the date of
the approval of the Certificate of Eligibility and Reasonable Cost as stated therein or the
date upon which the tax benefits commence except that (1) where an audit has been
initiated and a final determination has not been rendered, such records shall be retained
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until such determination has been made and (2) where an applicant has entered into an
installment arrangement with respect to payment for work comprising all or a part of the
project, such records shall be retained until the Iater of (i) three years from the date on
which the applicant collects the Certificate of Eligibility and Reasonable Cost,
and (ii) one year following payment in full for the work comprising the project.
(4) If an institutional lender has become a successor in interest to the original owner of
such building or structure, and, after diligent efforts to obtain original contracts, checks
and other records normally reviewed by the Office to verify claimed costs, is unable to
obtain part or all of such records, the Office shall permit the substitution, in whole or in
part, of documentation certified by the institutional lender showing the amounts advanced
by the institutional lender pursuant to the mortgage loan to finance such alterations or
improvements along with such other documentation as the Office may require.
(5) The revocation of tax exemption and/or abatement for failure to substantiate
claimed costs hereunder shall be conducted in accordance with the procedures
established pursuant to chapter thirty-nine of this title. Notwithstanding the foregoing, if,
after HPD delivers an Initial Notice in accordance with chapter thirty-nine of this title, the
Taxpayer fails to submit documentation to substantiate claimed costs during the Comment
Period as defined in such Initial Notice, HPD shall deliver a Determination Notice to the
Taxpayer in accordance with such chapter.
(~ Reserved.
(g) Reserved.
(h) Reserved.
(i) Declaratory rulings. A declaratory ruling with respect to an analysis of a specific or
hypothetical site, project, fact pattern or document or an interpretation of the applicability
of a specific provision of 489 of the Real Property Tax Law or 11-243 of the
Administrative Code or these rules to an actual or hypothetical site, project, fact pattern or
document or any other issue related to eligibility may be given in the discretion of the
Office upon payment of anon-refundable fee in the amount of seven hundred fifty dollars
($750) payable at the time such declaratory ruling is requested in writing. In no event shall
a declaratory ruling bind the Office as to the overall eligibility of a project for J-51 benefits.
At the discretion of the Commissioner, this fee may be waived for projects supervised or
funded by HPD or any other New York City or New York State agency or instrumentality.
Q) Reserved.
(k) As provided in 39-03, the revocation of benefits for noncompliance with the Act or
this chapter shall not exempt any unit from continued compliance with the requirements of
the Act or this chapter.
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Section 5-08: Itemized Cost Breakdown Schedule.
Page 1 of 12

Home > Section 5-08: Itemized Cost Breakdown Schedule.

The following allowances apply to alterations, improvements and conversions for which
the commencement of construction occurred after June 1, 1997. For alterations,
improvements and conversions for which commencement of construction occurred on or
before June 1, 1997, the Itemized Cost Breakdown Schedule in effect as of the date of
such commencement of construction shall apply, except in the case of asbestos
abatement, for which the allowance set forth below shall apply to all applications pending
on or submitted after November 1, 1997.
Maximum Allowance for All Buildings
(a) General Construction.
Units
Allowance
#"
(1) Asbestos abatement'
#'
(2) Boiler room enclosure
sq. ft.
7.50
#"
(3) Bulkhead
sq. ft.
8.50
(4) Ceiling, cellar (fireproof gyp bd)
sq. ft.
1.60
See table
(5) Ceilings, gypsum board or plaster rooms
280.
(6) Cement wash or parge

waterproofing
sq. ft.
1.00
(7) Ceramic tile, bathroom2
bathrooms
750.
#"
(8) Chimney, masonry
floors
1200.
#'
(9) Compactor, see Item 39. Refuse
#"
(10) Concrete, structural slab3
cu. yd.
500.
(11) Concrete, structural foundation3
cu,yd.
250.
(12) Concrete, flatwork
sq. ft.
4.00
#*
(13) Abatement of lead-based paint

hazards5
See Itemized
Cost
Breakdown
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Schedule for
Abatement of
Lead-Based
Paint
Hazards in
(h) below
(14)
Demolition &removal allowances
rooms
200.
Doors (incl. frame and

hardware)
#`
(15)
Main entrance and lobby
set
4000.
#"
(16)
Hollow metal
doors
475.
(17)
Wood Swing
doors
135.
(18)
Bi-fold closet
Bi-fold
110.
(19)
Sliding closet(2 doors)
set
125.
(20)
Storm
doors
180.
# ""
(21) Dumbwaiters converted to closets units
250.
(22)
Dumbwaiters sealed
units
110.
(23)
Entrance, stoops, steps, concrete
risers
225.
#"
(24) Fire escapes
Flights
2000.
(25) Floor joists (incl. sub floor)3
joists
165.
(26)
Flooring, finished wood
rooms
500.
(27)
Flooring, resilient w/underlayment rooms
450.
#'"
(28) Insulation, wall (thermal only)
sq. ft.
0.50
#"
(29) Insulation, roof(thermal only)
sq. ft.
0.85
#~
(30) Leaders and gutters
floors
40.
#`
(31) Lintel replacement
units
250.
#`
(32)
Mailboxes
d.u.
50.
#'
(33)
Masonry
sq. ft.
7.50
#'
(34) Parapet including coping
lin. ft.
135.
(35) Partitions, gypsum board or

plaster
rooms
600.
(36) Partitions, framing
rooms
350.
#*
(37) Pointing'
sq. ft.
2.00
#'
(38)
lin. ft.
25.
Railings, roof
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Sectio 5-08: Itemized Cost Breakdown Schedule.
#"
(39)
Pane 3 of 12
Refuse
#'
chute, complete
floors
750.
#*
compactor, central unit
compactors
6800.
recycling, base separating
chutes
17000.
floors
750.
(40) Roof surface
sq. ft.
1.25
(41) Skylight including screense
units
1300.
(42) Stairs, steel
flights
2200.
(43) Structural steel'
Ibs.
1.50
#'
(44) Window, single pane glass9
units
140.
# ~'
(45) Window, insulating glass
units
175
a~ "*
(46) Window, insulating glass over 24

sf
sq. ft.
10.
#'*
(47) Window, storm with screen
units
65.
#'
(48) Window guards, approved

security
units
175
#~
(49) Window guards, childproof
units
25.
Units
Allowance
unitsfloors
45,000+7000
units
7000.
motor
3500.
#*
unit
(turntable &/or diverter)

#~ ~
#"
recycling, floor control panel
(b) Elevator.
Item
#"
(1)
#~
(2) Convert manual to automatic10
New elevator, complete
Elevator, partial
#*
(3)
#~
(4),
Traction machine"
units
10,000..
#"
(5)
One-speed controller"
controller
6200.
#'
(6)
Two-speed or variable
controller"
controller
8000.
#'
(7)
floors
400.
Motor"
Cables
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Pale 4 of 12
#~
(8)
Shaftway floor
doors
800.
#'
(9)
Floor call station
floors
200.
#"
(10)
interlocks
interlocks
280.
#"
(11)
Door operator
units
2500.
#~
(12) Car
#'
Reline cab
units
4200.
#*
Top of car safety device
units
2800.
Units
Allowance
(1) Bathtubst2
tubs
450.
#*
(2) Hot water heater/tank (input)
MBH
See table
#'*
(3) insulation, pipe (also for heating)
lin. ft.
2.50
(4) Kitchen sink13
sink
175.
(5) Lavatory12
lays
150.
(c) Plumbing.
Item
Piping
#~
(6)
Water main, risers, branches
d.u.
1700.
#~
(7)
Waste and vent(complete)
d.u.
1500.
#'
(8)
Water service, street connectt4
lin. ft.
110.
#"
(9)
Sewer, street connection
lin. ft.
200.
#"
(10)
Gas, risers and connections
d.u.
275.
#~
(11) Sprinklers, heads only
heads
30.
#'
(12) Sprinklers, piping and heads
heads
220.
#*
(13) Standpipe
floor
600.
#"
(14) Tank, water storage

(15) Water dosets'z
gallon
.._
units
1.50
200.._
(16) Food waste disposers13
units
300.
(d) Heating.
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Item
Page 5 of 12
Units
Allowance
# **
(1) Boiler-burner (output)15
MBH
See table
# "*
(2) Boiler (output)
MBH
See table
# "~
(3) Burner (output)15
MBH
See table
(4) Convectors or radiators
units
250
(5) Electronic boiler control system
units
2500.
(6) Exhaust duct (int. kit &bath only)
unit
310.
#"
(7) Metal boiler stack
floors
400.
#'
(8) Oil tank
gallon
See table
#"
(9) Piping, heat mains, risers, branch
rooms
220.
Units
Allowance
#*
(e) Electric.
Item
#"
(1) Ali new apartment wiring
d.u.+room
400.+420.
#'
(2) Apartment wiring only, adequate

(risers and meters separate)'
d.u.
370.
#*
(3) Service equipment and risers16

Electric service equipment
#"
with individual meter
entry+d.u.
1500.+160.
#~
with master meter
entry+d.u.
1500+110.
d.u.
300.
500.
350..........
#'
Apartment panel
Risers
#'
with individual meter's
d.u.
#'
with master meter16
d.0
#~
(4) Intercom, door opener
d.u.
100.
(5) Outlet on new circuit
circuit
100.
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Page 6 of 12
#*
(6) Smoke detectors, hard wired
d.u.
100.
#`
(7) Submetering installation"
d.u.
280.
(8) Cogeneration equipmentt9
kilowatt
400
Units
Allowance
(1) Kitchen cabinets1e
lin. ft.
55.
(2) Kitchen cabinets, base &

counter18
lin. ft.
70.
(3) Medicine cabinets inc. mirrort2
units
85.
(4) Range (minimum 24 in. width)'3
units
300.
(5) Refrigerator (min. 12 cf nominal)13 units
420.
(6) Steam or chemical cleaning
0.80
(f) Moderate Rehabilitation Only.
Item
sq. ft.
(g) Landmarks Projects Only

Items of work listed on this schedule only
per 5-03(a)(5)
Boiler/Burner Table
(maximum allowance)
Item
Output in MBH (thousand BTU per hour)
0-2,000 MBH
2,000-6,000
MBH
> 6,000 MBH
$1,500.16.50/MBH
2O,000.7.25/MBH
47,600.2.65/MBH
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Section 5-08: Itenlizecl Cost Brelkdown Schedule.
Page 7 of 12
Boilerburnert5
Burnert5
$500.4.75/MBH
6000.2.00/MBH
8,300.1.65/MBH
Boiler
(existing
burner)
$1,000.11.75/MBH
14,000.5.25/MBH
39,300.1.00/MBH
e width=90% cellpadding="0">
Domestic Hot Water Table
(maximum allowance)
Input in MBH
0-600
>600
Allowance
$460. 9.10/MBH
$1,900. 6.70/MBH
le>
Oil Tank Table
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Page 8 of 12
(maximum allowance)
Size in Gallons
Allowance
~ ~~~~
$500. 1.10/gal.
>4000
$2,900. .50/gal.
le>
Asbestos Abatement Table
(maximum allowance)
Internal Linear
Feet
$1600. + $10./linear ft.
Internal Square
Feet
$1600. + $10./sq. ft.
le>
(h) Abatement of Lead-Based Paint Hazards
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Item
Page 9 of 12
Units
Allowance
for Nontargeted
Areas
AIlowance
for
Targeted
Areas
~"
(1)
Inspection for Lead-Based

Paint Hazards20
d.u.
common
area2t
400.
400.
#fi ~
(2)
Risk Assessment of LeadBased Paint Hazards20
d.u.
common
area22
250.
250.
#"
(3)
Ceilings, lamination
rooms
320.
420.
#*
(4)
Ceilings, common area,

lamination
sq. ft.
1.80
2.50
~*
(5)

hardware), main entrance and
lobby
set
4600.
5000.
#'
(6)

hardware), hollow metal
doors
550.
800.
#*
(7)

hardware), wood swing
doors
155.
350.
#`
(8)

hardware), bi-fold closet
bi-fold
125.
300.
#"
(9)
Sliding closet(2 doors, incl.

frame and hardware)
set
145.
300.
#*
(10)
Flooring, finished wood
rooms
575.
1250.
#*
(11)
Flooring, resilient
w/underlayment
rooms
515.
585.
#"
(12)
Partitions, gypsum board or

plaster
rooms
690.
1170.
#"
(13)
Partitions, common area
sq. ft.
1.80
2.50
#~
(14)
Stairs, steel (inci. risers, pans,

railings, stringers, &. newel
posts),stripped
steps
45.
60.
#*
(15)
Window, insulating glass
units
200.
425.
#`
(16)
Window, insulating glass over

24 sf
sq. ft.
12.
30.
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Section 5-08: ICemized Cost Breakdown Schedule.
Page 10 of 12
#"
(17)
Convectors or radiators, new
units
260.
275.
#"
(18)
Convectors or radiators,
stripped
units
115.
150.
#'
(19)
Risers, stripped
lin. ft.
15.
20.
#~
(20)
Kitchen cabinets18
lin. ft.
65.
75.
#~
(21)
Kitchen cabinets, base &

counter1e
lin. ft.
80.
105.
#'
(22)
Medicine cabinets (incl.

mirror)23
units
95.
125.
#~
(23)
Remove and install window

sill
units
115.
150.
#~
(24)
Remove and install

baseboard, wood molding
lin. ft.
2.50
3.50
#'
(25)
Remove and install closet

shelf and pole
set
55.
75.
" Denotes Major Capital Improvement (MCI).

"" Denotes Energy Conversation Items which shall also be considered Major Capital
Improvements.
# Denotes that the item allowance may be reduced by proportion of non-residential
space where the item serves both residential and non-residential space. (Items wholly
within or serving the non-residential space receive no allowance.)
1. For (1) removal or encapsulation of any friable asbestos when done as part of a
substantial rehabilitation requiring an alteration permit, or (2) for removal of asbestos
Thermal System Insulation (TSI) on other rehabilitation or (3) for removal of other friable
asbestos (and not roofing, siding or flooring) pursuant to a report from a certified asbestos
inspector describing condition, quantity and location of asbestos containing materials to be
removed including microscopic analysis. TSI shall mean insulation applied to heating,
ventilation or air conditioning systems, hot or cold domestic water systems for the purpose
of preventing heat transfer or water condensation. TSI shall include insulation on boilers,
water tanks, air handling equipment and ducts, piping, pipe fittings or valves.
2. For bathroom with ceramic the floor and full the wainscot. Maximum one per apartment
unless the apartment has two or more bedrooms. This item is eligible as an MCI if new
water main, riser, and branch piping is installed throughout and if new ceramic the and at
least two new bathroom fixtures are installed in at least 90 percent of the bathrooms.
3: This item requires an affidavit from an engineer or architect certifying 'that he has'
personal knowledge of the installation and that the quantity claimed was installed. It also
requires site photographs or other evidence satisfactory to HPD documenting the
installation of the item.
4. This item includes inner walkways, courtyards, cellar slabs and the public sidewalk.
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Section 5-OK: Itemized Cost E3reakdown Schedule.
Page 11 of 12
5. For construction commenced on or after August 2, 2004, requires (a)"an abatement'

of lead-based paint hazards, as defined in 40 Code of Federal Regulations part 745 or any
successor regulations, in any existing dwelling, including any vacant or occupied dwelling
unit or any common area, and (b) proof of lead-based paint hazards pursuant to an
"inspection" and/or "risk assessment", as defined in 40 Code of Federal Regulations part
745 or any successor regulations. Notwithstanding the foregoing, no such benefit shall be
given for (a) any abatement performed to comply with a notice of violation issued for a
violation of article fourteen of subchapter two of chapter two of title 27 of the
Administrative Code, or (b) any abatement performed in a dwelling unit or in the common
areas in such dwelling unless ali of the lead-based paint hazards identified in such
dwelling unit or in all of the common areas in such dwelling have been abated.
Furthermore, the deleading of lead-based paint hazards pursuant to a NYC Dept. of
Health and Mental Hygiene order that is commenced prior to August 2, 2004 will continue
to be eligible for J-51 benefits provided that there is an approved contract and sign-off.
The allowance for such deleading of lead-based paint hazards will be per contract.
6. For substantial alterations and conversions only. The maximum quantity for this item
is the number of new rooms created in the space where the demolition was done.
7. Not eligible if brickwork is covered by cement wash or other coating.
8. For skylights over 16 sq. ft. The maximum allowance for eligible skylights under 16 sq.
ft. shall be 50 percent of allowance listed.
9. Not eligible without new or existing storm window.
10. Plus alI other applicable partial elevator items listed.
11. For buildings over eight stories the approved quantity shall be equal to the actual
quantity increased by 10 percent for each floor over eight.
12. Maximum of one per apartment unless the apartment has two or more bedrooms. This
item is eligible as an MCI if new water main, riser, and branch piping is installed
throughout and if new ceramic the and at least two new bathroom fixtures are installed in
at least 90 percent of the bathrooms.
13. Maximum of one per apartment.
14. For water service 2 1/2" in diameter or greater than approved length shall be equal to
one and one-half times the actual installed length.
15. Oil, gas, or combination burner.
16. The "Adequate Wiring" MCI as set forth in the prior Rules has been divided into its
components which consist of "Apartment wiring only, adequate," and "Service equipment
and risers."
17. For submetering, the owner must comply with the rent decrease requirements of
DHCR, and the project must consist of a building-wide submetering in all individual
dwelling units.
18. The eligible length cannot exceed 8 feet in any apartment.
19. This item requires an affidavit from an engineer or architect certifying the installation
of a natural gas-fired electric cogeneration system or the conversion or modification of an
existing oil-fired cogeneration system to a natural gas-fired electric cogeneration system.
Such affidavit also must provide that the waste heat from the cogeneration unit is used for
heating. domestic. hot water orspace heating. or cooling of the. residential units.
20 In order to qualify for benefits for Inspection for Lead-Based Paint Hazards or Risk
Assessment of Lead-Based Paint Hazards,(a) the inspection or risk assessment must be
an "inspection" or "risk assessment' as defined in 40 Code of Federal Regulations part
745 or any successor regulations, (b) the inspection or risk assessment must have
determined that lead-based paint hazards exist in such dwelling, including any vacant or
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Section 5-08: Itemized Cosy Breakdown Schedule.
Page 12 of 12
occupied dwelling unit or any common area, and (c) an "abatement' of lead-based paint
hazards, as defined in 40 Code of Federal Regulations part 745 or any successor
regulations, must have been performed in response to such inspection or risk assessment
determination. Notwithstanding the foregoing, no such benefit shall be given for the
inspection or risk assessment of a dwelling unit or common area if (a) any abatement
performed in a dwelling unit or common area in response to such inspection or risk
assessment determination was
also pertormed to comply with a notice of violation issued for a violation of article fourteen
of subchapter two of chapter two of title 27 of the Administrative Code, or (b) all of the
lead-based paint hazards identified in such dwelling unit or in all of the common areas in
such dwelling by such inspection or risk assessment have not been abated. Furthermore,
such benefits for inspection or risk assessment of lead-based paint hazards shall only be
given for such inspections or risk assessments commenced on or after August 2, 2004.
21 For dwellings with no more than three stories, the allowance for both non-targeted
areas and targeted areas for inspection of all of the common areas in such dwelling is
$400. For dwellings with four to six stories, the allowance for both non-targeted areas and
targeted areas for inspection of all of the common areas in such dwelling is $800. For
dwellings with at least seven stories, the allowance for both non-targeted areas and
targeted areas for inspection of all of the common areas in such dwelling is $1200.
22 For dwellings with no more than three stories, the allowance for both non-targeted
areas and targeted areas for risk assessment of all of the common areas in such dwelling
is $250. For dwellings with four to six stories, the allowance for both non-targeted areas
and targeted areas for risk assessment of all of the common areas in such dwelling is
$300. For dwellings with at least seven stories, the allowance for both non-targeted areas
and targeted areas for risk assessment of all of the common areas in such dwelling is
$400.
23 Maximum of one per apartment unless the apartment has two or more bathrooms.
1) Then %>
~~~
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Sectioiz 5-09: Additional DocumenCaCion for Certain Alterations or Improvements.
P1ge 1 o~f 4
Published on NYC Rules (ham://rules.cityofnewyork.us)

Home > Section 5-09: Additional Documentation for Certain Alterations or Improvements.

Applications for alterations requiring a new or amended Certificate of Occupancy must
include: (a) PW-1, PW-1A, PW-1B and Initial Work Permits; and (b) final Certificate of
Occupancy;(c) such additional documentation as may be applicable or re-quested.
The following major capital improvements require the approval of designated agencies
on the forms indicated below, and such additional documentation as the Office shall
require. The forms listed herein may be revised or added to by the Department of
Buildings, in which case the Office will require the forms as revised. If a Borough Office
was not using any of the referenced forms when documentation was obtained, the Office
may require the forms then in effect or as listed in the prior Rules and Regulations.
(a) Asbestos abatement.
(1) Asbestos Inspection Report(ACP-7) or Asbestos Removal Plan.
(b) Adequate wiring, new wiring or new service.
(1) Certificate of Electrical Inspection (Form BEC 16A, DOB) or contractor's affidavit if
the Certificate is not applicable.
(c) Boiler/burners: boiler and oil burner replacement.
(1) Notice of Proposed Steam or Hot Water Boiler Installation for boilers serving 6 units
or more and over 350,000 BTUs(B form 900A signed by a boiler inspector, DOB); and
(2) Initial Work Permit or PW-2(DOB); and
(3) For boilers with a capacity of 350,000 BTUs or more, approved Application for
Certificate of Operation (APC 5-0, stamped) or Certificate of Registration (APC 501),
(Bureau of Air, Noise and Hazardous Materials, DEP); and
(4) Certificate of Electrical Inspection (Form BEC 16A, for Bulletin 8, Bureau of
Electrical Control, DOB) or contractor's affidavit if the Certificate is not applicable (e.g., if
boiler only); and
(5) Certificate of Approval for Oil Burning Installation (B Form 16A, Sign-off, DOB).
(d) Boiler/burners: boiler and gas burner or boiler and combination gas and oil burner.
(1) Schedule B Plumbing (PW-1 B) and/or Notice of Proposed Steam or Hot Water
Boiler I installation (B form 900A signed by a boiler inspector)(DOB); and
(Bureau of Air, Noise and Hazardous Materials, DEP); and
Electrical Control,..DOB)or contractor's affidavit if the. Certificate is not.applicable:
(e) Boiler/burners: boiler only.
(1) If burner is oil-fired, documents (1)through (5) in paragraph (c) above; or
(2) If burner is gas-fired, documents(1)through (4) of paragraph (d) above; or
(3) If burner is gas- and oil-fired, documents (1) through (4) of paragraph (d) above.
(fl Boiler/burners: burner upgrading.
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Section 5-09: Additional Documentation for Certain Alterations or Improvements.
Page 2 of4
(1) Approved Application for Certificate of Operation (APC 5-0, stamped, Bureau of Air,
Noise and Hazardous Materials, DEP).
(g) Boiler/burners: new central heating system.
(1) Plan/Work Approval Application with Schedule C Heating &Combustion Equipment
for oil or Schedule B Plumbing for gas (PW-1 with PW-1C or PW-16), or computer printout
showing scope of work (DOB); and
Electrical Control, DOB)or contractor's affidavit if the Certificate is not applicable; and
(4) Approved Application for Certificate of Operation (APC 5-0, stamped, Bureau Air,
Noise and Hazardous Materials, DEP); and
(5) Letter of Completion for DIR. 14 on work done pursuant to permit or computer
printout showing the sign-off date (DOB).
(h) Boiler enclosure.
(i) Chimney.
Q) Compactor: conversions to central and upgrading of incinerators.
(3) For replacement compactor, submit affidavit attesting to the replacement.
(k) Compactor: new or refuse chute.
(2) Computer print-out showing plumbing sign-off or B Form 505 (DOB) or Letter of
Completion for DIR. 14 on work done pursuant to permit or computer printout showing the
sign-off date (DOB).
(I) Deleading (removal of lead paint).
(1) Violation Notice, Approved Contract and Violation Dismissal (Department of Health)
(m) Elevator installation: replacement or upgrading (except replacement of hoist
cables).
(1) Approved Elevator application/Permit (ELV-1, DOB); and
(2) Sign-off by a DOB inspector (Form 73), or a stamped Elevator Inspection/Test
Report by Approved Private Elevator Inspection Agency (ELV-3, DOB); and
(n) Fire escapes.
(1) initial Work Permit or PW-2(DOB); and
(o) Hot water heater or hot water tank.
(1) Plan/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1 B), or
computer printout showing scope of work (DOB); and
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Section 5-09: Additional Docwnentation for Certain Alterations or Improvements.
Page 3 of4
(Bureau of Air, Noise and Hazardous Materials, DEP).
(p) Landmarks preservation work permit.
(1) Permit for Minor Work or Certificate of Appropriateness as applicable and Notice of
Compliance (Landmarks Preservation Commission); and
(2) Description of Landmarks Preservation work listed on or attached to the R-2 form
available from the J-51 Office.
(q) Oil tank installation.
(1) Plan/Work Approval Application with Schedule C Heating &Combustion Equipment
(PW-1 with PW-1 C), or computer printout showing scope of work (DOB); and
(3) Certificate of Approval for Oil Burning Installation (B Form 16A, Sign-off, DOB).
(r) Piping: gas.
(1) Plan/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1 B) or
computer printout showing scope of work (DOB); and
(3) Computer printout showing plumbing sign-off or B Form 505(DOB); and
(s) Piping: waste and vent.
(1) Plan/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1 B) or
computer printout showing scope of work,(DOB); and
(3) Computer printout showing plumbing sign-off or B Form 505 or Letter of Completion
for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off
date (DOB).
(t) Piping: water mains and risers.
(1) Plan/Work Approval Application with Schedule B (PW-1 with PW-1 B) or computer
printout showing scope of work,(DOB); and
(3) Computer printout showing plumbing sign-off or B Form 505 (DOB) or Letter of
Completion for DIR. 14 on work done pursuant to permit or computer printout showing the
sign-off date (DOB).
(u) Sealing dumbwaiters.
(1) initial Work Permit or PW-2 or Plan/Work Approval Application or computer printout
showing scope of work (PW-1, DOB); and
(v) Sewer(street connection).
(1) Street Opening Permit from the Bureau of Sewers (DEP) or Bureau of Highways
(Department of Transportation) as applicable.
(w) Sprinkler(new or relocated) plumbing and drainage.
(1) Plan/Work-Approval Application with Schedule B Plumbing (PW-1 with PW-1 B) or
computer printout showing scope of work,(DOB); and
(x) Standpipes.
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Section 5-09: Additional DocLm~entation for CerCain Alterations or Improvements.
Page 4 of4
(1) Plan/Work Approval (PW-1) or computer printout showing scope of work, (DOB);
and
(y) Structural items not physically verifiable.
(1) Affidavit from an architect or engineer specifying the nature, quantity and location of
work done (e.g. number of floor joists installed, cubic yards of structural concrete used,
pounds of structural steel used, etc.). In addition, length, size and placement of steel
beams may be required. Photographs of new floor joists in place are recommended.
(z) Water service (street connection).
(1) Street-Opening Permit (Bureau of Highways, DOT)
(aa) New water storage tank (no permit required for replacement, submit affidavit
attesting to replacement).
(1) Pian/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1 B) or
computer printout showing scope of work DOB); and
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Section 5-10: Neighborhood Preservation Program Areas.
Page 1 of 3

Home > Section 5-10: Neighborhood Preservation Program Areas.

Title 28: Department of Housing Preservation and Development m > Chapter 5: J51
Tax Exemption and Tax Abatement n~
AREAS IN THE COUNTY OF BRONX:
MOTT HAVEN: The area bounded by East 159th Street; Third Avenue; East 161st
Street; Prospect Avenue; East 149th Street; Jackson Avenue; Bruckner Expressway;
Major Deegan Expressway; Morris Avenue; East 149th Street and Park Avenue.
ALDUS GREEN: The area bounded by East 169th Street; East 167th Street;
Westchester Avenue; Sheridan Expressway; Longfellow Avenue; Randall Avenue; Tiffany
Street; Longwood Avenue; Bruckner Expressway; East 149th Street; and Prospect
Avenue.
MORRISANIA: The area bounded by Cross Bronx Expressway; Park Avenue; East
174th Street; Washington Avenue; Cross Bronx Expressway; Arthur Avenue; Crotona
Park North; Waterloo Place; East 175th Street; Southern Boulevard; Cross Bronx
Expressway; Sheridan Expressway; East 167th Street; East 169th Street; Prospect
Avenue; East 161st Street; Third Avenue; East 159th Street; Park Avenue; and Webster
Avenue.
HIGHBRIDGE-CONCOURSE: The area bounded by Washington Bridge-Cross Bronx
Expressway; Webster Avenue; Park Avenue; East 149th Street; and the Harlem River.
WEST TREMONT: The area bounded by West Fordham Road; East Fordham Road;
Webster Avenue; Cross Bronx Expressway; George Washington Bridge; and the Harlem
River.
BELMONT-BRONX PARK SOUTH: The area bounded by Southern Boulevard; Bronx
Park South; Boston Road; East 180th Street; Bronx River Parkway; Cross Bronx
Expressway; Crotona Parkway; East 175th Street; Waterloo Place; Crotona Park North;
Arthur Avenue; Cross Bronx Expressway; Washington Avenue; East 174th Street; Park
Avenue; Cross Bronx Expressway; and Webster Avenue.
KINGSBRIDGE: The area bounded by Van Cortlandt Park South; West Gun Hill Road;
Jerome Avenue; Bainbridge Avenue; East 211th Street and its prolongation; Conrail right
of way; Bedford Park Boulevard; Webster Avenue; East Fordham Road; West Fordham
Road; the Harlem River; Marble Hill Avenue; West 230th Street; Riverdale Avenue;
Greystone Avenue; Waldo Avenue; Manhattan College Parkway; and Broadway.
SOUND VIEW: The area bounded by the Cross Bronx Expressway; Bronx River
Parkway; East Tremont Avenue; White Plains Road; Randall Avenue; Olmstead Avenue;
Lacombe Avenue; Westchester Creek; East River; Bronx River; Westchester Avenue; and
Sheridan Expressway.
PELHAM PARKWAY: The area. -bounded by Adee Avenue; Mathews.... Avenue;.
Williamsbridge Road; Pelham Parkway South; Yates Avenue; Lydig Avenue;
Williamsbridge Road; Neil Avenue; Bogart Avenue; East Tremont Avenue; Bronx River
Parkway; and Bronx Park East.
AREAS IN THE COUNTY OF KINGS(BROOKLYN):
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Section 5-10: Neighborhood Preservation Program Areas.
Page 2 of 3
WILLIAMSBURG: The area bounded by Metropolitan Avenue; Union Avenue;

Conselyea Street; Wood Point Road; Frost Street; Morgan Avenue; Meserole Street;
Bushwick Avenue; Flushing Avenue; Union Avenue; Division Avenue; and the East River.
BEDFORD-STUYVESANT: The area bounded by Myrtle Avenue; Broadway; Ralph
Avenue; Atlantic Avenue; and Nostrand Avenue.
BUSHWICK: The area bounded by Flushing Avenue; Cypress Avenue; Menahan
Street; St. Nicholas Avenue; Gates Avenue; Wyckoff Avenue; Eldert Street; Irving Avenue;
Chauncey Street; Central Avenue; property line of the Cemetery of the Evergreens;
Conway Street; and Broadway.
EAST-NEW YORK: The area bounded by Jamaica Avenue; Elderts Lane; Atlantic
Avenue; Fountain Avenue; New Lots Avenue; and Sheffield Avenue.
SOUTH BROOKLYN (A): The area bounded by The Buttermilk Channel; Congress
Street; Hicks Street; Hamilton-Gowanus Parkway; the Gowanus Canal; and the Gowanus
Bay.
SOUTH BROOKLYN (B): The area bounded by Fourth Avenue; Pacific Street; Flatbush
Avenue; Sixth Avenue; and 15th Street.
SUNSET PARK: The area bounded by the Upper New York Bay; the Gowanus Bay;
15th Street; Prospect Park S.W.; Coney Island Avenue; Caton Avenue; Fort Hamilton
Parkway; 37th Street; Eighth Avenue; Long Island Railroad right of way; Gowanus
Expressway; 64th Street; Shore Parkway; and the Long Island Railroad right of way.
CROWN HEIGHTS: The area bounded by Pacific Street; Vanderbilt Avenue; Atlantic
Avenue; Ralph Avenue; East New York Avenue; Utica Avenue; Winthrop Street; Flatbush
Avenue; Parkside Avenue; Ocean Avenue; Empire Boulevard; Washington Avenue;
Eastern Parkway; Grand Army Plaza; and Flatbush Avenue.
CONEY ISLAND: The area bounded by the Coney Island Creek; Stillwell Avenue; the
Boardwalk West; and West 37th Street.
FLATBUSH: The area bounded by Parkside Avenue; Flatbush Avenue; Winthrop
Street; New York Avenue; Clarendon Road; East 31st Street; Newkirk Avenue; Nostrand
Avenue; Foster Avenue; New York Avenue; Avenue H; Flatbush Avenue; Avenue K; and
Coney Island Avenue.
EAST FLATBUSH: The area bounded by Clarkson Avenue; Utica Avenue; East New
York Avenue; East 98th Street; Church Avenue; Ralph Avenue; Clarendon Road; and
New York Avenue.
BROWNSVILLE: The area bounded by Broadway; Rockaway Avenue; Atlantic Avenue;
East New York Avenue; Christopher Avenue; Glenmore Avenue; Powell Street; Sutter
Avenue; Van Sinderen Avenue; Dumont Avenue; Junius Street; Livonia Avenue; Stone
Avenue; Linden Boulevard; Rockaway Avenue; Hegeman Avenue; Hopkinson Avenue;
Riverdale Avenue; East 98th Street; East New York Avenue; Ralph Avenue; Atlantic
Avenue; and Saratoga Avenue.
AREAS IN THE COUNTY OF NEW YORK(MANHATTAN):
LOWER EAST SIDE: The area bounded by East 14th Street; the East River; Delancey
Street; Chrystie Street; East Houston Street; and Avenue A.
MANHATTAN.VALLEY: The area. bounded by Cathedral Parkway (West-110th Street);
Central Park West; West 100th Street; and Broadway.
EAST HARLEM: The area bounded by East 142nd Street; the Harlem River; East 96th
Street; and Fifth Avenue.
l~ttp://rules.cityofnewyork.us/print/content/section-5- I 0-neighborhood-preservltion-progra... 2/16/2016
SeeYion 5-]0: Neighboi9iood Preservation Program Areas.
Pale 3 of 3
CENTRAL HARLEM: The area bounded by West 145th Street; the Harlem River; Fifth
Avenue; Cathedral Parkway (West 110th Street); Morningside Avenue; West 123rd Street;
St. Nicholas Avenue; West 141st Street; and Bradhurst Avenue.
HAMILTON HEIGHTS: The area bounded by West 155th Street; Bradhurst Avenue;
West 141st Street; Convent Avenue; West 140th Street; Amsterdam Avenue; West 133rd
Street; and Riverside Drive.
WASHINGTON HEIGHTS: The area bounded by the Harlem River; Teunissen Place;
West 230th Street; Marble Hili Lane; the Harlem River; West 155th Street; and the
Hudson River.
AREAS IN THE COUNTY OF QUEENS:
HALLETS POINTS: The area bounded by the East River-East Channel, Hallets Cove
and Pot Cove; Hoyt Avenue South; 21st Street; 31st Avenue; Vernon Boulevard; and 35th
Avenue.
JACKSON HEIGHTS-CORONA-EAST ELMHURST: The area bounded by Grand
Central Parkway; Long Island Railroad right of way; 110th Street; Corona Avenue; Long
Island Expressway; Junction Boulevard; Roosevelt Avenue; and Brooklyn-Queens
Expressway East.
RIDGEWOOD: The area bounded by Grand Avenue; Rust Street; 59th Drive; 60th
Street; Bleecker Street; Forest Avenue; Myrtle Avenue; the Long Island Railroad right of
way; and Queens-Brooklyn boundary line.
JAMAICA SOUTH: The area bounded by the Long Island Railroad right of way; New
York Boulevard; Southern Parkway (Sunrise Highway) and Van Wyck Expressway.
FAR ROCKAWAY: The area bounded by the Jamaica Bay-Mott Basin; Queens-Nassau
boundary line; Far Rockaway Beach; Beach 32nd Street; and Norton Drive.
AREAS IN THE COUNTY OF RICHMOND (STATEN ISLAND):
PORT RICHMOND: The area bounded by the Kill Van Kull; Jewett Avenue and its
prolongation; Forest Avenue; and the Willow Brook Expressway.
NEW BRIGHTON: The area bounded by the Kill Van Kull; Westervelt Avenue; Brook
Street; Castleton Avenue; and North Randall Avenue and its prolongation.
STAP~ETON: The area bounded by Victory Boulevard; the Upper New York Bay;
Vanderbilt Avenue; Van Duzer Street; Cebra Avenue; and St. Pauls Avenue.
FOX HILLS: The area bounded by Vandervilt Avenue; the Upper New York Bay; the
Staten Island Rapid Transit Railway right of way; and the Staten Island Expressway.
Source URL: httq://rules.citvofnewvork.us/contenUsection-5-10-neighborhood-preservation-program-areas
Links:
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DOCUMUENT 11
TITLE 28 RCNY,CHAPTER 39
("BENEFIT REVOCATION")
1.
~ Section 39-01: Definitions.
2.
Title 28: Department of Housing Preservation and Development>Chapter 39: Revocation of Tax
Benefits
39-01 Definitions.
As used in this chapter, the following terms shall have the following meanings:
Administrative Code."Administrative Code" shall mean the Administrative Code ofthe City
of New York.
Application. "Application" shall mean, collectively, any application for Tax Benefits
submitted to HPD and all documents submitted therewith.
Approval Date."Approval Date" shall mean the date upon which HPD approves the
Certificate of Eligibility as stated therein.
Assistant Commissioner. "Assistant Commissioner" shall mean an Assistant Commissioner
of HPD who has jurisdiction over Tax Benefit programs or such other person as maybe
designated in writing by the Commissioner of HPD.
Cause."Cause" shall mean any Violation, Misrepresentation, Omission, Failure, or
Discrimination, without regard to the date upon which HPD discovers such Violation,
Misrepresentation, Omission, Failure, or Discrimination.
Cause Date."Cause Date" shall mean the first date upon which any Cause occurred, without
regard to the date upon which such Cause was discovered by HPD.
Certificate of Eligibility. "Certificate of Eligibility" shall mean a written final determination
by HPD,issued on the basis of an Application, that a Property is eligible for the Tax Benefit. A
Certificate of Eligibility shall not include a declaratory ruling or any other preliminary or
informal communication regarding an actual or prospective Application.
Comments."Comments "shall mean any written comments and/or information that the
Taxpayer submits to HPD during the Comment Period regarding the alleged Cause for
Revocation of a Tax Benefit.
Comment Period."Comment Period" shall mean a period specified in the Initial Notice
during which the Taxpayer may submit Comments to HPD.
Cure Agreement."Cure Agreement" shall mean an agreement with a Taxpayer (i) requiring
such Taxpayer to cure a Cause for Revocation, and (ii) providing that the Tax Benefit will
remain in place if the Taxpayer and any successors or assigns comply with all oftheir respective
obligations thereunder; provided, however, that such agreement may provide for the partial or
temporary Revocation of a Tax Benefit in the event of a partial cure or a cure that does not
rectify a period ofnon-compliance.
Determination Notice."Determination Notice" shall mean a written notice from HPD to the
Taxpayer delivered after the Hearing or, if there is no Hearing, after the Comment Period stating
the determination ofthe Assistant Commissioner regarding whether a Tax Benefit will be
Revoked or will remain in effect. Any Determination Notice stating that a Tax Benefit will be
Revoked shall specify the Revocation Date.
DI3CR."DHCR" shall mean the Division of Housing and Community Renewal ofthe State of
New York or any successor agency.
Discrimination. "Discrimination" shall mean the direct or indirect denial to any person of any
housing accommodations in the Property receiving the Tax Benefit, or any ofthe privileges or
services incident to occupancy ofsuch housing accommodations,in violation of any local, state
or federal law prohibiting discrimination on the basis ofrace, color, creed, national origin,
gender, sexual orientation, disability, marital status, age, religion, alienage or citizenship status,
or the use of, participation in, or eligibility for a governmentally funded housing assistance
program,including, but not limited to, the section 8 housing voucher program and the section 8
housing certificate program,42 U.S.C. 1437 et. seq., or the senior citizen rent increase
exemption program, pursuant to either chapter seven or section five hundred nine of title twentysix ofthe Administrative Code; provided however, that "Discrimination" shall not include any
act for
which the applicable Law does not permit the Revocation ofthe Tax Benefit. The term
"disability" as used in this subdivision shall have the meaning set forth in 8-102 ofthe
Administrative Code.
DOF."DOF" shall mean the Department of Finance ofthe City of New York or any successor
agency.
Effective Date. "Effective Date" shall mean the date upon which a Tax Benefit commences
pursuant to applicable Law.
Expiration Date."Expiration Date" shall mean the date upon which a Tax Benefit would
expire pursuant to applicable Law.
Factual Issue. "Factual Issue" shall mean one or more issues offact which,if resolved in
favor ofthe Taxpayer, would require the conclusion that Cause for Revocation does not exist.
Failure. "Failure" shall mean the failure to (i) keep, preserve or make available upon request
by HPD any Records required to be kept and maintained pursuant to 39-06 herein or pursuant to
any other provision ofthis title or any Law,(ii) appear before HPD at any time or place named in
a summons,or (iii) give testimony under oath as may be relevant or material to HPD's inquiry
relating to a Tax Benefit.
Hearing."Hearing" shall mean an administrative hearing regarding one or more Factual
Issues to determine whether there is Cause to revoke a Tax Benefit, at which administrative
hearing the Taxpayer maybe represented by counsel and may present witnesses and other
evidence.
Hearing Notice. "Hearing Notice" shall mean a written notice from HPD to the Taxpayer
stating the date, time, and location of a Hearing, identifying one or more Factual Issues to be
addressed at such Hearing, and informing the Taxpayer that he or she may be represented by
counsel and may present witnesses and other evidence at such Hearing.
Hearing Officer."Hearing Officer" shall mean a person designated by HPD.
HPD."HPD" shall mean the Department of Housing Preservation and Development ofthe
City of New York or any successor agency.
Initial Notice. "Initial Notice" shall mean a written notice from HPD to the Taxpayer stating
the intention to Revoke a Tax Benefit for Cause and the proposed Revocation Date, identifying
the Property and Tax Benefit affected, briefly describing the alleged Cause for Revocation of
such Tax Benefit, stating the Comment Period, and providing an address for the submission of
Comments during the Comment Period.
Law."Law" shall mean, collectively, the Real Property Tax Law,any provision ofthe
Administrative Code enacted pursuant thereto, and any rule ofthe City of New York
promulgated pursuant thereto.
-2-
Misrepresentation. "Misrepresentation" shall mean the submission of an Application which

contains incorrect, misleading or fraudulent information.
Omission."Omission" shall mean the submission of an Application which omits material
information.
Pre-Hearing Notice. "Pre-Hearing Notice" shall mean a written notice from HPD to the
Taxpayer stating (i) that the Taxpayer may request a Hearing prior to Revocation regarding one
or more Factual Issues identified in such notice,(ii) the date by which such written request must
be received by HPD,and (iii) an address for the submission ofsuch written request.
Property. "Property" shall mean the real property receiving a Tax Benefit, including the land
and all improvements thereon.
Records."Records" shall mean all books, papers, records or other data which may be relevant
or material to any Application or Tax Benefit, including an annual schedule ofrents for each
dwelling unit in the Property where so required by the Law governing any Tax Benefit.
Revocation or Revoke."Revocation" or "Revoke" shall mean any partial or total suspension,
reduction, termination or revocation of any Tax Benefit which takes effect as of a date which
precedes the Expiration Date of such Tax Benefit, except where State law specifically authorizes
the termination of one Tax Benefit upon the commencement of another Tax Benefit.
Revocation Date."Revocation Date" shall mean the date as of which HPD proposes to
Revoke, or does Revoke, a Tax Benefit. The Revocation Date may be upon such date as HPD
may determine, but shall not precede the Cause Date.
Tax Benefit. "Tax Benefit" shall mean any exemption from or abatement of real property
taxation pursuant to Law with respect to which HPD makes determinations of eligibility.
Taxpayer. "Taxpayer" shall mean (i) the individual or entity located at the address to which
DOF sends tax bills for the applicable Property,(ii) any current holder offee title to such
Property whose interest is clearly recorded in the office ofthe City Register in the applicable
borough, and (iii) any current mortgagee ofsuch Property whose mortgage interest in such
Property is clearly recorded in the office ofthe City Register in the applicable borough.
Violation. "Violation" shall mean any non-compliance with applicable Law.
3.
Section 39-02: Revocation of Tax Benefits for Cause.
4.
Benefits
(a) HPD may Revoke a Tax Benefit for Cause at any time through the procedure set forth in
this section.
-3-
(b)HPD shall deliver an Initial Notice to the Taxpayer by the method provided herein for
delivery of notices.
(c) The Taxpayer may submit Comments to HPD during the Comment Period. HPD may
thereafter meet with such Taxpayer if such Comments contain either (i) credible evidence that a
Factual Issue exists, or (ii) a proposed cure for the alleged Cause for Revocation which HPD
determines maybe reasonably practicable.
(d)Reserved.
(e)If HPD determines that the alleged Cause for Revocation ofthe Tax Benefit is curable and
that the Taxpayer has proposed a practicable cure, HPD may enter into a Cure Agreement with
such Taxpayer. HPD may require the Taxpayer to record any such Cure Agreement against the
Property receiving such Tax Benefit.
(fl If HPD does not enter into a Cure Agreement with the Taxpayer and either receives no
Comments during the Comment Period or determines after reviewing such Comments that there
is no Factual Issue concerning the Cause for Revocation, HPD shall deliver a Determination
Notice to the Taxpayer by the method provided herein for delivery of notices stating that the Tax
Benefit has been Revoked as ofthe Revocation Date set forth therein.
(g)If HPD determines that a Factual Issue exists, HPD shall deliver aPre-Hearing Notice to
the Taxpayer by the method provided herein for delivery of notices.
(h)If the Taxpayer requests a Hearing after receiving aPre-Hearing Notice, HPD shall
schedule a Hearing and shall deliver a Hearing Notice to the Taxpayer by the method provided
herein for delivery of notices. Notwithstanding any provision ofthese rules to the contrary, a
Taxpayer may waive its right to a Hearing.
(i) At the Hearing, the Taxpayer will have an opportunity to present witnesses and other
evidence regarding any Factual Issue specified in the Hearing Notice.
(j) Upon conclusion of any Hearing, the Hearing Officer shall issue a written report containing
findings regarding the Factual Issues) and a recommendation regarding whether or not the Tax
Benefit should be Revoked.
(k)The Hearing Officer shall forwaxd such report and recommendation, together with the
record ofthe Hearing, to the Assistant Commissioner.
(1) The Assistant Commissioner shall review the report and recommendation ofthe Hearing
Officer, shall determine whether or not the Tax Benefit should be Revoked and shall thereafter
deliver a Determination Notice to the Taxpayer by the method provided herein for delivery of
notices.
Section 39-03: Requirements of Law Survive Revocation.

6.
Title 28: Department of Housing Preservation and Developinent>Chapter 39: Revocation of Tax
Renefit~
The Revocation of a Tax Benefit pursuant to this chapter shall not exempt any housing
accommodations in the applicable Property from continued compliance with the requirements of
the Law pursuant to which such Tax Benefit was granted, including, but not limited to, any
provision of such Law regarding rent control or rent stabilization. Such housing accommodations
shall be operated in compliance with such requirements of such Law until the Expiration Date or
for such longer period as maybe specified by Law.
7.
Section 39-04: Rent Stabilization.
8.
RP,11P,f1tC
At any Hearing, the information contained in DHCR's database shall be definitive evidence of
whether any housing accommodations have been registered with DHCR which may only be
rebutted by the presentation of certified copies of other DHCR documentation.
9.
Section 39-05: Notices.
10.
Renefit~
HPD shall deliver all Initial Notices, Pre-Hearing Notices, Hearing Notices, and
Determination Notices to the Taxpayer by mail to (i) the address to which DOF delivers real
property tax bills for the Property that is the subject of such notice,(ii) the last address indicated
in documents recorded in the office of the City Register for any Taxpayer holding fee title to or a
mortgage on the Property that is the subject of such notice, and (iii) the address of the owner or
agent registered for the Property that is the subject of such notice in accordance with article two
of subchapter four of chapter two of title twenty-seven of the Administrative Code, if any. Any
such notice shall be deemed to have been given upon the third day after such notice has been
deposited in the United States mail.
11.
Section 39-06: Record Keeping, Subpoenas and Oaths.
12.
Benefits
(a) For any Application granted on or after January 1, 2010, the Taxpayer shall keep and
maintain all Records for six years after the later of the Approval Date or the Effective Date, and
shall make such Records available for inspection by HPD upon written request therefor. For any
Application granted before January 1, 2010, the Taxpayer shall keep and maintain all Records
-5-
required by the Law pursuant to which the Tax Benefit was granted or by any other applicable
law or rule.
(b)At any time subsequent to the filing of an Application, HPD may(i) examine any Records,
and (ii) summon any person, including, but not limited to, the Taxpayer or an officer, director,
member or employee ofthe Taxpayer, or any person having, or having had, possession, custody
or control of Records requested or granted, or any person or firm that participated in the
construction, conversion or rehabilitation ofthe Property that requested or was granted the Tax
Benefit, to appear before HPD at the time or place designated in the summons or to produce such
Records, and to give such testimony under oath as maybe relevant or material to the Tax Benefit
requested or granted.
DOCUMUENT 12
IRC 42
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Page 1 of 43
Lexis Advance"'
Research
Documenta l RC Sec.42
w: - ~ ~~
...:
.,
Current through PL ll4-i14, approved 12/28/15, wiTh gaps of Pl_'s ll4-94 and 114-95
IRC
INTERNAL REVEfdUE CODE
Pd062MAL TAXES AND SURTAXES

LIABILITY
SUBTIYLE A. INCOME TAXES
CHAPTER 1.
SUBCHAPTER A. DETERMIIVATIOfV OF YAX
PART IV. CRED%TS AGAINST TAX
SUBPART D. BUSIPdESS RELATED
CREDITS
42. Low-income housing credit.

(a) In general. For purposes of section 38 [IRC Sec. 38], the amount of the lowincome housing credit determined under this section for any taxable year in the credit
period shall be an amount equal to-(1) the applicable percentage of
(2) the qualified basis of each qualified low-income building.
(b) Applicable percentage: 70 percent present value credit for certain new buildings;
30 percent present value credit for certain other buildings.
(1) Determination of applicable percentage. For purposes of this section-(A)In general. The term "applicable percentage" means, with respect to any
building, the appropriate percentage prescribed by the Secretary for the
earlier of-(i) the month in which such building is placed in service, or
(ii) at the election of the taxpayer-(I) the month in which the taxpayer and the housing credit agency
enter into an agreement with respect to such building (which is
binding on such agency, the taxpayer, and all successors in interest)
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as to the housing credit dollar amount to be allocated to such

building, or
(II) in the case of any building to which subsection (h)(4)(B) applies,
the month in which the tax-exempt obligations are issued.A month
may be elected under clause (ii) only if the election is made not later
than the 5th day after the close of such month. Such an election, once
made, shall be irrevocable.
(B) Method of prescribing percentages. The percentages prescribed by the
Secretary for any month shall be percentages which will yield over a SO-year
period amounts of credit under subsection (a) which have a present value
equal to-(i) 70 percent of the qualified basis of a new building which is not
federally subsidized for the taxable year a building described in paragraph
(1)(A), and
(ii) 30 percent of the qualified basis of a building not described in clause
(i).
(C) Method of discounting. The present value under subparagraph (8) shall
be determined-(i) as of the last day of the 1st year of the SO-year period referred to in
subparagraph (B),
(ii) by using a discount rate equal to 7Z percent of the average of the
annual Federal mid-term rate and the annual Federal long-term rate
applicable under section 1274(d)(1) [IRC Sec. 1274(d)(1)] to the month
applicable under clause (i) or (ii) of subparagraph (A) and compounded
annually, and
(iii) by assuming that the credit allowable under this section for any year
is received on the last day of such year.
(2) Minimum credit rate for non-federally subsidized new buildings. In the case of
any new building-(A) which is placed in service by the taxpayer after the date of the enactment
of this paragraph, and
(B) which is not federally subsidized for the taxable year,the applicable
percentage shall not be less than 9 percent.
(3) Cross references.
(A) For treatment of certain rehabilitation expenditures as separate new
buildings, see subsection (e).
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(B) For determination of applicable percentage for increases in qualified basis

after the Sst year of the credit period, see subsection (f)(3).
(C) For authority of housing credit agency to limit applicable percentage and
qualified basis which may be taken into account under this section with
respect to any building, see subsection (h)(7).
(c) Qualified basis; qualified low-income building. For purposes of this section-(1) Qualified basis.
(A) Determination. The qualified basis of any qualified low-income building
for any taxable year is an amount equal to-(i) the applicable fraction (determined as of the close of such taxable
year) of
(ii) the eligible basis of such building (determined under subsection (d)
~5))
(S) Applicable fraction. For purposes of subparagraph (A), the term
"applicable fraction" means the smaller of the unit fraction or the floor space
fraction.
(C) Unit fraction. For purposes of subparagraph (B), the term "unit fraction"
means the fraction-(i) the numerator of which is the number of low-income units in the
building, and
(ii) the denominator of which is the number of residential rental units
(whether or not occupied) in such building.
(D) Floor space fraction. For purposes of subparagraph (B), the term "floor
space fraction" means the fraction-(i) the numerator of which is the total floor space of the low-income units
in such building, and
(ii) the denominator of which is the total floor space of the residential
rental units (whether or not occupied) in such building.
(E) Qualified basis to include portion of building used to provide supportive
services for homeless. In the case of a qualified low-income building described
in subsection (i)(3)(B)(iii), the qualified basis of such building for any taxable
year shall be increased by the lesser of-(i) so much of the eligible basis of such building as is used throughout the
year to provide supportive services designed to assist tenants in locating
and retaining permanent housing, or
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(ii) ZO percent of the qualified basis of such building (determined without

regard to this subparagraph).
(2) Qualified low-income building. The term "qualified low-income building"
means any building-(A) which is part of a qualified low-income housing project at all times during
the period-(i) beginning on the 1st day in the compliance period on which such
building is part of such a project, and
(ii) ending on the last day of the compliance period with respect to such
building, and
(B) to which the amendments made by section 201(a) of the Tax Reform Act
of 1986 apply.
(d) Eligible basis. For purposes of this section-(1) New buildings. The eligible basis of a new building is its adjusted basis as of
the close of the 1st taxable year of the credit period.
(2) Existing buildings.
(A) In general. The eligible basis of an existing building is-(i) in the case of a building which meets the requirements of
subparagraph (B), its adjusted basis as of the close of the 1st taxable
year of the credit period, and
(ii) zero in any other case.
(~) Requirements. A building meets the requirements of this subparagraph
if-(i) the building is acquired by purchase (as defined in section 179(d)(2)
[IRC Sec. 179(d)(2)]),
(ii) there is a period of at least 10 years between the date of its
acquisition by the taxpayer and the date the building was last placed in
service,
(iii) the building was not previously placed in service by the taxpayer or
by any person who was a related person with respect to the taxpayer as
of the time previously placed in service, and
(iv) except as provided in subsection (f)(5), a credit is allowable under
subsection (a) by reason of subsection (e) with respect to the building.
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(C) Adjusted basis. For purposes of subparagraph (A), the adjusted basis of
any building shall not include so much of the basis of such building as is
determined by reference to the basis of other property held at any time by
the person acquiring the building.
(D) Special rules for subparagraph (B).
(i) Special rules for certain transfers. For purposes of determining under
subparagraph (B)(ii) when a building was last placed in service, there
shall not be taken into account any placement in service-(Y) in connection with the acquisition of the building in a transaction
in which the basis of the building in the hands of the person acquiring
it is determined in whole or in part by reference to the adjusted basis
of such building in the hands of the person from whom acquired,
(%%) by a person whose basis in such building is determined under
section 1014(a)[IRC Sec. 1014(a)] (relating to property acquired
from a decedent),
(%II) by any governmental unit or qualified nonprofit organization (as
defined in subsection (h)(5)) if the requirements of subparagraph (B)
(ii) are met with respect to the placement in service by such unit or
organization and ail the income from such property is exempt from
Federal income taxation,
(%V) by any person who acquired such building by foreclosure (or by
instrument in lieu of foreclosure) of any purchase-money security
interest held by such person if the requirements of subparagraph (B)
(ii) are met with respect to the placement in service by such person
and such building is resold within 12 months after the date such
building is placed in service by such person after such foreclosure, or
(V) of asingle-family residence by any individual who owned and
used such residence for no other purpose than as his principal
residence.
(ii) Related person. For purposes of subparagraph (B)(iii), a person
(hereinafter in this subclause referred to as the "related person") is
related to any person if the related person bears a relationship to such
person specified in section 267(b) or 707(b)(1)[IRC Sec. 267(b) or 707
(b)(1)], or the related person and such person are engaged in trades or
businesses under common control (within the meaning of subsections (a)
and (b) of section SZ).
(3) Eligible basis reduced where disproportionate standards for units.
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(A) In general. Except as provided in subparagraph (B), the eligible basis of

any building shall be reduced by an amount equal to the portion of the
adjusted basis of the building which is attributable to residential rental units in
the building which are not low-income units and which are above the average
quality standard of the low-income units in the building.
(B) Exception where taxpayer elects to exclude excess costs.
(i) In general. Subparagraph (A) shall not apply with respect to a
residential rental unit in a building which is not a loes-income unit if-(I) the excess described in clause (ii) with respect to such unit is not
greater than 15 percent of the cost described in clause (ii)(II), and
(II) the taxpayer elects to exclude from the eligible basis of such
building the excess described in clause (ii) with respect to such unit.
(ii) Excess. The excess described in this clause with respect to any unit is
the excess of-(I) the cost of such unit, over
(YI) the amount which would be the cost of such unit if the average
cost per square foot of low-income units in the building were
substituted for the cost per square foot of such unit.The Secretary
may by regulation provide for the determination of the excess under
this clause on a basis other than square foot costs.
(4) Special rules relating to determination of adjusted basis. For purposes of this
subsection-(A) In general. Except as provided in subparagraphs (B) and (C), the
adjusted basis of any building shall be determined without regard to the
adjusted basis of any property which is not residential rental property.
(B) Basis of property in common areas, etc., included. The adjusted basis of
any building shall be determined by taking into account the adjusted basis of
property (of a character subject to the allowance for depreciation) used in
common areas or provided as comparable amenities to all residential rental
units in such building.
(C) Inclusion of basis of property used to provide services for certain
nontenants.
(i) In general. The adjusted basis of any building located in a qualified
census tract (as defined in paragraph (5)(C)) shall be determined by
taking into account the adjusted basis of property (of a character subject
to the allowance for depreciation and not otherwise taken into account)
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used throughout the taxable year in providing any community service

fa ci I ity.
(ii) Limitation. The increase in the adjusted basis of any building which is
taken into account by reason of clause (i) shall not exceed the sum of-(I) 25 percent of so much of the eligible basis of the qualified lowincome housing project of which it is a part as does not exceed $
15,000,000, plus
(II) 10 percent of so much of the eligible basis of such project as is
not taken into account under subciause (I).For purposes of the
preceding sentence, all community service facilities which are part of
the same qualified low-income housing project shall be treated as one
facility.
(iii) Community service facility. For purposes of this subparagraph, the
term "community service facility" means any facility designed to serve
primarily individuals whose income is 60 percent or less of area median
income (within the meaning of subsection (g)(1)(B)).
(D) No reduction for depreciation. The adjusted basis of any building shall be
determined without regard to paragraphs (2) and (3) of section 1016(a)(IRC
Sec. 1016(a)].
(5) Special rules for determining eligible basis.
(A) Federal grants not taken into account in determining eligible basis. The
eligible basis of a building shall not include any costs financed with the
proceeds of a federally funded grant.
(B) Increase in credit for buildings in high cost areas.
(i) In general. In the case of any building located in a qualified census
tract or difficult development area which is designated for purposes of this
subparagraph-(I) in the case of a new building, the eligible basis of such building
shall be 130 percent of such basis determined without regard to this
subparagraph, and
(II) in the case of an existing building, the rehabilitation expenditures
taken into account under subsection (e) shall be 130 percent of such
expenditures determined without regard to this subparagraph.
(ii) Qualified census tract.
(I) In general. The term "qualified census tract" means any census
tract which is designated by the Secretary of Housing and Urban
Development and, for the most recent year for which census data are
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available on household income in such tract, either in which 50

percent or more of the households have an income which is less than
60 percent of the area median gross income for such year or which
has a poverty rate of at least 25 percent. If the Secretary of Housing
and Urban Development determines that sufficient data for any period
are not available to apply this clause on the basis of census tracts,
such Secretary shall apply this clause for such period on the basis of
enumeration districts.
(YI) Limit on MSA's designated. The portion of a metropolitan
statistical area which may be designated for purposes of this
subparagraph shall not exceed an area having 20 percent of the
population of such metropolitan statistical area.
(%I%) Determination of areas. For purposes of this clause, each
metropolitan statistical area shall be treated as a separate area and
all nonmetropolitan areas in a State shall be treated as i area.
(iii) Difficult development areas.
(%) In general. The term "difficult development areas" means any
area designated by the Secretary of Housing and Urban Development
as an area which has high construction, land, and utility costs relative
to area median gross income
(%i) Limit on areas designated. The portions of metropolitan
statistical areas which may be designated for purposes of this
subparagraph shall not exceed an aggregate area having 20 percent
of the population of such metropolitan statistical areas. A comparable
rule shall apply to nonmetropolitan areas.
(iv) Special rules and definitions. For purposes of this subparagraph-(I) population shall be determined on the basis of the most recent
decennial census for which data are available,
(I%) area median gross income shall be determined in accordance
with subsection (g)(4),
(YYI) the term "metropolitan statistical area" has the same meaning
as when used in section 143(k)(2)(B)[IRC Sec. 143(k)(2)(B)], and
(IV) the term "nonmetropolitan area" means any county (or portion
thereof) which is not within a metropolitan statistical area.
(v) Buildings designated by State housing credit agency. Any building
which is designated by the State housing credit agency as requiring the
increase in credit under this subparagraph in order for such building to be
financially feasible as part of a qualified low-income housing project shall
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be treated for purposes of this subparagraph as located in a difficult

development area which is designated for purposes of this subparagraph.
The preceding sentence shall not apply to any building if paragraph (1) of
subsection (h) does not apply to any portion of the eligible basis of such
building by reason of paragraph (4) of such subsection.
(6) Credit allowable for certain buildings acquired during SO-year period
described in paragraph (2)(B)(ii).
(A) In general. Paragraph (2)(8)(ii) shall not apply to any federally- or Stateassisted building.
(B) Buildings acquired from insured depository institutions in default. On
application by the taxpayer, the Secretary may waive paragraph (2)(B)(ii)
with respect to any building acquired from an insured depository institution in
default (as defined in section 3 of the Federal Deposit Insurance Act [12 USCS
18130 or from a receiver or conservator of such an institution.
(C) Federally- or State-assisted building. For purposes of this paragraph-(i) Federally-assisted building. The term "federally-assisted building"
means any building which is substantially assisted, financed, or operated
under section 8 of the United States Housing Act of 1937 (42 USCS
1437f], section 22i(d)(3), 2Z1(d)(4), or 236 of the National Housing Act
[12 USCS 17151(d)(3), (4) or 1715z-1], section 515 of the Housing Act
of 1949 [42 USCS 1485], or any other housing program administered
by the Department of Housing and Urban Development or by the Rural
Housing Service of the Department of Agriculture.
(ii) State-assisted building. The term "State-assisted building" means any
building which is substantially assisted, financed, or operated under any
State law similar in purposes to any of the laws referred to in clause (i).
(7) Acquisition of building before end of prior compliance period.
(A) In general. Under regulations prescribed by the Secretary, in the case of
a building described in subparagraph (B)(or interest therein) which is
acquired by the taxpayer-(i) paragraph (2)(B) shall not apply, but
(ii) the credit allowable by reason of subsection (a) to the taxpayer for
any period after such acquisition shall be equal to the amount of credit
which would have been allowable under subsection (a) for such period to
the prior owner referred to in subparagraph (8) had such owner not
disposed of the building.
(B) Description of building. A building is described in this subparagraph if--
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(i) a credit was allowed by reason of subsection (a) to any prior owner of
such building, and
(ii) the taxpayer acquired such building before the end of the compliance
period for such building with respect to such prior owner (determined
without regard to any disposition by such prior owner).
(e) Rehabilitation expenditures treated as separate new building.
(1)In general. Rehabilitation expenditures paid or incurred by the taxpayer with
respect to any building shall be treated for purposes of this section as a separate
new building.
(2) Rehabilitation expenditures. For purposes of paragraph (1)-(A) In general. The term "rehabilitation expenditures" means amounts
chargeable to capital account and incurred for property (or additions or
improvements to property) of a character subject to the allowance for
depreciation in connection with the rehabilitation of a building.
(B) Cost of acquisition, etc, not included. Such term does not include the cost
of acquiring any building (or interest therein) or any amount not permitted to
be taken into account under paragraph (3) or (4) of subsection (d).
(3) Minimum expenditures to qualify.
(A) In general. Paragraph (1) shall apply to rehabilitation expenditures with
respect to any building only if-(i) the expenditures are allocable to 1 or more low-income units or
substantially benefit such units, and
(ii) the amount of such expenditures during any 24-month period meets
the requirements of whichever of the following subclauses requires the
greater amount of such expenditures:
(I) The requirement of this subclause is met if such amount is not
less than 20 percent of the adjusted basis of the building (determined
as of the ist day of such period and without regard to paragraphs (2)
and (3) of section 1016(a)[IRC Sec. 1016(a)]).
(II)[Caution: For calendar years beginning in 2015, see 3.08
of
Rev. Proc. 2014-61(26 USCS 1 noCe)for provision that the
per low-income unit qualified basis amount under this
subclause is $ 6,600.] The requirement of this subclause is met if
the qualified basis attributable to such amount, when divided by the
number of low-income units in the building, is $ 6,000 or more.
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(B) Exception from 10 percent rehabilitation. In the case of a building

acquired by the taxpayer from a governmental unit, at the election of the
taxpayer, subparagraph (A)(ii)(I) shall not apply and the credit under this
section for such rehabilitation expenditures shall be determined using the
percentage applicable under subsection (b)(2)(8)(ii).
(C) Date of determination. The determination under subparagraph (A) shall
be made as of the close of the 1st taxable year in the credit period with
respect to such expenditures
(D) Inflation adjustment. In the case of any expenditures which are treated
under paragraph (4j as placed in service during any calendar year after 2009,
the ~ 6,000 amount in subparagraph (A)(ii)(II) shall be increased by an
amount equal to-(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section 1(f)(3) for
such calendar year by substituting "calendar year 2008" for "calendar
year 1992" in subparagraph (B) thereof.Any increase under the preceding
sentence which is not a multiple of $ 100 shall be rounded to the nearest
multiple of $ 100.
(4) Special rules. For purposes of applying this section with respect to
expenditures which are treated as a separate building by reason of this
subsection-(A)such expenditures shall be treated as placed in service at the close of the
24-month period referred to in paragraph (3)(A), and
(B) the applicable fraction under subsection (c)(1) shall be the applicable
fraction for the building (without regard to paragraph (1)) with respect to
which the expenditures were incurred.Nothing in subsection (d)(2) shall
prevent a credit from being allowed by reason of this subsection.
(5) No double counting. Rehabilitation expenditures may, at the election of the
taxpayer, be taken into account under this subsection or subsection (d)(2)(A)(i)
but not under both such subsections
(6) Regulations to apply subsection with respect to group of units in building. The
Secretary may prescribe regulations, consistent with the purposes of this
subsection, treating a group of units with respect to which rehabilitation
expenditures are incurred as a separate new building.
(f) Definition and special rules relating to credit period.
(1) Credit period defined. For purposes of this section, the term "credit period"
means, with respect to any building, the period of 10 taxable years beginning
with--
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(A) the taxable year in which the building is placed in service, or

(B) at the election of the taxpayer, the succeeding taxable year,but only if
the building is a qualified low-income building as of the close of the 1st year
of such period. The election under subparagraph (B), once made, shall be
irrevocable.
(2) Special rule for 1st year of credit period.
(A) In general. The credit allowable under subsection (a) with respect to any
building for the 1st taxable year of the credit period shall be determined by
substituting for the applicable fraction under subsection (c)(i) the fraction-(i) the numerator of which is the sum of the applicable fractions
determined under subsection (c)(1) as of the close of each full month of
such year during which such building was in service, and
(ii) the denominator of which is 12.
(6) Disallowed 1st year credit allowed in 11th year. Any reduction by reason
of subparagraph (A) in the credit allowable (without regard to subparagraph
(A)) for the 1st taxable year of the credit period shall be allowable under
subsection (a) for tiie 1st taxable year following the credit period.
(3) Determination of applicable percentage with respect to increases in qualified
basis after 1st year of credit period.
(A) In general. In the case of any building which was a qualified low-income
building as of the close of the 1st year of the credit period, if-(i) as of the close of any taxable year in the compliance period (after the
1st year of the credit period) the qualified basis of such building exceeds
(ii) the qualified basis of such building as of the close of the 1st year of
the credit period,the applicable percentage which shall apply under
subsection (a) for the taxable year to such excess shall be the percentage
equal to 2/3 of the applicable percentage which (after the application of
subsection (h)) would but for this paragraph apply to such basis.
(B) 1st year computation applies. A rule similar to the rule of paragraph (2)
(A) shall apply to any increase in qualified basis to which subparagraph (A)
applies for the 1st year of such increase.
(4) Dispositions of property. If a building (or an interest therein) is disposed of
during any year for which credit is allowable under subsection (a), such credit
shall be allocated between the parties on the basis of the number of days during
such year the building (or interest) was held by each. In any such case, proper
adjustments shall be made in the application of subsection (j).
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(5) Credit period for existing buildings not to begin before rehabilitation credit
allowed.
(A) In general. The credit period for an existing building shall not begin
before the 1st taxable year of the credit period for rehabilitation expenditures
with respect to the building.
(B) Acquisition credit allowed for certain buildings not allowed a rehabilitation
credit.
(i) In general. In the case of a building described in clause (ii)-(%) subsection (d)(2)(B)(iv) shall not apply, and
(II) the credit period for such building shall not begin before the
taxable year which would be the ist taxable year of the credit period
for rehabilitation expenditures with respect to the building under the
modifications described in clause (ii)(II).
(ii) Building described. A building is described in this clause if-(%) a waiver is granted under subsection (d)(6)(C) with respect to the
acquisition of the building, and
(II) a credit would be allowed for rehabilitation expenditures with
respect to such building if subsection (e)(3)(A)(ii)(I) did not apply and
if the dollar amount in effect under subsection (e)(3)(A)(ii)(II) were
two-thirds of such amount.
(g) Qualified low-income housing project. For purposes of this section-(1) In general. The term "qualified low-income housing project" means any
project for residential rental property if the project meets the requirements of
subparagraph (A) or (B) whichever is elected by the taxpayer:
(A) 20-50 test. The project meets the requirements of this subparagraph if
20 percent or more of the residential units in such project are both rentrestricted and occupied by individuals whose income is 50 percent or less of
area median gross income.
(B) 40-60 test. The project meets the requirements of this subparagraph if
40 percent or more of the residential units in such project are both rentrestricted and occupied by individuals whose income is 60 percent or less of
area median gross income.Any election under this paragraph, once made,
shall be irrevocable. For purposes of this paragraph, any property shall not be
treated as failing to be residential rental property merely because part of the
building in which such property is located is used for purposes other than
residential rental purposes.
(2) Rent-restricted units.
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(A) In general. For purposes of paragraph (1), a residential unit is rentrestricted if the gross rent with respect to such unit does not exceed 30
percent of the imputed income limitation applicable to such unit. For purposes
of the preceding sentence, the amount of the income limitation under
paragraph (1) applicable for any period shall not be less than such limitation
applicable for the earliest period the building (which contains the unit) was
included in the determination of whether the project is a qualified low-income
housing project.
(B) Gross rent. For purposes of subparagraph (A), gross rent-(i) does not include any payment under section 8 of the United States
Housing Act of 1937 (42 USCS i437f] or any comparable rental
assistance program (with respect to such unit or occupants thereof),
(ii) includes any utility allowance determined by the Secretary after
taking into account such determinations under section 8 of the United
States Housing Act of 1937 [4Z USCS 1437f],
(iii) does not include any fee for a supportive service which is paid to the
owner of the unit (on the basis of the low-income status of the tenant of
the unit) by any governmental program of assistance (or by an
organization described in section 501(c)(3)[IRC Sec. 501(c)(3)~ and
exempt from tax under section 501(a)[IRC Sec. 501(a)]) if such program
(or organization) provides assistance for rent and the amount of
assistance provided for rent is not separable from the amount of
assistance provided for supportive services, and
(iv) does not include any rental payment to the owner of the unit to the
extent such owner pays an equivalent amount to the Farmers' Home
Administration under section 515 of the Housing Act of 1949 [42 USCS
1485J.For purposes of clause (iii), the term "supportive service" means
any service provided under a planned program of services designed to
enable residents of a residential rental property to remain independent
and avoid placement in a hospital, nursing home, or intermediate care
facility for the mentally or physically handicapped. In the case of a singleroom occupancy unit or a building described in subsection (i)(3)(B)(iii),
such term includes any service provided to assist tenants in locating and
retaining permanent housing.
(C) Imputed income limitation applicable to unit. For purposes of this
paragraph, the imputed income limitation applicable to a unit is the income
limitation which would apply under paragraph (1) to individuals occupying the
unit if the number of individuals occupying the unit were as follows:
(i) In the case of a unit which does not have a separate bedroom, 1
individual.
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(ii) In the case of a unit which has 1 or more separate bedrooms, 1.5
individuals for each separate bedroom.In the case of a project with
respect to which a credit is allowable by reason of this section and for
which financing is provided by a bond described in section 14Z(a)(7) [IRC
Sec. 142(a)(7)), the imputed income limitation shall apply in lieu of the
otherwise applicable income limitation for purposes of applying section
142(d)(4)(B)(ii) [IRC Sec. 142(d)(4)(B)(ii)].
(D)Treatment of units occupied by individuals whose incomes rise above
limit.
(i) In general. Except as provided in clause (ii), notwithstanding an
increase in the income of the occupants of a toes-income unit above the
income limitation applicable under paragraph (1), such unit shall continue
to be treated as aloes-income unit if the income of such occupants initially
met such income limitation and such unit continues to be rent-restricted.
(ii) Next available unit must be rented to low-income tenant if income
rises above 140 percent of income limit. If the income of the occupants of
the unit increases above 140 percent of the income limitation applicable
under paragraph (1), clause (i) shall cease to apply to such unit if any
residential rental unit in the building (of a size comparable to, or smaller
than, such unit) is occupied by a new resident whose income exceeds
such income limitation. In the case of a project described in section 142
(d)(4)(B)[IRC Sec. 142(d)(4)(B)], the preceding sentence shall be
applied by substituting "170 percent" for "140 percent" and by
substituting "any low-income unit in the building is occupied by a new
resident whose income exceeds 40 percent of area median gross income"
for "any residential unit in the building (of a size comparable to, or
smaller than, such unit) is occupied by a new resident whose income
exceeds such income limitation".
(E) Units where federal rental assistance is reduced as tenant's income
increases. If the gross rent with respect to a residential unit exceeds the
limitation under subparagraph (A) by reason of the fact that the income of the
occupants thereof exceeds the income limitation applicable under paragraph
(1), such unit shall, nevertheless, be treated as arent-restricted unit for
purposes of paragraph (1) if-(i) a Federal rental assistance payment described in subparagraph (B)(i)
is made with respect to such unit or its occupants, and
(ii) the sum of such payment and the gross rent with respect to such unit
does not exceed the sum of the amount of such payment which would be
made and the gross rent which would be payable with respect to such unit
if--
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(I) the income of the occupants thereof did not exceed the income
limitation applicable under paragraph (1), and
(II) such units were rent-restricted within the meaning of
subparagraph (A).The preceding sentence shall apply to any unit only
if the result described in clause (ii) is required by Federal statute as of
the date of the enactment of this subparagraph and as of the date the
Federal rental assistance payment is made.
(3) Date for meeting requirements.
(A) In general. Except as otherwise provided in this paragraph, a building
shall be treated as a qualified low-income building only if the project (of which
such building is a part) meets the requirements of paragraph (1) not later
than the close of the 1st year of the credit period for such building.
(6) Buildings which rely on later buildings for qualification.
(i) In general. In determining whether a building (hereinafter in this
subparagraph referred to as the "prior building") is a qualified low-income
building, the taxpayer may take into account 1 or more additional
buildings placed in service during the 12-month period described in
subparagraph (A) with respect to the prior building only if the taxpayer
elects to apply clause (ii) with respect to each additional building taken
into account.
(ii) Treatment of elected buildings. In the case of a building which the
taxpayer elects to take into account under clause (i), the period under
subparagraph (A) for such building shall end at the close of the 12-month
period applicable to the prior building.
(iii) Date prior building is treated as placed in service. For purposes of
determining the credit period and the compliance period for the prior
building, the prior building shall be treated for purposes of this section as
placed in service on the most recent date any additional building elected
by the taxpayer (with respect to such prior building) was placed in
service.
(C) Special rule. Abuilding-(i) other than the lst building placed in service as part of a project, and
(ii) other than a building which is placed in service during the 12-month
period described in subparagraph (A) with respect to a prior building
which becomes a qualified low-income building,shall in no event be
treated as a qualified low-income building unless the project is a qualified
low-income housing project (without regard to such building) on the date
such building is placed in service.
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(D) Projects with more than 1 building must be identified. For purposes of
this section, a project shall be treated as consisting of only 1 building unless,
before the close of the ist calendar year in the project period (as defined in
subsection (h)(1)(F)(ii)), each building which is (or will be) part of such
project is identified in such form and manner as the Secretary may provide.
(4) Certain rules made applicable. Paragraphs (2)(other than subparagraph (A)
thereof), (3),(4), (5),(6), and (7) of section 142(d)[IRC Sec. 142(d)], and
section 665Z(j)[IRC Sec. 6652(j)], shall apply for purposes of determining
whether any project is a qualified low-income housing project and whether any
unit is a loes-income unit; except that, in applying such provisions for such
purposes, the term "gross rent' shall have the meaning given such term by
paragraph (2)(B) of this subsection.
(5) Election to treat building after compliance period as not part of a project. For
purposes of this section, the taxpayer may elect to treat any building as not part
of a qualified low-income housing project for any period beginning after the
compliance period for such building.
(6) Special rule where de minimis equity contribution. Property shall not be
treated as failing to be residential rental property for purposes of this section
merely because the occupant of a residential unit in the project pays (on a
voluntary basis) to the lessor a de minimis amount to be held toward the
purchase by such occupant of a residential unit in such project if-(A) ail amounts so paid are refunded to the occupant on the cessation of his
occupancy of a unit in the project, and
(6) the purchase of the unit is not permitted until after the close of the
compliance period with respect to the building in which the unit is Iocated.Any
amount paid to the lessor as described in the preceding sentence shall be
included in gross rent under paragraph (2) for purposes of determining
whether the unit is rent-restricted.
(7) Scattered site projects. Buildings which would (but for their lack of proximity)
be treated as a project for purposes of this section shall be so treated if all of the
dwelling units in each of the buildings are rent-restricted (within the meaning of
paragraph (2)) residential rental units.
(8) Waiver of certain de minimis errors and recertifications. On application by the
taxpayer, the Secretary may waive-(A) any recapture under subsection (j) in the case of any de minimis error in
complying with paragraph (1), or
(B) any annual recertification of tenant income for purposes of this
subsection, if the entire building is occupied by low-income tenants.
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(9) Clarification of general public use requirement. A project does not fail to meet
the general public use requirement solely because of occupancy restrictions or
preferences that favor tenants-(A) with special needs,
(B) who are members of a specified group under a Federal program or State
program or policy that supports housing for such a specified group, or
(C) who are involved in artistic or literary activities.
(h) Limitation on aggregate credit allowable with respect to projects located in a
State.
(1) Credit may not exceed credit amount allocated to building
(A) In general. The amount of the credit determined under this section for
any taxable year with respect to any building shall not exceed the housing
credit dollar amount allocated to such building under this subsection.
(B)Time for making allocation. Except in the case of an allocation which
meets the requirements of subparagraph (C), (D), (E), or (F) an allocation
shall be taken into account under subparagraph (A) only if it is made not later
than the close of the calendar year in which the building is placed in service.
(C) Exception where binding commitment. An allocation meets the
requirements of this subparagraph if there is a binding commitment (not later
than the close of the calendar year in which the building is placed in service)
by the housing credit agency to allocate a specified housing credit dollar
amount to such building beginning in a specified later taxable year.
(D) Exception where increase in qualified basis.
(i) In general. An allocation meets the requirements of this subparagraph
if such allocation is made not later than the close of the calendar year in
which ends the taxable year to which it will 1st apply but only to the
extent the amount of such allocation does not exceed the limitation under
clause (ii).
(ii) Limitation. The limitation under this clause is the amount of credit
allowable under this section (without regard to this subsection) for a
taxable year with respect to an increase in the qualified basis of the
building equal to the excess of-(Y) the qualified basis of such building as of the close of the ist
taxable year to which such allocation will apply, over
(II) the qualified basis of such building as of the close of the lst
taxable year to which the most recent prior housing credit allocation
with respect to such building applied.
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(iii) Housing credit dollar amount reduced by full allocation.

Notwithstanding clause (i), the full amount of the allocation shall be taken
into account under paragraph (2).
(E) Exception where 10 percent of cost incurred.
(i) In general. An allocation meets the requirements of this subparagraph
if such allocation is made with respect to a qualified building which is
placed in service not later than the close of the second calendar year
following the calendar year in which the allocation is made.
(ii) Qualified building. For purposes of clause (i), the term "qualified
building" means any building which is part of a project if the taxpayer's
basis in such project (as of the date which is 1 year after the date that the
allocation was made) is more than 10 percent of the taxpayer's
reasonably expected basis in such project (as of the close of the second
calendar year referred to in clause (i)). Such term does not include any
existing building unless a credit is allowable under subsection (e) for
rehabilitation expenditures paid or incurred by the taxpayer with respect
to such building for a taxable year ending during the second calendar year
referred to in clause (i) or the prior taxable year.
(F) Allocation of credit on a project basis.
(i) In general. In the case of a project which includes (or will include)
more than 1 building, an allocation meets the requirements of this
subparagraph if-(%) the allocation is made to the project for a calendar year during the
project period,
(II) the allocation only applies to buildings placed in service during or
after the calendar year for which the allocation is made, and
(%II) the portion of such allocation which is allocated to any building
in such project is specified not later than the close of the calendar
year in which the building is placed in service.
(ii) Project period. For purposes of clause (i), the term "project period"
means the period-(I) beginning with the 1st calendar year for which an allocation may
be made for the 1st building placed in service as part of such project,
and
(II) ending with the calendar year the last building is placed in
service as part of such project.
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(2) Allocated credit amount to apply to ail taxable years ending during or after
credit allocation year. Any housing credit dollar amount allocated to any building
for any calendar year-(A)shall apply to such building for all taxable years in the compliance period
ending during or after such calendar year, and
(B) shall reduce the aggregate housing credit dollar amount of the allocating
agency only for such calendar year.
(3) Housing credit dollar amount for agencies.
(A) In general. The aggregate housing credit dollar amount which a housing
credit agency may allocate for any calendar year is the portion of the State
housing credit ceiling allocated under this paragraph for such calendar year to
such agency
(B) State ceiling initially allocated to State housing credit agencies. Except as
provided in subparagraphs (D) and (E), the State housing credit ceiling for
each calendar year shall be allocated to the housing credit agency of such
State. If there is more than 1 housing credit agency of a State, all such
agencies shall be treated as a single agency.
(C) State housing credit ceiling. The State housing credit ceiling applicable to
any State for any calendar year shall be an amount equal to the sum of-(i) the unused State housing credit ceiling (if any) of such State for the
preceding calendar year,
(ii) the greater of-(I) $ 1.75 multiplied by the State population, or
(II) 3 2,000,000,
(iii) the amount of State housing credit ceiling returned in the calendar
year, plus
(iv) the amount (if any) allocated under subparagraph (D) to such State
by the Secretary.For purposes of clause (i), the unused State housing
credit ceiling for any calendar year is the excess (if any) of the sum of the
amounts described in clauses (ii) through (iv) over the aggregate housing
credit dollar amount allocated for such year. For purposes of clause (iii),
the amount of State housing credit ceiling returned in the calendar year
equals the housing credit dollar amount previously allocated within the
State to any project which fails to meet the 10 percent test under
paragraph (1)(E)(ii) on a date after the close of the calendar year in
which the allocation was made or which does not become a qualified lowincome housing project within the period required by this section or the
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terms of the allocation or to any project with respect to which an

allocation is cancelled by mutual consent of the housing credit agency and
the allocation recipient.
(D) Unused housing credit carryovers allocated among certain States.
(i) In general. The unused housing credit carryover of a State for any
calendar year shall be assigned to the Secretary for allocation among
qualified States for the succeeding calendar year.
(ii) Unused housing credit carryover. For purposes of this subparagraph,
the unused housing credit carryover of a State for any calendar year is
the excess (if any) of the unused State housing credit ceiling for such year
(as defined in subparagraph (C)(i)) over the excess (if any) of-(Y) the unused State housing credit ceiling for the year preceding
such year, over
(II) the aggregate housing credit dollar amount allocated for such
year.
(iii) Formula for allocation of unused housing credit carryovers among
qualified States. The amount allocated under this subparagraph to a
qualified State for any calendar year shall be the amount determined by
the Secretary to bear the same ratio to the aggregate unused housing
credit carryovers of all States for the preceding calendar year as such
State's population for the calendar year bears to the population of all
qualified States for the calendar year. For purposes of the preceding
sentence, population shall be determined in accordance with section 146
(j)[IRC Sec. i46(j)].
(iv) Qualified State. For purposes of this subparagraph, the term
"qualified State" means, with respect to a calendar year, any State-(I) which allocated its entire State housing credit ceiling for the
preceding calendar year, and
(%I) for which a request is made (not later than May 1 of the calendar
year) to receive an allocation under clause (iii).
(E) Special rule for states with constitutional home rule cities. For purposes of
this subsection-(i) In general. The aggregate housing credit dollar amount for any
constitutional home rule city for any calendar year shall be an amount
which bears the same ratio to the State housing credit ceiling for such
calendar year as-(I) the population of such city, bears to
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(II) the population of the entire State.

(ii) Coordination with other allocations. In the case of any State which
contains 1 or more constitutional home rule cities, for purposes of
applying this paragraph with respect to housing credit agencies in such
State other than constitutional home rule cities, the State housing credit
ceiling for any calendar year shall be reduced by the aggregate housing
credit dollar amounts determined for such year for all constitutional home
rule cities in such State.
(iii) Constitutional home rule city. For purposes of this paragraph, the
term "constitutional home rule city" has the meaning given such term by
section 146(d)(3)(C)[IRC Sec. 146(d)(3)(C)].
(F) State may provide for different allocation. Rules similar to the rules of
section 146(e)[IRC Sec. i46(e)] (other than paragraph (2)(B) thereof) shall
apply for purposes of this paragraph.
(G) Population. For purposes of this paragraph, population shall be
determined in accordance with section 146(j)[IRC Sec. 146(j)].
(H) Cost-of-living adjustment.
(i) In general. In the case of a calendar year after 2002, they 2,000,000
and $ 1.75 amounts in subparagraph (C) shall each be increased by an
amount equal to-(%) such dollar amount, multiplied by
(%I) the cost-of-living adjustment determined under section 1(f)(3)
[IRC Sec. 1(f)(3)] for such calendar year by substituting "calendar
year 2001" for "calendar year 1992" in subparagraph (B) thereof.
(ii) Rounding.
(I) In the case of the $ 2,000,000 amount, any increase under clause
(i) which is not a multiple of $ 5,000 shall be rounded to the next
lowest multiple of $ 5,000.
(YI) In the case of the $ 1.75 amount, any increase under clause (i)
which is not a multiple of 5 cents shall be rounded to the next lowest
multiple of 5 cents.
(%) Increase in state housing credit ceiling for 2008 and 2009. In
the case of calendar years 2008 and 2009-(i) the dollar amount in effect under subparagraph (C)(ii)(I)
for such calendar year (after any increase under subparagraph
(H)) shall be increased by $ 0.20, and
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(ii) the dollar amount in effect under subparagraph (C)(ii)(II)

for such calendar year (after any increase under subparagraph
(H)) shall be increased by an amount equal to SO percent of
such dollar amount (rounded to the next lowest multiple of $
5,000).
(4) Credit for buildings financed by tax-exempt bonds subject to volume cap not
taken into account.
(A) In general. Paragraph (1) shall not apply to the portion of any credit
allowable under subsection (a) which is attributable to eligible basis financed
by any obligation the interest on which is exempt from tax under section 103
[IRC Sec. 103] if -(i) such obligation is taken into account under section 146 [IRC Sec.
146], and
(ii) principal payments on such financing are applied within a reasonable
period to redeem obligations the proceeds of which were used to provide
such financing or such financing is refunded as described in section 146(i)
(6)[IRC Sec. 146(i)(G)].
(B) Special rule where 50 percent or more of building is financed with taxexempt bonds subject to volume cap. For purposes of subparagraph (A), if 50
percent or more of the aggregate basis of any building and the land on which
the building is located is financed by any obligation described in subparagraph
(A), paragraph (1) shall not apply to any portion of the credit allowable under
subsection (a) with respect to such building.
(5) Portion of state ceiling set-aside for certain projects involving qualified
nonprofit organizations.
(A) In general. Not more than 90 percent of the State housing credit ceiling
for any State for any calendar year shall be allocated to projects other than
qualified low-income housing projects described in subparagraph (B).
(B) Projects involving qualified nonprofit organizations. For purposes of
subparagraph (A), a qualified low-income housing project is described in this
subparagraph if a qualified nonprofit organization is to own an interest in the
project (directly or through a partnership) and materially participate (within
the meaning of section 469(h) [IRC Sec. 469(h)]) in the development and
operation of the project throughout the compliance period.
(C) Qualified nonprofit organization. For purposes of this paragraph, the term
"qualified nonprofit organization" means any organization if--
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(i) such organization is described in paragraph (3) or (4) of section 501

(c)[IRC Sec. 501(c)] and is exempt from tax under section 501(a)[IRC
Sec. 501(a)],
(ii) such organization is determined by the State housing credit agency
not to be affiliated with or controlled by afor-profit organization; and
(iii) 1 of the exempt purposes of such organization includes the fostering
of low-income housing.
(D)Treatment of certain subsidiaries.
(i) In general. For purposes of this paragraph, a qualified nonprofit
organization shall be treated as satisfying the ownership and material
participation test of subparagraph (B) if any qualified corporation in which
such organization holds stock satisfies such test.
(ii) Qualified corporation. For purposes of clause (i), the term "qualified
corporation" means any corporation if 100 percent of the stock of such
corporation is held by 1 or more qualified nonprofit organizations at all
times during the period such corporation is in existence.
(E) State may not override set-aside. Nothing in subparagraph (F) of
paragraph (3) shall be construed to permit a State not to comply with
subparagraph (A) of this paragraph.
(6) Buildings eligible for credit only if minimum long-term commitment to lowincome housing.
(A) In general. No credit shall be allowed by reason of this section with
respect to any building for the taxable year unless an extended low-income
housing commitment is in effect as of the end of such taxable year.
(B) Extended low-income housing commitment. For purposes of this
paragraph, the term "extended low-income housing commitment' means any
agreement between the taxpayer and the housing credit agency-(i) which requires that the applicable fraction (as defined in subsection (c)
(i)) for the building for each taxable year in the extended use period will
not be less than the applicable fraction specified in such agreement and
which prohibits the actions described in subclauses (I) and (II) of
subparagraph (E)(ii),
(ii) which allows individuals who meet the income limitation applicable to
the building under subsection (g)(whether prospective, present, or
former occupants of the building) the right Yo enforce in any State court
the requirement and prohibitions of clause (i),
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(iii) which prohibits the disposition to any person of any portion of the
building to which such agreement applies unless ail of the building to
which such agreement applies is disposed of to such person,
(iv) which prohibits the refusal to lease to a holder of a voucher or
certificate of eligibility under section 8 of the United States Housing Act of
1937 [42 USCS 1437f] because of the status of the prospective tenant
as such a holder,
(v) which is binding on all successors of the taxpayer, and
(vi) which, with respect to the property, is recorded pursuant to State law
as a restrictive covenant.
(C) Allocation of credit may not exceed amount necessary to support
commitment.
(i) In general. The housing credit dollar amount allocated to any building
may not exceed the amount necessary to support the applicable fraction
specified in the extended low-income housing commitment for such
building, including any increase in such fraction pursuant to the
application of subsection (f)(3) if such increase is reflected in an amended
low-income housing commitment.
(ii) Buildings financed by tax-exempt bonds. If paragraph (4) applies to
any building the amount of credit allowed in any taxable year may not
exceed the amount necessary to support the applicable fraction specified
in the extended low-income housing commitment for such building. Such
commitment may be amended to increase such fraction.
(D) Extended use period. For purposes of this paragraph, the term "extended
use period" means the period-(i) beginning on the 1st day in the compliance period on which such
building is part of a qualified low-income housing project, and
(ii) ending on the later of-(Y) the date specified by such agency in such agreement, or
(IY) the date which is 15 years after the close of the compliance
period.
(E) Exceptions if foreclosure or if no buyer willing to maintain low-income
status.
(i) In general. The extended use period for any building shall terminate-(I) on the date the building is acquired by foreclosure (or instrument
in lieu of foreclosure) unless the Secretary determines that such
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acquisition is part of an arrangement with the taxpayer a purpose of

which is to terminate such period, or
(II) on the last day of the period specified in subparagraph (I) if the
housing credit agency is unable to present during such period a
qualified contract for the acquisition of the low-income portion of the
building by any person who will continue to operate such portion as a
qualified low-income building.Subclause (II) shall not apply to the
extent more stringent requirements are provided in the agreement or
in State law.
(ii) Eviction, etc. of existing low-income tenants not permitted. The
termination of an extended use period under clause (i) shall not be
construed to permit before the close of the 3-year period following such
termination-(S) the eviction or the termination of tenancy (other than for good
cause) of an existing tenant of any low-income unit, or
(%I) any increase in the gross rent with respect to such unit not
otherwise permitted under this section.
(F) Qualified contract. For purposes of subparagraph (E), the term "qualified
contract" means a bona fide contract to acquire (within a reasonable period
after the contract is entered into) the non low-income portion of the building
for fair market value and the low-income portion of the building for an
amount not less than the applicable fraction (specified in the extended lowincome housing commitment) of-(i) the sum of-(%) the outstanding indebtedness secured by, or with respect to, the
building,
(II) the adjusted investor equity in the building, plus
(IYI) other capital contributions not reflected in the amounts
described in subclause (I) or (II), reduced by
(ii) cash distributions from (or available for distribution from) the
project.The Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out this paragraph, including regulations
to prevent the manipulation of the amount determined under the
preceding sentence.
(G) Adjusted investor equity.
(i) In general. For purposes of subparagraph (E), the term "adjusted
investor equity" means, with respect to any calendar year, the aggregate
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amount of cash taxpayers invested with respect to the project increased

by the amount equal to-(I) such amount, multiplied by
(YY) the cost-of-living adjustment for such calendar year, determined
under section 1(f)(3) [IRC Sec. 1(f)(3)] by substituting the base
calendar year for "calendar year 1987".An amount shall be taken into
account as an investment in the project only to the extent there was
an obligation to invest such amount as of the beginning of the credit
period and to the extent such amount is reflected in the adjusted
basis of the project.
(ii) Cost-of-living increases in excess of 5 percent not taken into account.
Under regulations prescribed by the Secretary, if the CPI for any calendar
year (as defined in section 1(f)(4) [IRC Sec. 1(f)(4)~) exceeds the CPI for
the preceding calendar year by more than 5 percent, the CPI for the base
calendar year shall be increased such that such excess shall never be
taken into account under clause (i).
(iii) Base calendar year. For purposes of this subparagraph, the term
"base calendar year" means the calendar year with or within which the 1st
taxable year of the credit period ends.
(H) Low-income portion. For purposes of this paragraph, the low-income
portion of a building is the portion of such building equal to the applicable
fraction specified in the extended low-income housing commitment for the
building.
(I) Period for finding buyer. The period referred to in this subparagraph is the
1-year period beginning on the date (after the 14th year of the compliance
period) the taxpayer submits a written request to the housing credit agency
to find a person to acquire the taxpayer's interest in the low-income portion of
the building.
(7) Effect of noncompliance. If, during a taxable year, there is a
determination that an extended low-income housing agreement was not in
effect as of the beginning of such year, such determination shall not apply to
any period before such year and subparagraph (A) shall be applied without
regard to such determination if the failure is corrected within 1 year from the
date of the determination.
(K) Projects which consist of more than 1 building. The application of this
paragraph to projects which consist of more than 1 building shall be made
under regulations prescribed by the Secretary.
(7) Special rules.
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(A) Building must be located within jurisdiction of credit agency. A housing

credit agency may allocate its aggregate housing credit dollar amount only to
buildings located in the jurisdiction of the governmental unit of which such
agency is a part.
(B) Agency allocations in excess of limit. If the aggregate housing credit
dollar amounts allocated by a housing credit agency for any calendar year
exceed the portion of the State housing credit ceiling allocated to such agency
for such calendar year, the housing credit dollar amounts so allocated shall be
reduced (to the extent of such excess) for buildings in the reverse of the
order in which the allocations of such amounts were made.
(C) Credit reduced if allocated credit dollar amount is less than credit which
would be allowable without regard to placed in service convention, etc.
(i) In general. The amount of the credit determined under this section
with respect to any building shall not exceed the clause (ii) percentage of
the amount of the credit which would (but for this subparagraph) be
determined under this section with respect to such building.
(ii) Determination of percentage. For purposes of clause (i), the clause
(ii) percentage with respect to any building is the percentage which-(I) the housing credit dollar amount allocated to such building bears
to
(II) the credit amount determined in accordance with clause (iii).
(iii) Determination of credit amount. The credit amount determined in
accordance with this clause is the amount of the credit which would (but
for this subparagraph) be determined under this section with respect to
the building if-(%) this section were applied without regard to paragraphs (2)(A) and
(3)(e) of subsection (f), and
(II) subsection (f)(3)(A) were applied without regard to "the
percentage equal to 2/3 of".
(D) Housing credit agency to specify applicable percentage and maximum
qualified basis. In allocating a housing credit dollar amount to any building,
the housing credit agency shall specify the applicable percentage and the
maximum qualified basis which may be taken into account under this section
with respect to such building. The applicable percentage and maximum
qualified basis so specified shall not exceed the applicable percentage and
qualified basis determined under this section without regard to this
subsection.
(8) Other definitions. For purposes of this subsection--
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(A) Housing credit agency. The term "housing credit agency" means any
agency authorized to carry out this subsection.
(B) Possessions treated as states. The term "State" includes a possession of
the United States.
(i) Definitions and special rules. For purposes of this section-(1) Compliance period. The term "compliance period" means, with
respect to any building, the period of 15 taxable years beginning with
the 1st taxable year of the credit period with respect thereto.
(2) Determination of whether building is federally subsidized.
(A) In general. Except as otherwise provided in this paragraph,
for purposes of subsection (b)(i), a new building shall be treated
as federally subsidized for any taxable year if, at any time during
such taxable year or any prior taxable year, there is or was
outstanding any obligation the interest on which is exempt from
tax under section 103 [IRC Sec. 103] the proceeds of which are or
were used (directly or indirectly) with respect to such building or
the operation thereof.
(B) Election to reduce eligible basis by proceeds of obligations. A
tax-exempt obligation shall not be taken into account under
subparagraph (A) if the taxpayer elects to exclude from the
eligible basis of the building for purposes of subsection (d) the
proceeds of such obligation.
(C) Special rule for subsidized construction financing.
Subparagraph (A) shall not apply to any tax-exempt obligation
used to provide construction financing for any building if-(i) such obligation (when issued) identified the building for which the
proceeds of such obligation would be used, and
(ii) such obligation is redeemed before such building is placed in service.
(3) Low-income unit.
(A)In general. The term "low-income unit" means any unit in a
building if-(i) such unit is rent-restricted (as defined in subsection (g)
(2)), and
(ii) the individuals occupying such unit meet the income
limitation applicable under subsection (g)(1) to the project of
which such building is a part.
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(B) Exceptions.
(i) In general. A unit shall not be treated as a toes-income unit
unless the unit is suitable for occupancy and used other than
on a transient basis.
(ii) Suitability for occupancy. For purposes of clause (i), the
suitability of a unit for occupancy shall be determined under
regulations prescribed by the Secretary taking into account
local health, safety, and building codes.
(iii) Transitional housing for homeless. For purposes of clause
(i), a unit shall be considered to be used other than on a
transient basis if the unit contains sleeping accommodations
and kitchen and bathroom facilities and is located in a
building
(%) which is used exclusively to facilitate the transition of
homeless individuals (within the meaning of section 103 of
the Stewart B. McKinney Homeless Assistance Act
[McKinney-Vento Homeless Assistance Actj (42 U.S.C.
11302), as in effect on the date of the enactment of this
clause [enacted Nov. 5, 1990]) to independent living
within 24 months, and
(II) in which a governmental entity or qualified nonprofit
organization (as defined in subsection (h)(5)) provides
such individuals with temporary housing and supportive
services designed to assist such individuals in locating and
retaining permanent housing.
(iv) Single-room occupancy units. For purposes of clause (i),
a single-room occupancy unit shall not be treated as used on
a transient basis merely because it is rented on a month-bymonth basis.
(C) Special rule for buildings having 4 or fewer units. In the case
of any building which has 4 or fewer residential rental units, no
unit in such building shall be treated as aloes-income unit if the
units in such building are owned by-(i) any individual who occupies a residential unit in such
building, or
(ii) any person who is related (as defined in subsection (d)(2)
(D)(iii)) to such individual.
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(D) Certain students not to disqualify unit. A unit shall not fail to
be treated as a loes-income unit merely because it is occupied-(i) by an individual who is-(Y) a student and receiving assistance under title IV of the
Social Security Act [42 USCS 601 et seq.],
(II) a student who was previously under the care and
placement responsibility of the State agency responsible
for administering a plan under part B or part E of title IV
of the Social Security Act [42 USCS 620 et seq. or ~~
670 et seq.], or
(%I%) enrolled in a job training program receiving
assistance under the Job Training Partnership Act or under
other similar Federal, State, or local laws, or
(ii} entirely by full-time students if such students are-(I) single parents and their children and such parents are
not dependents (as defined in section 152 [IRC Sec. i52],
determined without regard to subsections (b)(1), (b)(Z),
and (d)(1)(8) thereof) of another individual and such
children are not dependents (as so defined) of another
individual other than a parent of such children, or.
(%%) married and file a joint return.
(E) Owner-occupied buildings having 4 or fewer units eligible for
credit where development plan.
(i) In general. Subparagraph (C) shall not apply to the
acquisition or rehabilitation of a building pursuant to a
development plan of action sponsored by a State or local
government or a qualified nonprofit organization (as defined
in subsection (h)(5)(C)).
(ii) Limitation on credit. In the case of a building to which
clause (i) applies, the applicable fraction shall not exceed 80
percent of the unit fraction.
(iii) Certain unrented units treated as owner-occupied. In the
case of a building to which clause (i) applies, any unit which is
not rented for 90 days or more shall be treated as occupied by
the owner of the building as of the 1st day it is not rented.
(4) New building. The term "new building" means a building the
original use of which begins with the taxpayer.
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(5) Existing building. The term "existing building" means any building
which is not a new building.
(6) Application to estates and trusts. In the case of an estate or trust,
the amount of the credit determined under subsection (a) and any
increase in tax under subsection (j) shall be apportioned between the
estate or trust and the beneficiaries on the basis of the income of the
estate or trust allocable to each.
(7) Impact of tenants right of 1st refusal to acquire property.
(A)In general. No Federal income tax benefit shall fail to be
allowable to the taxpayer with respect to any qualified low-income
building merely by reason of a right of ist refusal held by the
tenants (in cooperative form or otherwise) or resident
management corporation of such building or by a qualified
nonprofit organization (as defined in subsection (h)(5)(C)) or
government agency to purchase the property after the close of
the compliance period for a price which is not less than the
minimum purchase price determined under subparagraph (B).
(B) Minimum purchase price. For purposes of subparagraph (A),
the minimum purchase price under this subparagraph is an
amount equal to the sum of-(i) the principal amount of outstanding indebtedness secured
by the building (other than indebtedness incurred within the
5-year period ending on the date of the sale to the tenants),
and
(ii) all Federal, State, and local taxes attributable to such
sale.Except in the case of Federal income taxes, there shall
not be taken into account under clause (ii) any additional tax
attributable to the application of clause (ii).
(8) Treatment of rural projects. For purposes of this section, in the
case of any project for residential rental property located in a rural
area (as defined in section 520 of the Housing Act of 1949 [42 USCS ~
1490]), any income limitation measured by reference to area median
gross income shall be measured by reference to the greater of area
median gross income or national non-metropolitan median income.
The preceding sentence shall not apply with respect to any building if
paragraph (1) of section 42(h)[IRC Sec. 42(h)] does not apply by
reason of paragraph (4) thereof to any portion of the credit
determined under this section with respect to such building.
(9) Coordination with low-income housing grants.
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(A) Reduction in State housing credit ceiling for low-income

housing grants received in 2009. For purposes of this section, the
amounts described in clauses (i) through (iv) of subsection (h)(3)
(C) with respect to any State for 2009 shall each be reduced by so
much of such amount as is taken into account in determining the
amount of any grant to such State under section 1602 of the
American Recovery and Reinvestment Tax Act of 2009 [note to
this section].
(B) Special rule for basis. Basis of a qualified low-income building
shall not be reduced by the amount of any grant described in
subparagraph (A).
(j) Recapture of credit.
(1) In general. If-(A) as of the close of any taxable year in the compliance period, the amount
of the qualified basis of any building with respect to the taxpayer is less than
(B) the amount of such basis as of the close of the preceding taxable year,
then the taxpayer's tax under this chapter [IRC Sections 1 et seq.] for the
taxable year shall be increased by the credit recapture amount.
(2) Credit recapture amount. For purposes of paragraph (1), the credit recapture
amount is an amount equal to the sum of-(A) the aggregate decrease in the credits allowed to the taxpayer under
section 38 [IRC Sec. 38] for all prior taxable years which would have resulted
if the accelerated portion of the credit allowable by reason of this section were
not allowed for all prior taxable years with respect to The excess of the
amount described in paragraph (1)(B) over the amount described in
paragraph (1)(A), plus
(~) interest at the overpayment rate established under section 6621 [IRC
Sec. 6621] on the amount determined under subparagraph (A) for each prior
taxable year for the period beginning on the due date for filing the return for
the prior taxable year involved.No deduction shall be allowed under this
chapter [IRC Sections 1 et seq. for interest described in subparagraph (B).
(3) Accelerated portion of credit. For purposes of paragraph (2), the accelerated
portion of the credit for the prior taxable years with respect to any amount of
basis is the excess of-(A) the aggregate credit allowed by reason of this section (without regard to
this subsection) for such years with respect to such basis, over
(~)the aggregate credit which would be allowable by reason of this section
for such years with respect to such basis if the aggregate credit which would
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(but for this subsection) have been allowable for the entire compliance period
were allowable ratably over 15 years.
(4) Special rules.
(A)Tax benefit rule. The tax for the taxable year shall be increased under
paragraph (1) only with respect to credits allowed by reason of this section
which were used to reduce tax liability. In the case of credits not so used to
reduce tax liability, the carryforwards and carrybacks under section 39 [IRC
Sec. 39J shall be appropriately adjusted.
(B) Only basis for which credit allowed taken into account. Qualified basis
shall be taken into account under paragraph (1)(B) only to the extent such
basis was taken into account in determining the credit under subsection (a)
for the preceding taxable year referred to in such paragraph.
(C) No recapture of additional credit allowable by reason of subsection (f)(3).
Paragraph (1) shall apply to a decrease in qualified basis only to the extent
such decrease exceeds the amount of qualified basis with respect to which a
credit was allowable for the taxable year referred to in paragraph (1)(B) by
reason of subsection (f)(3).
(D) No credits against tax. Any increase in tax under this subsection shall not
be treated as a tax imposed by this chapter [IRC Sections 1 et seq.] for
purposes of determining the amount of any credit under this chapter [IRC
Sections 1 et seq.].
(E) No recapture by reason of casualty loss. The increase in tax under this
subsection shall not apply to a reduction in qualified basis by reason of a
casualty loss to the extent such loss is restored by reconstruction or
replacement within a reasonable period established by the Secretary.
(F) No recapture where de minimis changes in floor space. The Secretary
may provide that the increase in tax under this subsection shall not apply with
respect to any building if-(i) such increase results from a de minimis change in the floor space
fraction under subsection (c)(1), and
(ii) the building is a qualified low-income building after such change.
(5) Certain partnerships treated as the taxpayer.
(A) In general. For purposes of applying this subsection to a partnership to
which this paragraph applies-(i) such partnership shall be treated as the taxpayer to which the credit
allowable under subsection (a) was allowed,
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(ii) the amount of such credit allowed shall be treated as the amount
which would have been allowed to the partnership were such credit
allowable to such partnership,
(iii) paragraph (4)(A) shall not apply, and
(iv) the amount of the increase in tax under this subsection for any
taxable year shall be allocated among the partners of such partnership in
the same manner as such partnership's taxable income for such year is
allocated among such partners.
(B) Partnerships to which paragraph applies. This paragraph shall apply to
any partnership which has 35 or more partners unless the partnership elects
not to have this paragraph apply.
(C) Special rules.
(i) Husband and wife treated as 1 partner. For purposes of subparagraph
(8)(i), a husband and wife (and their estates) shall be treated as i
partner.
(ii) Election irrevocable. Any election under subparagraph (8), once
made, shall be irrevocable.
(6) No recapture on disposition of building which continues in qualified use.
(A)In general. The increase in tax under this subsection shall not apply
solely by reason of the disposition of a building (or an interest therein) if it is
reasonably expected that such building will continue to be operated as a
qualified low-income building for the remaining compliance period with
respect to such building.
(B) Statute of limitations. If a building (or an interest therein) is disposed of
during any taxable year and there is any reduction in the qualified basis of
such building which results in an increase in tax under this subsection for such
taxable or any subsequent taxable year, then-(i) the statutory period for the assessment of any deficiency with respect
to such increase in tax shall not expire before the expiration of 3 years
from the date the Secretary is notified by the taxpayer (in such manner
as the Secretary may prescribe) of such reduction in qualified basis, and
(ii) such deficiency may be assessed before the expiration of such 3-year
period notwithstanding the provisions of any other law or rule of law
which would otherwise prevent such assessment.
(k) Application of at-risk rules. For purposes of this section-(1)In general. Except as otherwise provided in this subsection, rules similar to
the rules of section 49(a)(i)[IRC Sec. 49)a)(1)](other than subparagraphs (D)
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(ii)(II) and (D)(iv)(I) thereof), section 49(a)(2)[IRC Sec. 49(a)(2)], and section
49(b)(1)[IRC Sec. 49(b)(1)] shall apply in determining the qualified basis of any
building in the same manner as such sections apply in determining the credit base
of property.
(2) Special rules for determining qualified person. For purposes of paragraph (1)
(A) In general. If the requirements of subparagraphs (B), (C), and (D) are
met with respect to any financing borrowed from a qualified nonprofit
organization (as defined in subsection (h)(5)), the determination of whether
such financing is qualified commercial financing with respect to any qualified
low-income building shall be made without regard to whether such
organization-(i) is actively and regularly engaged in the business of lending money, or
(ii) is a person described in section 49(a)(1)(D)(iv)(II) [IRC Sec. 49(a)(1)
(D)(iv)(II)].
(B) Financing secured by property. The requirements of this subparagraph
are met with respect to any financing if such financing is secured by the
qualified low-income building, except that this subparagraph shall not apply in
the case of a federally assisted building described in subsection (d)(6)(B) if-(i) a security interest in such building is not permitted by a Federal
agency holding or insuring the mortgage secured by such building, and
(ii) the proceeds from the financing (if any) are applied to acquire or
improve such building.
(C) Portion of building attributable to financing. The requirements of this
subparagraph are met with respect to any financing for any taxable year in
the compliance period if, as of the close of such taxable year, not more than
60 percent of the eligible basis of the qualified low-income building is
attributable to such financing (reduced by the principal and interest of any
governmental financing which is part of awrap-around mortgage involving
such financing).
(D) Repayment of principal and interest. The requirements of this
subparagraph are met with respect to any financing if such financing is fully
repaid on or before the earliest of-(i) the date on which such financing matures,
(ii) the 90th day after the close of the compliance period with respect to
the qualified low-income building, or
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(iii) the date of its refinancing or the sale of the building to which such
financing relates.In the case of a qualified nonprofit organization which is
not described in section 49(a)(1)(D)(iv)(II) [IRC Sec. 49(a)(1)(D)(iv)(II)]
with respect to a building, clause (ii) of this subparagraph shall be applied
as if the date described therein were the 90th day after the earlier of the
date the building ceases to be a qualified low-income building or the date
which is 15 years after the close of a compliance period with respect
thereto.
(3) Present value of financing. If the rate of interest on any financing described in
paragraph (2)(A) is less than the rate which is 1 percentage point below the
applicable Federal rate as of the time such financing is incurred, then the qualified
basis (to which such financing relates) of the qualified Iow-income building shall
be the present value of the amount of such financing, using as the discount rate
such applicable Federal rate. For purposes of the preceding sentence, the rate of
interest on any financing shall be determined by treating interest to the extent of
government subsidies as not payable.
(4) Failure to fully repay.
(A) In general. To the extent that the requirements of paragraph (2)(D) are
not met, then the taxpayer's tax under this chapter [IRC Sections 1 et seq.
for the taxable year in which such failure occurs shall be increased by an
amount equal to the applicable portion of the credit under this section with
respect to such building, increased by an amount of interest for the period-(i) beginning with the due date for the filing of the return of tax imposed
by chapter 1 [IRC Sections 1 et seq.] for the 1st taxable year for which
such credit was allowable, and
(ii) ending with the due date for the taxable year in which such failure
occurs,determined by using the underpayment rate and method under
section 6621 [IRC Sec. 6621].
(B) Applicable portion. For purposes of subparagraph (A), the term
"applicable portion" means the aggregate decrease in the credits allowed to a
taxpayer under section 38 [IRC Sec. 38] for all prior taxable years which
would have resulted if the eligible basis of the building were reduced by the
amount of financing which does not meet requirements of paragraph (2)(D).
(C) Certain rules to apply. Rules similar to the rules of subparagraphs (A) and
(D) of subsection (j)(4) shall apply for purposes of this subsection.
(I) Certifications and other reports to Secretary.
(1) Certification with respect to 1st year of credit period. Following the close of
the 1st taxable year in the credit period with respect to any qualified low-income
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building, the taxpayer shall certify to the Secretary (at such time and in such form
and in such manner as the Secretary prescribes)-(A) the taxable year, and calendar year, in which such building was placed in
service,
(B)the adjusted basis and eligible basis of such building as of the close of the
1st year of the credit period,
(C) the maximum applicable percentage and qualified basis permitted to be
taken into account by the appropriate housing credit agency under subsection
(h),
(D)the election made under subsection (g) with respect to the qualified lowincome housing project of which such building is a part, and
(E) such other information as the Secretary may require.In the case of a
failure to make the certification required by the preceding sentence on the
date prescribed therefor, unless it is shown that such failure is due to
reasonable cause and not to willful neglect, no credit shall be allowable by
reason of subsection (a) with respect to such building for any taxable year
ending before such certification is made.
(2) Annual reports to the Secretary. The Secretary may require taxpayers to
submit an information return (at such time and in such form and manner as the
Secretary prescribes) for each taxable year setting forth-(A) the qualified basis for the taxable year of each qualified low-income
building of the taxpayer,
(B) the information described in paragraph (1)(C) for the taxable year, and
(C)such other information as the Secretary may require.The penalty under
section 6652(j)[IRC Sec. 6652(j)~ shall apply to any failure to submit the
return required by the Secretary under the preceding sentence on the date
prescribed therefor.
(3) Annual reports from housing credit agencies. Each agency which allocates any
housing credit amount to any building for any calendar year shall submit to the
Secretary (at such time and in such manner as the Secretary shall prescribe) an
annual report specifying-(A) the amount of housing credit amount allocated to each building for such
year,
(B) sufficient information to identify each such building and the taxpayer with
respect thereto, and
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(C)such other information as the Secretary may require.The penalty under

section 6652(j)[IRC Sec. 6652(j)] shall apply to any failure to submit the
report required by the preceding sentence on the date prescribed therefor.
(m) Responsibilities of housing credit agencies.
(1) Plans for allocation of credit among projects.
(A) In general. Notwithstanding any other provision of this section, the
housing credit dollar amount with respect to any building shall be zero
unless-(i) such amount was allocated pursuant to a qualified allocation plan of
the housing credit agency which is approved by the governmental unit (in
accordance with rules similar to the rules of section 147(f)(2)[IRC Sec.
i47(f)(2)] (other than subparagraph (8)(ii) thereof)) of which such
agency is a part,
(ii) such agency notifies the chief executive officer (or the equivalent) of
the local jurisdiction within which the building is located of such project
and provides such individual a reasonable opportunity to comment on the
project,
(iii) a comprehensive market study of the housing needs of low-income
individuals in the area to be served by the project is conducted before the
credit allocation is made and at the developer's expense by a
disinterested party who is approved by such agency, and
(iv) a written explanation is available to the general public for any
allocation of a housing credit dollar amount which is not made in
accordance with established priorities and selection criteria of the housing
credit agency.
(B) Qualified allocation plan. For purposes of this paragraph, the term
"qualified allocation plan" means any plan-(i) which sets forth selection criteria to be used to determine housing
priorities of the housing credit agency which are appropriate to local
conditions,
(ii) which also gives preference in allocating housing credit dollar
amounts among selected projects to-(I) projects serving the lowest income tenants,
(II) projects obligated to serve qualified tenants for the longest
periods, and
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(III) projects which are located in qualified census tracts (as defined
in subsection (d)(5)(C)) and the development of which contributes to
a concerted community revitalization plan, and
(iii) which provides a procedure that the agency (or an agent or other
private contractor of such agency) will follow in monitoring for
noncompliance with the provisions of this section and in notifying the
Internal Revenue Service of such noncompliance which such agency
becomes aware of and in monitoring for noncompliance with habitability
standards through regular site visits.
(C) Certain selection criteria must be used. The selection criteria set forth in a
qualified allocation plan must include-(i) project location,
(ii) housing needs characteristics,
(iii) project characteristics, including whether the project includes the use
of existing housing as part of a community revitalization plan,
(iv) sponsor characteristics,
(v) tenant populations with special housing needs,
(vi) public housing waiting lists,
(vii) tenant populations of individuals with children,
(viii) projects intended for eventual tenant ownership,
(ix) the energy efficiency of the project, and
(x) the historic nature of the project.
(D) Application to bond financed projects. Subsection (h)(4) shall not apply to
any project unless the project satisfies the requirements for allocation of a
housing credit dollar amount under the qualified allocation plan applicable to
the area in which the project is located.
(2) Credit allocated to building not to exceed amount necessary to assure project
feasibility.
(A) In general. The housing credit dollar amount allocated to a project shall
not exceed the amount the housing credit agency determines is necessary for
the financial feasibility of the project and its viability as a qualified low-income
housing project throughout the credit period.
(B) Agency evaluation. In making the determination under subparagraph (A),
the housing credit agency shall consider--
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(i) the sources and uses of funds and the total financing planned for the
project,
(ii) any proceeds or receipts expected to be generated by reason of tax
benefits,
(iii) the percentage of the housing credit dollar amount used for project
costs other Fhan the cost of intermediaries, and
(iv) the reasonableness of the developmental and operational costs of the
project.Clause (iii) shall not be applied so as to impede the development
of projects in hard-to-develop areas. Such a determination shall not be
construed to be a representation or warranty as to the feasibility or
viability of the project.
(C) Determination made-when credit amount applied for and when building
placed in service.
(i) In general. A determination under subparagraph (A) shall be made as
of each of the following times:
(I) The application for the housing credit dollar amount.
(%I) The allocation of the housing credit dollar amount.
(%II) The date the building is placed in service.
(ii) Certification as to amount of other subsidies. Prior to each
determinaTion under clause (i), the taxpayer shall certify to the housing
credit agency the full extent of all Federal, State, and local subsidies
which apply (or which the taxpayer expects to apply) with respect to the
building.
(D) Application to bond financed projects. Subsection (h)(4) shall not apply to
any project unless the governmental unit which issued the bonds (or on
behalf of which the bonds were issued) makes a determination under rules
similar to the rules of subparagraphs (A) and (B).
(n) Regulations. The Secretary shall prescribe such regulations as may be necessary
or appropriate to carry out the purposes of this section, including regulations-(1) dealing with-(A) projects which include more than 1 building or only a portion of a
building,
(B) buildings which are placed in service in portions,
(2) providing for the application of this section to short taxable years,
(3) preventing the avoidance of the rules of this section, and
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(4) providing the opportunity for housing credit agencies to correct administrative
errors and omissions with respect to allocations and record keeping within a
reasonable period after their discovery, taking into account the availability of
regulations and other administrative guidance from the Secretary.
History
(Added Oct. 22, 1986,P.L. 99-514, Title II, ~ 252(a), 100 Stat. 2189; Oct. 21, 1986, P.L.
99-509, Title VIII, 8072(a), 100 Stat. 1964; Nov. S0, 1988, P.L. 100-647, Title I, 1002
(i)(1)-(25), (32), 1007(g)(3)(B), Title IV, 4003(a), (b)(1), (3), 4004(a), 102 Stat.
3373-3381, 3435, 3643, 3644; Dec. 19, 1989, P.L. 101-239, Title VII, ~ 7108(a)(1), (b)-(e)
(2), (f)-(m), (n)(2)-(q), 7811(a), 7831(c), 7841(d)(13)-(15), 103 Stat. 2306-2321, 2406,
2426, 2429; Nov. 5, 1990, P.L. 101-508, Title XI, 11407(a)(1), (b)(1)-(9), 11701(a)(1)
-(3)(A), (4), (5)(A), (6)-(10), 11812(b)(3), 11813(b)(3), 104 Stat. 1388-474, 1388-475,
1358-505-1388-507, 1388-535, 1385-551; Dec. 11, 1991, P.L. 102-227, Titie I, 107(a),
105 Stat. 1687; Aug. 10, 1993,P.L. 103-66, Title XIII, 13142(a)(1),(b)(1)-(S), 107 Stat.
437-439; Aug. 20, 1996, P.L. 104-158, Title I, 1704(t)(53), (64), 110 Stat. 1890; July 22,
1998, P.L. 105-206, Title VI, 6004(8)(5), 112 Stat. 796; Oct. 30, 2000, P.L. 106-400, 2,
114 Stat. 1675; Dec. 21, 2000, P.L. 106-554, 1(a)(7) (Title I, 131(a)-(c), 132-136), 114
Stat. 2763, Z763A-610-2763A-613; March 9, 2002, P.L. 107-147, Title IV, Subtitle B, 417
(2), (3), 116 Stat. 56; Oct. 4, 2004, P.L. 108-311, Title II, 207(8), Title IV, 408(a)(3),
118 Stat. 1177, 1191; Dec. Z0, Z007, P.L. 110-142, 6(a), 121 Stat. 1806; July 30, 2008,
P.L. 110-289, Div C, Title I, Subtitle A, Part I, 3001, 3002, 3003(a)-(g), 3004(a)-(g), Part
II, 3007(b), 122 Stat. 2878, 2879, 2880, 2882, 2886; Feb. 17, 2009, P.L. lil-5, Div B,
Title I, Subtitle E, 1404, 123 Stat. 352; ]an. 2, 2013, P.L. 112-240, Title III, 302(a), 126
Stat. 2328; Dec. 19, 2014, P.L. 113-295, Div A, Title I, Subtitle B, 11Z(a), Title II, 212
(a), 221(a)(7), 128 Stat. 4014, 4033, 4038.)
(As amended Dec. 18, Z015,P.L. 114-113, Div Q, Title I, Subtitle A, Part 4, 131(a), (b),
129 Stat. 3055.)
Annotations
INTERNAL REVENUE CODE

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Terms: IRC Sec. 42
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DOCUMUENT 13
23-90 OF THE ZONING RESOULUTION
INCLUSIONARY HOUSING
-13-
23-90
INCLUSIONARY SOUSING
("7/29/09)
23-91
Definitions
For the purposes of this Section, inclusive, maL-ter i.n ital.i.cs i=
defined either in Section 12-7.0 (DEIf~INITI0N5) or in this Section.
(2/2/11)
23-911
General definitions
The following definitions shall apply throughout Section ?_3-90
(T~TCLUSIONARY HOUSING), incl.usi.ve:
Administering agent
An "administering agent" i.s the entity responsible For ensuring,
pursuant Yo a #reyulat.or.y agr.eementlf, that:
(a)
each subject rental #affordable housing unitdk is renCed in

compliance with such Ikrec~ulatory ag.reement~k at ~krent-uplk anti
upon each si.tbsequent vacancy; or.
(b)
each subject #khomeownership a:Efo.rdable housing uni.td{ is owned

and occup:i.ed in compliance with such ikregu].atory agreement# at
i~sa:le4k and upon each ~lresale#k.
Affordable floor area

(a)
Where all of the ~kdwel.l:ing units#, #rooming uni.tsik and

dksupportive housing units in a Ikgenerating site-0k, other than
any 14super's unittf, are tkaf:Eordable housing unitslk, all of the
dkresidential ].00r ax.ea4k, oz ~kcommuniL- y facility floor area4k
for a #supportive housing projectdk, in such 4kgenerating sii:e-0k

i.s "affordable floor area."
(b)
Where one or more of the ~kdwelling units-0k oz ;krooming nnitsdk in

a #kgenerati.ng si.t.e4k, other. than any ~ksuper's uni.t~k, are not
~kaffordable housing uni.ts4t, the dkaf~Pordable floor ar.ea~k i.n such
$generating site4i is the sum of:

(1)
all of the Ikresidential floor area# within the perimeter

walls of the 4kaffordable housing uni.tslk in such
~kgenerating sitelk; plus
(2)
a figure determined by multiplying the Jkresi.dential floor

areaak of the fkeligible common areasik in such #generciting
siteik by a fraction, the numerator of which is all of the
~kresidential floor area -0k vrithin the perimeter wa11s of the
~kaff_ordabl.e housing ~uiitslk in such lkgenerating site4k and
the denominator of which is the sum of the presidential
floor area$ within the perimeter wa11s of the lkaf.fo.rdable
housing units 4k in such ~kgenerating site#k plus the
Bresi.dential floor area~k within the perimeter walls of the
~kdwelling unitsdk or dkroomi.ng uni.ts~k in such lkgenerating
si.tetk, oL- her than any -0ksuper's unit:#, that are not
~kasfordable housing units#.
Affordable housing
"Affordable housing" consists o:E:
(a)
Ikaffordable housing units4i; and
(b)
fkeligi.ble common areaslk.
Affordable housing plan

An "affordable housing plan" is a plan approved by 4kHPDik to
tkdevelop~, rehabi7.i.tate or. preserve r.enta]. or. lkhomeownersh:ip
affordable housinglk, pursuant to the provisions of Section 2.3-90,
inclusive.
Affordable housing unit

An "affordable housing unit" is:
(a)
a 4fdwel.ling
for class A
and that is
agreementlk,
unii:~k, other. than a lksuper's unitdk, that is used

occupancy as defined in the Multiple Dwelling Law
or will be restri.ct~d, pursuant to a lkregul~tory
to occupancy by:
(1)
4klow income househc~lcis~k;
(2)
where permitted by Section 23-953 (Special floor area

compensation provisions in specified ar.eas), either ~kl.ow
income householdsl~ or a combination of fklow income

households and moderate income Piouseholdsdk or Ikmiddle
income househol.dslk; or.
(3)
upon ~kresale~k of 4fhomeownership affordable housing units-0k,

other #eligi.ble buyerslk, as zpp:ticable;
(b)
a #krooming uniLil, other than a iksuper's uniTik, that is used for

class 6 occupancy as defined in the ~lulliple Dwell.:ing Law ar:d
that is or wi11 be restricted, pursuant to a ;kregulatory
agreement#k, to occupancy by 4klow income householdslk; or
(c)
a lisupportive housing unit~i within a #supportive housing

projecY.~i.
IkAfiordable housing units$ that are restricted to #homeownershiptk,

as defined i.n Sec t.i.on 23-97.3, pursuant to a Ikregulatory agreementdk,
must be ~kciwelling units~k.
Cap:i~al element
"Capital elements" are, with respect to any ~6generating s:ite#k, the
electrical, plumbing, heating and venti.l.ati.on systems i.n such
~kgenerati.ng sitelk, any air conditioning system in such ikgeneraL- ing
siteik and all facades, parapets, roofs, windows, doors, elevators,
concrete and masonry in such ikgenerating site -0i and any other
portions of such Ikgenerating sitelk specified in the #guidelines$.
C.ompeiisat.ed development
A "compensated development" is a ~kdevelopmentdk, an #enlargemenLlk of
more than 50 percent of the Ikfloor ar.ealk of an existing 4fbuildinglk
or, where permitted by the provisions of Section 98-262, a
Ikconversion4k of a ikbuildingik, ox portion thereof, from non~kresi.dential. uselk to ~kdwellinc~ uniL- slk, that is located within a
I{compei~saLed zoning lotlk.
Compensated zoning lot

A "compensaL-ed zoning lot" is a ~kzoning lot# 'that contains a
tkcompensated developmentdk and receives an increased floor. area
ratio4k, pursuant to the provi.si.ons of Section 23-90, inclusive.
,Completion notice
A "compleL- ion notice" is a notice from IkI]PDdk to the Department of
Buildings stating that the 46affordable housingdk in all or a portion

of any -0kgenerat:ing site-0k i.s comp7.ete and stating the ~6a:E:Eordable
floor area4k of such ~kaffordable housingdk.
Eligibly common area

"Eligible common area" includes any IEresidential floor areafk in a
i6generating site~k that is located within the perimeter walls of a
aksuper's unit, and also includes any 1kresidenti.al floor ~reai{ in
such tkgenerating sitelk tYiat is not located within the perimef:er
walls of any other Ikdwel.ling unit~k or ~krooming unit~k, except any
Ikresident.ial. floor arealk for. orhi.ch a user. fee is charged to
residents of #affordable housing units4k.
Floor area compensation

"Floor area compensation" i.s any additional. Ifresi.cl~ritial floor. area#k
permiCted in a tkcompensated development.Jk, pursuant L- o the provisions
of Section 23-90, inclusi~~e.
Genera t.i.ng s:i.te

P. "generating site" is a -0kbui.lding;k or ikbuildi.ng segmenY.lk containing
either Ikresidential affordable floor areali or a Iksupporta.ve housing
projecttk, which generates 4ktloor area compensationdk. Nonikresidential floor areafk on a -0kgenerating site~k, other than a
Iksupportive housing projectile, may not generate 9kfloor area
compensation~k.
Gsandfathered tenant
A "grandfathered tenant" :is any ~Ikhouseholcl~k that:
(a)
occupied an -0kaffordab].e housing unitik in Ikpreserv~tion

affordable housinglk or Iksubstantial. rehabiliL- ation affordable
housing4k on the ikregulatory agreement datc~k, pursuant to a
leas, occupacy agreement or statutory tenancy wider. which one
or more members of such ~khousehold~l was a primary tenant of
such lkat-fordable Tiousing units; and
(b)
has not been certi:Eied by the dkadministering agent$ to have an

annual income belovr the dklow income limit~k, 46moderate income
ordabl.e housing unit4k; or
(c)
in ~ithomeownership preservation affordable housing# or
lkhomeownership substant:i.al rehabilitation affordable housingik,

has been certified by the 4kadministering agenCll Co have an
annual income below the lklow income ].i.mi.t~k, ~kmoder.ate income
1imi.t-01 or #kmiddle income limi.tlk, as app:L:icable to such
Ikaffordable housing unittk, bLrt has elected not to purchase such
;kaftordabl.e housing uniLik.
Guidelines
'Phe ~~gUideli.nes" are the -0kguidelines4k adopted by 4kHPD~k, pursuant to
pzragraph (k) of Section 23-9h (Requi.rements for Gen~r.ati.ng Sites).
Fiotasehold
Prior Lo fkini.tial occupancyfk cf an dkaffordable housing unittk, a
"househn].d" is, col.l.ecti.vely, all oL- the persons inCendiny to occupy
such 4kaffordable housing i~nit4k at ~kinitial occupzncy~k. AfL-er
lkinitial. occupancy4k of an ika:Et-o.rdable housing unit-0k, a Ikhousehold-0k
is, collectively, a1:L of the persons occupying such 1kafFordab:Le
housing unit#k.
HPD
"HPD" is the Department of Housing Preservation and Deve].opmenL- or
its successor agency or designee, acting by or through .Ls
Commissioner. or his or her. designee.
Income index
The "income index" is 200 percent of the Very Low-:[ncome Limit
established by the U.S. Department of Hous:i.t~g and Urban Development
(F1UD) .E'or Multifamily Tax Subsidy Projects (MTSPs) in accordance
with Internal Revenue Code Sections 42 and 142, as amended by
Section 3009(a) of the dousing and Economic Recovery Act oL '2008, as
adjusted fvr household size. -0kHPD~k shall adjust such figure for the
number of persons in a ikhousehol.d~k in accordance with such
methodology as may be specified by f-IUD or in the ikgui.delirtes9k. ~dHPD#
may round such fi.qure to the nearest 50 dollars or S.n accordance
with such methodology as may be specified by HUD or in the
ikguidelinesik. If HUD ceases to establish, or changes the standards
or methodology for the establishment of, such income limit for MT>Ps
or ceases to establish the methodology for adjusting such figure for
~khouseholdik .size, the staz~~arcis and metl~ocioloy,y for .establshment,,o~
the lkincome index~k shall be specified in the #kguidelines-0k.
Initial occupancy
~~L~itial occupancy" is:
(a)
in rental. -0kaffordable housirig~k, the :First date upon which a

particular tkhouseholdN occupies a particular #af.fordabl.e
housing unit$ as a tenant, and shall not reLer to any
subsequent- renewal lease of the same $affordable housing unit#k
to the same tenant ikhousehold4k; or
(b)
in -0phomeownership affordable housing#, the first date upon

which a particular dkhousehold-0k occupies a particular.
IkaEfordzble housing unit#k as a ~khomeowne.r4k.
I'or any tkr~ousenolaak occupying an Ikaffordabl.e hous:i.ng unitlk of

Ikpreservation affordable Yiousinglf or -0ksubstantial rehabilitation
a:Efordable housingik on the ~kregulatory agreemenT date#, 9Einitial
occupancyfk i.s the 4kregulatory agreement date#.
i,ow income floor area

The "low income floor. area" is the ~kaffordable floor arealk that is
provided for. #low income households or, upon ~kresale# as defined in
Section 23-913, #keligi.ble buyers#.
Low income household

A "low i,~come household" is a -0khousehold4p having an income less than
or equal to the #low income limi.t4k at #kiniti.al occupancy#, exr.,ept
that, with regard 'to #low income E1oor area~k w=thin dkpreservation
affordable housingdk or #substantial rehabilitation affordable
housing$, a dkg.randfathered tenant{ shall. also be a iklow income
household4k.
Low income :Li.mit

The "low income limit" is 80 percent of the ikincome indexdk.
Middle income floor area

The ~~middle income floor area" is t:he 4kaffor.dable floor area4k that.
is provided for ~kmiddle .income householdslk or, upon ~kresalelk as
defined in Seclion,,,23 913,,, for ikeligible buyers#.
_
_
_
Miciclle income household
A "middle income household" is a #household~t having an income

greater. than the ~kmoder.ate income limit -0k and less than o.r equal to
the middle income li.mit4k at dkinitial occupancy4k, except that, with
.regard to #middle income floor area$ within ~ksubstantial
rehabi].iL-ation affordable housing#, a Ikgrandtathered tenantdk shall
also be a Ilmiddl.e income hotiseholddk.
Middle income limit

The "middle income limit" is 175 percent of the ~kincome index#.
Moclerale income floor area

The "moderate income L1oor area" is the ikaf:[ordable floor areti~k that
is provided For 4imoderate income households~k or, upon 4kresale4k as
defined i.n Section 23-913, For f~eligib].e buyerslf.
Moderate income household

F~ "moderate income household" :i.s a ~khous~hold~k having an income
greater than the #lo~J income ].imil;-0k and less than or equal to the
ikmoderate income limit;k at ~kinitia]. occupancy#, except that, with
regard to -0kmod~.rate income floor area4k w:i.thin $substantial
rehabilitation aLfordabie housingik, a Ifgrandfathered tenanti4 shall
also be a Ikmoderate income householddk.
Moderate income limit

'Che "moderate income limit" is 1?_5 percent of the Ikincome index~k.
New construction affordable housing

"New construction affordable housing" is akaffordabl.e hoiasi.ng~k that:
(a)
is located in a -0kbuildinglk or portion thereof that dial not

exist. on a date which i:> 36 montY~s prior to the ~kregu:latory
agreement datetf;
(b)
is tocated in Ik:Ei.00r arealk for cahi.ch Lhe UeparCment of

Buildings first issued a temporary or permanent certificate of
occupancy nn or after the dkrequlatory agxeement,date4k;,,and
(c)
complies with such additional criteria as may be specified by

4kHPD# in the #guideli.nes#.
Permit notice
A "permi.t notice" ;is a notice from IkHPD~! to the llepartmcnt of
Buildings stating that building permits may b~ issued to a
$compensated development$ to uti].i.ze 4kfloor area compensationik from
all or a portion of the -0kaffordable floor area~k on a ~kgencrating
sitelk. Any ~kpermit notice#f shall:
(a)
state the amount of ak:Low income floor aread~, ikmoderale income

L-loor area -0k or ikmiddle income floor area#k attributable to such
Ikgenerati.ng si_tefk;
(b)
state whether the ~kaffordable housing~k comprising such 9kloor

income floor area~i, ~kmocierate income :E1oor area~k or ~kmiddle
income floor area-0k is knew calstr.uction affordable housing4k,
lisubst.antia7. rehabilitation afLordabl~ housi.ng~k or.
1ppr.eservation affordable housi.ng4k;
(c)
sCate whether the 4laffordabie housing-0k comprising such Iklow

income floor arealk, Ikmoderate income floor area# or lkmiddl.e
income floor arealk has uti.:l.i.zed ~kpubl.i.c funding~I; and
(d)
speciFy the amount of such ikafordable housing~k that the

dkcompensated developmentlk may utilize to generate ~kfloor area
eomp~nsation~k.
Preservation affordable housing

"P.reservation affordable housing" i.s aka f.t-ordab].e housi.ngit that:
(a)
is a ikgenerating site4k that existed and was legally permitted

to be occugied on the ~kregulatory agreement date~k, except as
permitted .in the ikguidel:ines~k; and
(b)
complies with the pr.ovi.sions of. Section 23-961, paragraph

(e)(Special requirements for. rental presesvati.on affordable
housing) or Section 23-962, paragraph (f)(Spec.ial requiremEnts
for homeownership preservation a:Efordable housi.ng), as
applicable.
Public Funding
"Public Lundinq" is, any gran L, loan or ,,subsidy Fr~m,,any Federal,
State or local agency or instrumentality, including, but not limited
to, Che disposition of real. property for less than market value,
purchase money financing, construction financing, permanent
financing, the utilization of bond proceeds and a

- llocations of low
income housing tax credits. lkPublic funding -0k shall noT include the
.receipt of rent subsidies pursuant to Section 8 of the United States
Housing Act of 1937, as amended, or an exempTion or abatement of
real propert=y taxes pursuant to Section 920-a, SecC:ion 470-c,
Section 921-a, Section 922, Section 988-a or Section 489 of the Real
Property Tax Law, Article XI of the Private Housing Finance Law or.
such other programs of full or partial exempCion From or abatement
of real property taxation as may be specified in the -06guidelines-0f.
Regulatory agreement
A '~regulalory agreement" is an agreement between ~iIPD4k and the owner
of the ~kaffordab].e housing-0k that requires comp:Liance with all
applicable prov:i.sions of an llaffordable hous.i.ng planik, Section 2390, inclusive, and the ~kguidelines#.
Regulatory agrFement date

The "requlaLory agreement date" is, with .respect to any Ikaffordable
housing~k, the date of execui:ion of the applicable ~kregulaTory
agreementfk. :CE a deregulatory agreementlt is amended at ar:y time, the
~kregulator.y agreement date# is the original date of execution of
such 4kregul.ato.ry agreemenY4k, without regard to the date of any
amendment.
Regulatory period
The "reg~.zlatory period" is, with respect to any ~kgener.ati.ng sitelk,
the er.t:ire period of time during which any 1kLloor area compcnsation~k
generated by the ~kafEord~ble Floor area# on such ~kgenerat.ing sitelk
is the subject of. a permit, L- empora:ry cerY.ificate of occupancy or
permanent certificate a[ occupancy issued by the Department of
13uildinas, or is otherwise under. construction o.r i.n use in a
tkcompensated d~velopmentlk.
Substantial rehabilitation affordable housing

"Substantial rehabilitation affordable housing" is -0{af.fordable
housinglf that:
(a)
is a ~6generating site~6 that existed on the Ikregulatory

agreement. dat~ff; .and....
(b)
complies with the provisions of Section 23-961, paragraph (f)

(Special. requirements fo.r rental. substanCial rehabilitation
affordable housi.ng), or. Section 7_3-962, paragraph (g) (Special

requirements for homeoumership substantial rehabilitation
aC:fordable hous:ing), as applicable.
Super's unit
A "super's unit" is, in any ~gcnerating sitetk, not more than one
dkdwelling unit$ or 4kroomi.ng unit -0k that is reserved for occupancy by
the superintendEnt of such ~kbuilding~k.
("!/29/09)
23-912
Definitions applying to rental affordable housing
The following definitions shall apply to rental ~kaffordable
housing~k:
I~ega1 regulated rent
A 'legal. .regulated rent" :is, with respect to any liaffordable housing
unit#, the initial ~kmonthly rent~k registered with the Division of.
housing and Community Renetival at ~krent-tapik in accordance with
paragraph (b) of SecC:ion 23-961 (Additional requirements for .rental
affordable housing).
Maximum monthly rent

The "max.i,mum monthly rent" i.s:
(a)
30 percent of L- he Ik1ow income limitik ror an fkaffordable housing

unitik restricted to occupancy by ~klow income households~k,
divided by 12, minus the amount o:E any app].irable #utility
allowancetk;
(b)
30 percent of the #moderate income limit4k for an ikaffordab7.e

housing uni.tdk restricted to occupancy by Ikmoderate income
households-0k, divided by 12, minus the amount of any appl.icab7.e
-0kutility allowance#k; and
(c)
30 percent of the #middle income lim9.tik for an -0kaffordab].e

housing unit4k restricted to occupancy by ikmiddle income
househaldsik, c~ivadFd by 12, minus ,:the amoun4 of-any :applicable
ikutility allowaricelk.
Monthly renLThe "monthly .rent" is the monthly amount: charged, pursuant to

paragraph (b) of Section 23-961 (Additional requirements For rental
affordable housing), to a tenanC in an IkafEordabl.e housing un:itlk.
Rent stabi.:I.i.zation
"Rent stabilization" is the Rent Stab.il.ization Law of 1969 and the
Emergency Tenant Protection Act of 1974 and all regulations
promulgated pursuant thereto or in connection therewith. If. the Rent
Stabi.l.ization Law of 1969 pr the Emergency Tenant P.rotecti.on Act. ef.
1974 is repealed, inva].i~ated or allowed to exp:i.re, 4krenL
stibilizati.on#k shall be defined as set forth in the ~guidelines4k.
Rent-up
"Rent-up" is the fi..rsC rental of vacant lkaffordablc housing units-0k
on or. after tTie $regulatory agreement- daL-e~k, except that, where one
or more #kaFfordable housing units~k in ~kpreservation affordable
l~ousing~k o.r. aksubstanti.a]. rehabilitation affordable housing~k were
occupied by -0kgrandfathered tenants#k on the ~kregul.at-ory agreement
date4t, 4krent-up;k shall. have the same meaning as -0kregulatory
agreement datelk.
Rent-up date
The "rent-up date" is the date upon which leases For a percentage of
vacant IkaEFordable housing unit.s4k set Forth in the ~kgui:lelines~k have
been executed, excepC that, whcr.e one or more IkaFF:ordable housing
units~k in ~kpreservati.on aLfordable housi.ng~k or' iksubstantial
rehab:ilitati.on affordable housingdk were occupied by dkgrandfathered
tenants~k on the dkregulatory agreement datefk, i:he tkrent-up dateik :is
the ~kregulatory agreement date-0k.
SUpporti~~e housing project

A "supportive housing project" is a non-profit irlstittition oiith
sl.~epinc~ accommodations, as specified in Section 22-13 (Use Group
3), where:
(a)
100 percent of the aksuppor.tive housing unitsdk within such

~tgenera:~inq sitclk, have been restsicted,to use,as Ikaffordabe
housingdk fo.r persons with special needs puxsuant to a
-0kregulatory agreement-0k;
_ _
(b)
such Ikgenerating sit-elk does not contain any ~kdwelling un:LtS or

grooming unit~k that is not dkaccessory~; and
(c)
such 4kgeneratiny sitedk is not a flcompensated development4k.
Supportive housing unit

A "supportive housing unit" is 4kfloor areatk in a -0ksupportive housing
prpject~ that consists of sleeping quarters for persons with special
needs and any private living space appurtenant thereto.
Uti.l.ity allowance
A "utility allowance" is a monthly al.low~nce set by IkHPDIk for the
payment o:E utilities where the tenant- of an -0kaf.fordable housing
unit4k is recruired to pay all or a portion of the utiliL- y costs with
respecC to such ~kaffordable housing unit-0k in addition to any
payments of #kmonth].y rent~k.
(7/29/09)
23-913
Definitions applying to homeownership affordable housing
The following de:Einitions sha'_1 apply Lo #homeownership affordable
hous:ing~k, where ~khomeownership# is as defiled :i.n this Section:
Appreciated price
The "appreciated price" For any Ikhomeownership affordable housing
unit4k is the product of the dksaledk or. $resalelk price o:E such
~khomeownership a:[fordable housing unitik on the px.ev:ious Iksale dateak
and the -0k~ppreciation indexik applicable at ~kresalelk as specified in
the ~kguide:Linesdk.
Appreciation cap
The "appreciation cap" is the ~kresaletk price at which the combined
cost of ~kmonthly Fees~k, lkmortgage paymentslk, utilities and property
taxes to be p~.id by the 4khomeowner#k would be equal to 30 percent of:
(a)
1?_S percent of the IFincome index~k for a ~khomeotivnership

affordable housing unit4k that was restricted t:o occupancy by
~klow income householdsdk at #saletk; or
(b)
175 percent of the #income index~k for a ~phomeownership

affordable housing unit4k that was restricted to occupancy by
ikmoderate income households-0k at -0ksalelk; or.
(c)
200 percent of the dkincom~ index# for a i~homeownership

affordable housing unit4k that Baas restricted to occupancy by
ikmiddle income households# at -0ksaleB.
Appt~ciation .index
The "apprec:iati.on index" is 100 until August :t, 207.0. On or after
August 1, 2010, the -0kappreciation index# shall be a number greater
than 100, .representing the cumulative increase i.n Ikre.sal.elk pr.icE of
a ~khomeownershi.p affordable housing unit~6 permitted pursuant to the
annual rates of increase established by ~kE1PDik.
1kHPD~p shall set tYte annual rate of increase at the ,ame rate as the
percentage change i.n the Consumer Price Index for all urban
consumers, as defined by the U.S. Bureau o:E Labor Statistics, fo.r
the 12 months ended on JunE 30 of that year, plus one percent per
year, but the annua]. .rate of increase sha11 be no less than one
perceril per year. IkHPD~k shall adjust= the Consumer Price Index
component of the ~kappreciati.on index~k nn August 1 of each calendar
year, commencing on August. 1, 2010, based on the percenCage change
in the C~nsume.r Price Index for the 12 months ended on June 30 o:E
'that calendar year. ror a fraction of a year, the components of the
~kappreciation indexlk shall be set as spec.ifi.ed in the -0kguideliriesak.
{HPUIt may adjust Che methodology for calculating the dkappreciation
index$ not more than pl10E every two years in accordance with the
$guidelines$.
Commencement date
The "commencement date" is the date upon which 4ksaleslk Eor a
percentage of ikhomeownership affordable housing unitsll in a
~kgenerai:ing s:iteik set Lorth in the #k9uidelines4k have been completed,
except that, where one or more ikhomeownership affordable housing
units~k in Ikpreser.vation affordable housingik or {ksubstantial
rehabilitation af:Eordable housing# were occupied by Ikgrandfathered
tenants4k on the lkregulatory agreement datelk, the afcommencement datetk
is the Ikregul.~tory agreement date-0k.
Condoml.nium association
A "condomini.um association" is an organization of condominium
$homeowners46, with ~ form of governance specified iri the
~guidelinesdk, that manages the common areas and 4tcapital elements4k

of a 4kgenerati.ng si_teik.
Cooper.aYive corporation
A "cooperati.ve corporation" is any corporation organized exc].usiv~l.y
for the purpose of providing housi.~tg accommodations to shareholders
who are persons or families entitled, by reason of ownership of
shares i.n such corporation, to res.i.denti.al occupancy.
Doom payment
The "down payment" is a payment that .is not secured by any form of
debt, made on or bcfo.re the -0ksale date-0k by Lhe ~k~li.gible buyer{
approved by the ~admini.stering agent4k to purchase z ~khomeoNrnership
affordable housing unit#k.
Eligible buyer
An "eligible buyer" is a ~khousehold-0k that qualifies to buy a
speci.:E_ic IEhomeowner.ship af.fosdable housing unit~k. Such a BhouseholdiF
sha17.:
(a)
except in the case of lksuccessionik:

(1)
be, at the time of appl.icati.on for an ini.ti.al 4ksaleik, a

~klow income household#, -0kmoderate income household# or
~kmiddle income household~k For which, at the initial
price~k, the comk>S.ned cost of dkmonthly fees-0k, fkmor.Y.gage
paymentsik, utilities and property taxes that would be paid
For a ikhomeownership af:Eordable housing unitif is not more
than 35 percent and not less than 25 percent of such
ikhousehol.d's#k income. However, :Eor a fkhouseholdlk that
re;i.ded on a I6generating site4k on the date of submission
of an ika:Efordab].~ housing plank, ~kHT'D~k may waive L- he
requirement that housing costs be not less than 25 percent
of such ~khousehol.d'stk income;
(Z)
be, at the time of application For a ikresaleik, in the case

of an -0kaffordable housing unit~k initially limited to
fksale~t to a Iklow income householdlk, lkmoderate income
household-0l or ikmiddle income householdR, any ~khousehold-0k
for which, at the ~kmaximum resale price#, the combined
cost of Ikmonthly Leeslk, ikmortgage p~yments~k, u~illties and
property taxes tYiat would be paid for a dkhomeownership
affordable housing unitik is not more than 35 percent and
not less than 75 percent of such ikhousehold'sdk :i.ncome;
(b)
(3)
have cash or equivalent assets that are at least ellual to

the required dkdown paymentik for such ~lka~~For~able housing
unit#k. However, ~kHPD# may wive this requirement for a
#~household~k that resided on a 1Egenerating siL- e4k on the
date of submission of an ikaffordable housing plank to
#kHPDfk; and
(~)
meet such additional eligibility requirements as may be

specified in the -0kguidelines#.
in the case; of -0ksuccession~k:

(].)
be, a(. t:.he time of application, a Iklzouschol.dlk for which,

at the ~kmaximum resale price#, the combined cost of
tkmonthly :Eeesik, ~kimpirted mortgage paymen~ts~k, utilities and
property taxes for the subject IkYiomeownership affordable
hpusi.ng unit~k is not less than 25 percent of such
ikhousetiol.d'slf income; and
(2)
meet such additiona:t eligibility requirements as may be

specified in the Ikc~ui.del:ineslk.
A ikgrandfathered tenant~k is not an ikeli.gibl.e buyerik unless such

dkgr.ancifathered tenantak has been cer.~5.fied by the lladminister:i.ng
agent# to have an annual income at or below the 4klow income limitdk,
~kmoderate income limit$ or #middle income l.im.itik, as applicable t.o
such -0khomeownersYtip affordable housing unit~k.
Family member.
"Family member" shall have 'the meaning set forth in the
dkgtaidelineslk.
I-]omeowner
A "homeowner" is a person or persons who:
(a)
owns a condominitiim ~khomeownership affordable housing unitN and

occupies such condomi.ni.um Ikhomeocvnership affordable housing
unit~k in accordance with owner occupancy requirements set Forth
in the #kguidelS.nes4k; or
(b)
owns shares in a ~kcooperative corporation~k, holds a proprietary

lease for an ~khomEownershipaffordable housing ,unztik awned by,
such Ikcooperative corporationik and occupies such Ikhomeowner.;hip
affordable housing unitdk in accordance with owner occupancy
requiremeni:s set forth in the Hguidelines#k.
Homeownership
"Homeownership" is a form of tenure fo.r. housing, includi.n~ dkdwell.i.ng
units occupied by either the owner as a separate condominium, a
sharehol.des in a #cooperative corporation~k pursuant to the terms of
a proprietary lease, a Ikgrandfathered tenant!{ or an autho.r.i.zed
sublettor pursuant to the ~kguidelines~6.
Imputed mortgage payment

An "imputed mortgage payment" i.s the maximum lkmortgage paymentil at
prevailing interest rates for a qualifying 4kmortgage~k that could be
paid L- o purchase a Ikhomeownership affordable housing unitlk at. the
#pmaximum resale pricelk, calculated in accordance with the
Ikgu:idel.i.nes4k.
Initial price
The "initial price" is the price at which a ~khomeowr~ership
affordable housing uni.tik may be offered for ~ksale~k for the :First
time, pursuant to a ikregulatory agreementik.
Maximum resale price

The "maximum resale pr.i.r_e" Eor a ~khomeownership atFordable housi.ny
unitlk i_s Chc lesser of the ltapprec.iated pr.ice4k or the 4kappreciation
cap$ for such 4khomeo4mership affordable housing unit~k.
Monthly fees
The "monthly fees" are any payments charged to a Ikhomeownert! by a
ikcooperative corporation~k or ~pcondominium associationtE to provide
for the reimbursement of i_he applicable dkhome~wnership affordable
hoiasi.ng unit's1k share of the expenses of such #Ecooperat:ive
corporation# or tkcondominium association4k, as permitted by the
Ikregulatory agreement#.
Mortgage
A '~mor;tgaqe-is a mortgage loan,,ar a loan t~,,purch~sP shaxtes in alkcooperative corporztion~p, L- hat has been approved by the
dkadministering agent$ and that has a fixed .rate of interest, a term
of at least 30 years at every ~ksale~k and 4kresale4k, a value not
exceeding 90 percent of- the ~ksale~k price of such homeownership

affordable housing unitlk at the time of the initial ~ksaledk or 90
percent of the $maximum resale priceik of such #khomeownership
affordable housing un.it~ at any time after the initial ~ksal.e~i, and
that is otherwise :i.n compliance with the -0kguidelines}k.
Mortgage paymeirt
The "mortgage payment" is any monthly repayment o.f. principal and
interest on a ~kmortgage~k.
Resale
A "resale" :i.s any transfer of title to a condominium {khomeownership
affordable housing unit# after the First ~ksale~k or any transfer of
ownership of Lhe shares in a tkcooperalive corporationdi which are
appurtenant to an lkhomeownership aL-fordable housing unitik after 'the
fSsst #ksale~k.
Sale
A "sale" is the first transfer of i:itle to a condomi.ni.um
#homeownershi.p affordable housing unit4k or the first transfer of
ownership of the shares .in ~ ~kcooperative corporationik which are
appurtenant L-o an ~khomeownership affordable housing uni.t4k on or
aster the fkregulatory agreement datelk.
Sale date
A "sale date" is the date of the #ksale4k o.r dkresale~k of any
#khomeownersi2i.p af.fordabl.e housing unitlk. However, for J{homeownershi.p
aE:Eordable housing units~k in ~kpr'eservation affordable housing~k or
;ksubstantial rehabilitation affordable housingdk occupied by
~kgrandfathered tenants~k on the ~kregulator.y agreement date~k, the
initial lksale daf:ell shall be the l~regulator.y agreement date~k.
Succession
"Succession" is ~ lkresale~k from a ~khomeowner4k to a -0kfami.ly memberik
of such -0khomeowner4t.
(%/29/09)
23-92
General Provisions
The Inclusionary I]ousirig Program is established to promote the
creation and preservation of housing for residents with varied
incomes in redeve:Loping neighborhoods and thus to promote the
general welfare. The requirements of this program are set forth in
Section 23-90 (INCLUSIONARY HOUSING), inclusive.
Wherever the provisions of Section 23-90, inclusive, provide Char
approval is required, ~k}IPD~ may specify the Lorm of: such approval in
the ~guide].ines-0k.
(7/29/09)
23-93
Applicability
(10/9/13)
23-931
Lower income housing plans approved prior to July 29, 2009
Any Iklower income housing plan4k, as defined by Sect:Lon 23-93 prior
to July 29, ?_009, that has been approved by 4kHPDik prior to such
date, and results, withS.n one year after such approval., in the
execution of a restrictive declaration pursuant to SecC:ion 23-95,
paragraph (e), as such Section existed prior to July 29, 2p09, sha11
be governed solely by the regulations in effect prior to July 29,
2009, unless a liregulatory agreementlk with respect thereto
specifically provides to the contrary. However, Section 23-955
(Additional requirements for compensated developments) shal]. apply
to any permits or cent Ficates of: occupancy for ikcompensated
developmentst6 issued on or after July ?.9, 2009.
'Phe ~tfloor area r~tiotk of a ItcompensaLed developmentlk may be
increased in exchange for 1plower income housing~k, pursuant to a
iklower income housing plank, as both terms were defined by Section
23-93 prior to July 29, 2009, provided such ik].ower income housing~k
complies with all applicable provisions of Section 23-90
(IDICL[JSIONARY HOUS.T.NG) in ef:Eect prior to July 29, 2009, except as
provided in this Section. Where such ~ ikcompensated development~k is
located in -an E210 District outside of=#3nclvs~nary Hous~.ng
designated areas4k, Che provisions of Section ?.3-951 (Floor area
compensation iri R10 Districts other than Iciclusionary Housing
designated areas) shall not apply, and Section ?_3-991 (In R10
Districts other. than Inc].usionzr.y Housing designated areas) as such

Section existed prior to July 29, 2009, shall apply.
Any il].ower :income housing planik, as such Lerm was defined prior to
July 29, 2009, that has been approved by ~HPDik prior to such date,
and any .1ega1. document related ther.eLo, may be modified by d6HPD~k, to
apply the provisions of paragraph (~), (Monthly rent), of Section
23-961 to such 441ower income housing planfl.
(7/29/09)
23-932
R10 districts
The Inclusionary housing Program shall apply in all R10 Districts
located in IkInclus:i.onary Flouring desi.giiated ar.easl4, subject to the
provisions of Section 23-952. The Inclusionary I-lousing Program shall
apply in al.1. other R10 Districts, subject to the provi.si.o~~s of
Section 23-951 (Floor area compensation in R7.0 Districts other than
Inclusionary Housing designated areas), as applicable.
(7/29/09)
23-933
Inclusionary housing designated areas
The Inclusionary Housing Program shall apply i.n itIncl.usionary
Housing designated areasdk.
The Inclusionar.y Housing Program shall also apply in special purpose
districts when speci:Eic zoning districts or areas are defined as
ak:Cnclusionary Housing designated areasik within the special purpose
district.
ikInclusi.onary Housing designated arcaslk are listed in FPPEDIDIX E~ of
this Resolution.
(7/29/09)
23-94
Methods of Providing Agardakrle-Rousing
(a)
4kAfordable housingik shall be either -0knew construction

affordable housi.ng4k, 4ksubstantial reYiabilitati.on affordable
hous.ing~k or dkpreservation affordable housi.ng~.

(b)
When determining whether affordable housings is ~6new

construction affordable housingfk, ~ksubstantial. rehabilitation
affordable housing~k or ikpresc:rvaLiori affordable housing~k i.n
order to calctz].ate 4kfloor area compensationik, or when making a
dete.rminztion of which 4kbnildingik or tkbuilding segment~k
constitutes a 4kgeneratir.g site~k, -0kHPD-0k may separately consider
each #kbuil.ding# or #building segmenY.ik on a -0kzoning lotdk. Where
any such ~kbuildingN consists of Cwo or more contiguous section,
separated by walls or other barriers, ~kHPD# may consider all
re:Levant facts and ci.r.cumstances when determining whether to
consider the sections o[ such #{building# separately or
collectively, including, but not limited to, whether such
sections share systems, util.iti.es, entrances, common areas or.
other conunon elements and whether such sections have separate
deeds, ownership, tax lots, certificates of occupancy,
independent entrances, independent addresses or other evidence
of independent functional use.
(c)
The amount of 8affo.rdable floor areatk in any ikgeneratiny site4k

shall be determined based upon plans for such ~kgenerating site4k
which have been approved by the Department of Buildings and
which indicate thereon the amount of ik:E].00.r. area~k devoted 'L- o
~Iaffordable housing~k and the amount of #floor area# devoted to
other fpresi.dential useslk. However, For lkgenerating siteslk vrhere
the Department of Buildings does not require ~kfloor area~k
calculations, the amount of -0paffordable floor area~k shall be
determined by methods specified in the ~kgu:idelines~f.
(d)
The amount of ~klow income4k, ~kmoderate income~k and $middle

income floor area#k i,n a dkgenErat:inq s:itedk shall be determined
in the same manner as the calculation of ~kaffordable floor
arealk.
(e)
~kAffordzble housing unitsik shall be either rental -0kaffordable

housing#k or ~khomeo4me.rship affordable housinglk.
(%/29/09)
23-95
Compensated Zoning Lots
(7/29/09)
23-951
Floor area compensation in R10 Districts other than Inclusionary

Housing designated areas
The fkresidential floor airea ratiodi of a ikcompensat~d zoning lot~k may
be increased from 10.0 to a maximum of 12.0 at the rate set forth in
this Sect.i.on, if such ikcompensated zoning lotfk provides tkaffordabl.e
hous:i.ng4k that is restricted to $low income floor area#.
ror each square foot o[ Ikfloor area~k provided for a type o
-0kaL- fordable housing# 7.isted in the table in this Section, the #floor
area-0k of the 4kcompensated zoning lot4k may be increased by the number
of square feet set forth in the table, as applicable. Any
~kgenerating sitelk for which 4kpublic :Eundingdk has been received
within T.he 15 years preceding the -0kregul.ator.y agreement date~k, or
for wh:Lch Ikpublic fundinglk is committed to be provided subsequent to
such date, shall be deemed to be provided with ~kpublic funding#k.
OPTIONS
4~ithout ~kpublic funding~6
With ~kpubli.c f.und.ing~k
4kNew construction affordable

housingdk or Iksubstantial
rehabilitation affordab.l.e
housing~k
ikPreservation affordable
housing#~
~kNe~~ construction affordable
housi.ngi~, lksubstant:i.ai.
rehabilitation affordable
housing4k or ikpreservation
affordable housi.nglk
3.5
2.0
]..25
(10/9/13)
23-952
Floor area compensation in Inclusionary Housinq designated areas
The provisions of this Section shall apply in 4klnclusionary Housing
designated areasik set forth in APPENDIX E' of this Resolution.
The ikr.esidenTial floor area4k of a ~tzoning lotH may not exceed the
base Ikfloor area ratiodE set Forth in the fable in l- his Section,
except. that such $floor area4t may be increased on a dkcompensated
zoning look by 7..25 square feet for each square foot of ~klow income
floor areaik provided, up to the maximum Ikfl.00r area rat.ioR specifi.eci
in the tablet However, EYfe amount of #'1"ow income floor area
required to receive such dkfloor area compensationdk need not exceed
20 percent of the total ikfl.00r areaft, exclusive of ground floor. nortlkresidential floor areaA, or any $:Floor arcaik increase for the
provision of a 1kPRESH food storeak, on the -0kcompensated zoning lot-0k.

Maximum tkResidential Floor Area Ratiolk
Base -0kfloor
area ratios
Maximum Ikfloor
area ratio
2.00
2.20
2.20
2.42
R6' R6A R7-2-
L.?0
3.60
R7A R7-2~
3.95
9.60
R7-3
3.75
5.0
R7D
9.2p
5.60
R7X
3.75
5.00
~8
5.40
7.20
R9
6.00
8.00
R9A
6.50
8.50
R9D
7.5
10.0
R9X
7.3
9.70
R10
9.00
12.00
District
R6B
R6=
For ikzoning lotsdk, or portions thereof, beyond 100 feet of

a 4kwide street~t
for. Iizoning ].otsdk, or portions thereof, within 100 feet ota ikwide street~k
(11/25/19)
23-953
Special floor area compensation provisions in specified areas
(a)
Optional provisions for 4klarge-scale general developmentsik in

(;9-6 orC5 Dstr7.cts
Within a #large-scale general development-0k in a C9-6 or CS
District, the special opt:iona7. .regulations as set Lorth in this
paragraph, (a), inc:l.usive, modify the provisions o:E Section 23952 (Floor area compensation in Inclusi.onary Housing designated
a.reas):
(1)
The Ikr.esidential floor area~d oL a ikdevel.opment# or

dkenlargementlk may be increased by 0.833 square Feet for
each one square foot of #moderate income floor area~d, or
by 0.625 square feet for each one square font of ikmiddle
income Lloor area-0k, provided that for each square foot of
such 4pfloor area compensationdk, there is one square foot
o:E ~kf].00r area compensationll, pursuant to Section 23-952;
(2)
However, the amount of lkaffordable housing -0k required to

r.ecei.ve such 4kfloor area c:ompensationik need not exceed the
amounts specified in this paragraph, (a)(2). If
Ikaffordable hoizsing$k i.s provided for both -0kl.o~a :i.ncomedk and
lkmoderate income househo:Ldstk, the amount of ikmoderate
:income floor areatk need not exceed 15 percent of the total
Ikfloor area4k, exc].usivc of ground floor non--0kresidential
floor area$, on the ~kzoning lot#, provided that the amount
of lklow income floor area~k is at least 7.0 pe.r.cent of: the
toL- al -0kfloor area4k, exclusive of ground f:Loor non$residential floor area8, on the ikzoning .lot#. If
#affordable housi.ng4k is provided for both Ikmiddle income
households# and ikloco income householas#, the amount- of
~km.iddle income floor areadk need not exceed 20 percent of
the total dkfloor area#k, ~xcl.usi.ve of ground floor non4kresideirtial Floor area4k, on the #zoning lot#k, provided
that the amount of 4klow income floor area4k is at least 10
percent of the total. IkFloor arealF, exclus:i.ve of ground
floor non--0kresidential. .floor area4k, on the lkzoning lot$.
For the purposes of this paragraph, (a), inclusive, ~kl.ow income

floor area4k may be considered 4tmoderate income floor area~k ox'
~kmi.ddle income floor. area~i, and lkmoderate income Floor. area4k
may be considered 1kmi.ddl.e income :E].00r areaik.
(b)
Special provisions for ~klarge-scale general developmentslk in

Community District 1 in the Borough of Queens
Special provisions shall apply to 4kzoning loT.stk wi.t.h.in a
iklarge-scale general developmenttk that contains R6B, R'?A and
R7-3 Districts within an #Inclusionary Housing designated
area-ik, as follows:
(1)
Fos' ~kzoning lots-0k, or portzons thereof, that are located

~aihhin
R6.R
R"7D
nr
A'7-Q
ili c+v; r5-n
+tom..
L. ~....
14F1,.,..,,
-. .. -.
ration set rortn in Sec~:Lon l.i-y~1 shill not app.Ly. No

#residential development-0k or ikenlargement# shall be
permitted unless dk~ffordable floor areaik is provided
pursuant to the provi.si.ons of this paragraph. The amount

of iklow-income floor area# provided sha11 equal no less
Yhan 10 percent of the -0kfloor area~4 on such Rzoning lotdk,
excluding any ground floor Iknon-residential floor. arealk,
~kfloor area$ within a 4ischool#, or any $floor areaik
increase resulting Lr.om the provision of a SFRESH food
storeik and the amounh of lkmoderate-income floor area~k
provided sha11 equal no less than 15 percent of the ~kfloor
areaik on such Ikzoning I.otik, excluding any ground floor
4Enon-residential floor area$, ikfloor area~f within a
#school4k, or any 1kfloor area-0k increase resulting from the
provision of a 4kE'RESH food storelk. For the purposes of:
this paragraph (b)(1), inclusive, ~klow income :E:Loor area-0k
may be considered -0kmoderate income floor areadk; and
(2)
(c)
The amount of dkaft-ordab].e floor area-ll utiliz.ing fkpublic

funding -0k thaC may count toward satisfying the ~kaffordable
Floor areaik requ:i.r.ed in paragraph (b)(1) of this Section
sha11. be determined in accordance with procedures
prescribed by the City Planning Commission pursuant to the
provisions o Section 79-793 (Special provisions for bulk
mod.i.fi.cation).
Spec5.a1 provisions for 4kcompensated zoning lot-s~k

Special provisions skull apply to licompensated zoning lotslk
located within:
(1)
R6, R`/-3 and R3 Districts on ~kwaterfront bl.ocks~k in

~kInclusionary Housing designated areas;k within Community
District l., Borough of Brooklyn, as set forth in Section
62-352; or
(2)
the ~kSpecial Hudson Yards Distric~tdk, 4kSpecial Clinton

DistrictR and ~kSperial West. Chelsea Distr:ictlk, as set
forth in Sections 93-L3, 96-21 and 98-26, respecti.ve].y.
(1.0/9/7.3)
23-954
Height and setback or compensated developments in Inclusionary
Aousinq designated areas
In ikInclusionary Housing designated a- reas-0k, the ikcompensated
,deve]ppment~k shalt comply::with -the he-~ht and setbac-k regulations::.-of
Sections 23-633 (SLreet wall location ancitieight and setback
.regulations in certain districts) or' 35-29 (Special Street Wall
Location and Height and Setback Regulations in Certain Districts),
as applicable, except that:

(a)
in ~kSpeci.al Mixed Use Di.str.i.cts~k, the IkcompensaTed devel.opmentlk

shall. comply with the provisions of paragraphs (a) or (b) of
Section 123-662 (All buildings in Special Mixed Use Districts
with R6, R7, R8, R9 and R10 District designations), as
applicable. However, where the Residence Districtlk designation
is an R6 District without a letter suffix, the ~kcompensated
development~p shall comply with the height: and setback
regulations of Section 23-633, regardless of whether the
tkbuildingik is dkdeveloped~ or 4fenla.r.ged# pursi,~ant to the Qua].i.ty
Housing Program;
(b)
in R10 Districts without a letter suEfi.x, the ikcompensated

dc~ielopmenttk shall comply with the underlying height and
setback regulations for such district; and
(c)
on Ikwaterfront blocks$ end in R7-3 Districts, the -0kcompensated

development4k shall comply with the special regulations applying
in the Ikwaterfront areal! set forth in Section 62-30 (SPACIAL
BULK REGULATIONS), inclusive.
(10/9/7.3)
23-955
Additional requirements for compensated developments
(a)
~kCompensated development4k building permits

(1)
1kHPD4k may issue a ikpermit noticeak to the DepartmenC of

Buildings at any time on or after the lkregulatory
agreement dateik. 'Phe Department of Bui:Ldings may
therea:[Cer issue building permits to a ikcornpensated
development4k that utilizes $floor area compensation$ based
on the tfafordabl.e housi.ng~{ described i.n such fkpermit
noYicelf.
(2)
If ~kHPDdk does not receive confirmation that the

#kregulatory ayreementik has been .recorded within 95 days
a .f: ter the later of the ~kregul.atory agreement date it or. the
date upon which tkHPD# authorizes the recording of L- he
dkregulatory agreement-0k, #kHPpdk shall suspend or revoke stack
~kpermit no~tice~k, notify the Department of Buildings of
such suspension or revocation and not reinstate such
tkpermit noticelk or issue any _new ikpexmit notice~k until
-0kHPDik receives confirmation that_ the #regulatory
agreement4k has been recorded. Upon receipt oL notice from
4kHPD# that a Rpermit noticedk has been suspended or
revoked, the Department of Buil.di.ngs shall. suspend or

revoke each building permit issued pursuant to such
~kpermit notice~k which is 'then in effect for any
Ikcompensated developmentlk.
(~)
ifCompensated devel.opment~! certificates of occupancy

(1)
The Department of Sui.ldings shall not issue a temporary or

permanent cert:i.f::icate of occupancy for any porT.ion of the
~kcompensated devel.opmenttk that- utilizes -0kfloor area
compensation~k until $IIPD-0k has issued a 4icomplet.ion notice#
with respect to the 4kaffordable housi.ngtk that generates
such $floor area compensationik. However, where any -0ksto*- ydk
of a dkcompensated development~k contains one or more
Ikaffordable housing unitsik, the DeparCrnenl: of Buildings
may issue any temporary or permanent certificate of
occupancy for such tkstory#k if such temporary or permanent
certificate of occupancy either includes each lkaffordable
housing uni.tlk located in such dkstory~k or only includes
Ikdwelling unil;slk or 4Frooming units~k that ar.e Ikaffordable
housing units-0k. Nothing in the preceding sentence shall be
cJeemed to prohi.bi.t the granting of a temporary or
permanent certificate o:E occupancy for a Ipsuper's unit4k.
(2)
4kHPD# sha17. not issue a #completion notice -0k with respect.

to any portion of any lkgeneraLing sitetk unless:
(i)
the Department of. Buildings has issued temporary or

permanent cer~i.icates of occupancy For all
Ikaffordable housingdk desc.rzbcd in such -0kcompletion
notice~k and such certi.Eicates of occupancy have not
expired, been suspended or been revoked; or
(ii) where a Ikgenerating sit.eik contains fka:ffordable

housing4k that had a vzlid certificate of occupancy on
the $regulatory agreement date4k and no new temporary
or permanent certificate of occupancy is thereafter.
required :for the creation of such IkafLordable
housingdk, dkHPD}k has determined that all renovation
and repair. work required by the applicable
-0kregulatory agreement$ has been completed and all
obligations with respect to the creation of such
#kaLfordable housing~k have been fulfilled in
accordance with Lhe applicable ~iregulatory
ag.r.eementif.
(7/29/09)
23-96
Requirements for Generating Sites
$Affordable housing# in a IkgeneraCing site# shall meet each of the
requirements set forth in this Section for the entire regulatory
period .
(a)
Location of ~kgenerating sitedk and
compensated zoning lot-0k
Where a -0kgenerating situ is not located within the

lkcompensated zoning lot-0k for which it generates floor area
compensation4k:
(1)
the 1{generating si.i=e# and the #kcompensated zoning l.ottk

shall be ].orated within the same Community Di.str.ict; or.
(2)
the ~kgenerating site4k and the ikcompensated zoning lot4k

sha_1 be located in adjacent commw~ity districts and
within one-hal:E mile of each other., measured from the
peri.metex' of each lkzoning lotlk.
However, special. rules f.or the l.ocati.on of. a 4kgeneraYi.ng siteJk

and a I~compensated zoning lot~k apply in Community District :t,
Borough of Brooklyn, where the provisions of paragraph (a)(2)
of this Section shall apply only to adjacent. rommun.ity
districts located in the Borough of Brooklyn; in the #Special
Clinton District4k, pursuant to the provisions ot- Section 96-L1
(Special Regulations for 42nd Street Perimeter A.rea); in the
ikSpecial Downtown Jam~lica District~k, pursuant to the provisions
of Section ].15-211 (Special 7:nclusionary housing regulations);
and in the #kSpecial Southern Hunters Point Distr.ictdk, pursuant
to the provisions of Section 125-?_2 (Newtown Creck
Subdistrict).
(b)
Distribution of dkafL-ordable housing units~k

Tn dknew constr~art:ion af.fo.rdable hous.ingtk or. ~ksubstani:ial
rehabilitation affordable h~usi.ngik, where one or more of the
-0kdwelling units# or tkrooming unitsik in a dkgenerating sitetk,
other than any #super's unitdk, are not ~kaffordable housing
unitsfk:
(1)
the akafforclable housing unitsak shall be distributed on not

less Lhan 65 percent of the ~kresidential stories4k of such
#generating sitefl or, if there are insufficient
IkaFFordable housing unitsJk Lo comply with this
rgquirement, the distribu~_ian-,of ~kaff~rdak~le housa.ng
units~k shall be as specified in the #guidelines#k; and
(2)
not more than one-third of the Hdw~lling unitsik and
~krooming unitsik on any 4kstor.y4k of such ~kgenerating site4k

shall be ~kaffordable housing units#, unless not less than
one-third of the #dwell5.ng units~k and #rooming units~k on
each presidential stor.y~k of such aFgenerating siteJk are
dkaffordable housing unitsdk. However, on a -0kresidential
storydk with fewer. than three #dwelling units$ or tkrooming
units#, only one -0kdwelling unit~k or ikrooming unittk may be
an #affordable housing unit-0k, unless not less than one
tkdwelling unitlk or tkrooming unitdk on each .floor is an
44affordable housing unit~k.
FIowever, IkHPll~k may waive such distribution requirem~nYs for any
knew construction affordable housing$ that is participating in
a Federal, SL- ate or local program where such ~kgenerating sitelk
cannot comply with both the regulations of such Federal., State
or local program and those of this Section. In addition, lkHPD-0k
may waive these requirements for ~ksubst.antial rehabilitation
affordable housing~k, as specified in the Ilguideli.neslk.
(c)
Bedroom mix of ~{aLL'ordabl.e housing units~k

(1)
In iknew constr.ucti.on af.Eordable housinglk and dlsubstantial

rehabilitation affordab:Le housingik, vrhere one o.r more of
the #dwelling units4k i.n a ikgenerat:ing site4k, other than
any Iksuper's unitlk, are not. fkaffordab:Le housing units~k,
either:
(i)
the tkdwel].ing uni.tsl6 i.n the tkgenc~rat:inq situ ghat

are #affordable 1'iousi.ng units~k sha11 contain a
bedroom mix at Least proportiona]. to t:he bedroom mix
of the 9kdwelling unitsdk in the ~fkgenerating si_te4k,
other than any ~ksuper's unitik, that are noC
~kaffordable housing unitslk; or
(ii) not less than 50 percent of the ikdwelli.ng unitslk in

the ~kgenerating site# that ire -0kaffordablc housing
units~k shall contain two or more bedrooms and not
less than %5 percent of the Ikdwelling units4k in the
~kgenerating site# that are affordable housing unitslk
shall contain one or more bedrooms.
However., IfHPDik may waive such distribution requirements
for any $new construction affordable housi.ngik that ei.L- her
is participating in a Federal, State or. local program
where such ~kgenerati_ng site~k cannot comply with both the
regulations of such Federal, State or local program and
those of this Section,_or is located on an 4k~.nterior loL~6
or ikth.rough ].ottk with less than 50 Feet of frontage along
any tkst.reei.~k. In addition, 1kHPD~F may waive these
requirements for ~ksubstantial rehabilitation affordable
housing#, as specified in the -0fguidelines~.
(d)
(2)
Where all of the 4kdwelling units in a generating sheik,

other than any #super's unit4k, in dknew construction
affordable housingtk end itsubstanti.al. rehabilitation
affordable housing#k are ~kafzordable housing units4k, not
less than 50 percent of such ~kaffordable housing units
shall contain two or more bedrooms and not less than 75
percent of such ikaffordable housing units# shall contain
one oz more bedrooms. However, itHPD~ may waive these
requirements Lor any ~kaffordable housingik thaC is
participating in a Federal, State or local program where
such -0kgenerating sitedk cannot comply with both the
regulations of such Federal, StaCe ox local program and
those of this Sech.ion. In addition, #kHPDB may waive 'these
requirements for tfsubsCanti.al rehabi.7.i.tati.on a:Efordable
housing{k, as specified in Che -0kguide].inesdk.
(3)
A11 oL- the -0ksupportive housing units# in a -0kgenerating

site# shal]. be ika:ffordabl.e housing unitsf# and shall
contain such configuration as ~kFIPD~k shall require.
(~1)
For purposes of this paragraph, (c), inclusive, fractions

equal. to or greater than one-half resulting from any
calculation shall be cons5.dered to be one ~kdwelling unit~k.
Size of ~kaffordable housing units-0k

(1)
In #new construction affordable housi.nglk and lksubstairtial

rehabilitation affordable housiny~~, an ~k~ffordable housing
unittk shall contain not less than:
(i)
900 square feet oP ikfloor area~k within L- he perimeter

walls for a zero bedroom 4kdwel:ling unit4k; or
(ii) 575 square feet of Iktloor arealk within the perimeter

walls for a one bedroom #dwelling unitif; or
(iii)7%5 square feet of ;{floor area4k within the pe.rimetcr
walls for a two bedroom akdwelling unit~k; or
(iv) 950 square feet of ~kfloor area4k within the perimeter
wal.l.s for a three bedroom ~kdwelling unitdk.
However, 4kI1PDak may waive such distribution requirements
for any knew construction affordable housingik that is
participating in a Federal, ,State or local program where
such ~kgenerating sitelk cannot comply with both the
regulations of such Federal, State or local program and
those of this Section. In addition, IkHPDIk may wai.vc these
requirements for #substantial rehab.il.itat.ion affordable

housings as specified in the 4kguidelines;k.
(e)
(2)
Where all of the ~kdwelli.ng uni.ts~ in a dkgenerating sitedk,

other than any ~ksuper's unit-0k, in knew constructiondk or
iksubstantial rehabilitation affordable housing$ are
4kaffordable housing units, 4kHPD$ may waive such square
footage r.equi.rements for any fkaffordabl.e housing unitlk
that is participating in a Federal, State or local program
where such generating sitedk cannot comply with bol.h the
regulations of such Federal, State or local program grid
those pf this Section. In addition, ~kHPD$ may waive such
square fooL-age requirements for substantial
rehab:il.i.tation affordable housingik, as specified in the
Itguidelinesdk.
(3)
ihSupportive Yiousing units#k shall comply with the size

rec~u:i.rements specified by ~kIIPD~k.
4kAdministering agent#
(:t)
~kF1PD~k shall approve each ~kadministering agent-0k and may

revoke such approval at any time before or during the
ikregulator.y periocl~k.
(2)
An Hadmir~istering agentik shall be a not-for-profit entity

and shall not bc, or be an affi.].i~te of, an owner or
managing agent of 1=he #generating site#k, unless ~kHPD4k
approves such owner, man~ginq agent or affiliaY.e to serve
as the Ikadm:i.n:isteriny agentik npvn a determination that
either:
(:i)
the Ikaffordable housinglk is parti.c.i.patiny i_n a

Federal, State or local program that provides
adequate independent means of ensuring compliance
with the 4kregulatory agr~ement4k; or
(ii) the oarner and any such managing agent or afti.liate

are not-fo.r-profit entities and there are adequate
safeguards to ensure that such entities comply with
the 4kregt~l.atory agreemenl,4k.
(3)
For a period of time specified in the -0Fguidelinesli, the

~kadministering agent~k shall maintain all records sett:i.ng
forCh the facts that form the basis of any a:Efidavit
submitted to ~kHPll#k. The #administering agent~k shall
ma9.ntain sur.h records, and such other reco.r.ds as fEHPDIk may
require, at the offices of the ~kadm nister ng agen~fk or at
such other location as may be approved by #HPDik. The
-0kadminister.ing agentik shall make such records, and all
facets of the operations of the Ikadm:i.nistering agentlk,

available for inspection and audit by 4kHPD4k upon request.
(f)
RRegulatory agreementik
(:L)
The $regulaCory agreementlk shall. require compliance with

and shall incorporate by reference the ika~fordable housing
plandk and the applicable provisions of this Zoning
Resolution and the IkguidelinesR and shall conta5.n such
additional terms and conditions as dfHPD-0k deems necessary.
(2)
The ~kregulatory ag.reement4k shall require that atHPDik be

provided with documentation indicating the amount of
~kaffordable floor areaik. For. aknew construction affordable
hous:Lng~k or lksubstantial rehabilitaL- ion affordable
housing~k, such documentation shall include, but shall not
be limited to, plans meeting the requirements of Section
23-99, paragraph (c).
(3)
The -0kregulatory agreement# shall be recorded against all

tax lots compri.si.ng the portion of the ikzoning lot4k within
which the 4fgenerating site~k is located and shall. set Forth
the obligations, running wiY.h such tax lots, of the owner
and ai.l. successors in interest to provide ikaffordable
housing~k in accordance with the Ikaffordab].e housing planik
for the entire ~kregulatory period4k.
(4)
$Affordable housingik may serve to secure debt caith the

prior approval of dkI-IPD#. Any lien securing such debt shall
be subordinated to the ~kregulatory agreementdk.
(5)
The kreyulatory agreement$ may, but shall not be required

to, provide that such ikregulatory agreement~k may be
terminated prior Lo the issuance of a tempo.r.ary or
permanent certificate of occupancy for any #kcompensated
development$ by the Department of Buildings.
(6)
Where all of the 4kdwe1ling units$, ~krooming unitslp or

aksupportive housing units#k in a 16generatirig si~te~k, other
than any 4ksuper's unitlk, are ~kaffordable housing unitsdk,
the 4kregulatory agreementik sha11 provide that, following a
defau:L~ and any applicable opportunity to cure, fkHPD~k may,
in addition to any other remedies provided therein or by
applicable law:
(i)
appoint a receiver to manage such -0kgenerating sitelk;

or
(ii) 'take control of the board of direcL- ors of any housing

development Fund company or not-for-profit
corporation that owns, controls or operates such

dkgenerat.ing site#.
(7)
(g)
WYiere applicable in accordance with paragraph (b),

(Monthly rent), of Section 23-961, the -0kregulator.y
agreement# shall provide that cerL-ain obligations shall
survive the #regulatory perioddk.
Housing standards
Upon the date that tkHPDtk issues the ikcompletion noticeik, the
4kgenerating siteik shall be entirely free of violations of
.record issued by any City or State agency pursuant Yo the
Multiple Dwelling Law, the I3uil.ding Code, the Housing
Maintenance Code and this Toning Resolution, except as may be
otherwise provided in the ~kguidelinesdk orith respect to nonhazardous violations in occupied ikaffordable hous:i.ng units~k of
#preservation affordable housing4k or 4ksubstantial
rehahi.litation affordable housing#.
(h)
Insurance
The ~6affordable housing#k in a dkgenerating s:ite#k sha1.1 at all
times be insured against any damage or destruction in an amount
not less than the replacement value of such $affordable
housinglk. Any insurance proceeds resulting L-rom damage or
destruction of all or part of the #g~nerati.ng sitedi containing
such Ikaffordable housingik shall. be used f.i.rst to restore any
damaged or destroyed ikaffordable housingik, except that 4kHPD-0k
may provide priority :Epr lenders pa.r.ticipat:i.ny in the financing
of dkaffordable housingdp that is assisted under City, State or
'ederal p.rog.rams.
(i.)
Duration of obligations
The obligation to provide and mai.ntai.n a specified amount of
~kaffordable housinglk on a akgenerating site# sha11 run w:Lth the
4kzoning lotlk containing such ~kgenerating site# for not less
than the 4kregulatory period$. If any portion of such
dkaf:[ordable housing~k is damaged or destroyed, no 4kfloor area-0k
shall be 4kdeveloped#, reconstructed or repaired nn such 4kzoni.ng
l.otlk, and no ~kdevelopmerit#, dkenlargement4k, extension or change
of -0kuse# shall occur on such #zoning lotlk, unless
(1)
the amow7t of such ik:Eloor area~k devoted to dka:Efordable

housing~~ is not less than the tkfloor area# of the
#affordable housinglk that was damaged or destroyed; or
(2)
100 percent of such #developeddk, reconstructed or repaired

ikfloor area~k is tkaffordable housingtk.
(j)
One generating site~k may satisfy requirements for multiple

compensated zoning lotsip
Any 8generating sitedk may contain dkaffordable housingit that
satisfies the requirements of Section 23-90, inclus.i.ve, for
more than one -0kcompensated development-0k, provided ghat no
dkaffordable floor area# shall be counted more than once in
detcrminin~ the amount of ~kfloor area compensationik For such
-0kcompensated developments$.
(k)
IkGuidelineslk
~HPD# shall adopt and may modify dkguidelines~ for. the
implementation of the provisions of Section 23-90, inclusive.
(7/?_9/09)
23-961
Additional requirements for rental affordable housing
The additional requirements of this Section shall apply to rental.
#kaf~ordabl.~ housingik on a 4kgeneratin~ site#k for the entire
akregulatory period46.
(a)
Tenant selection
(1)
Upon lkrent-up4k and any subsequent vacancy for the entire

4kregulator.y period~k, -0kaffordable housing units-01 shall only
be leased to and occupied by ~{low income householdstk,
~kmoderate income households~k and dkmiddle income
househol.ds~k, as applicable. No lease or. sublease of an
itaffordable housing unit~k shall be execuCed, and no tenant
or subtenant shall commence occupancy of an lkaf.fordable
housi.nq unit#, without the prior approval of t:he
#kadministering agent~k.
(2)
A tenant may, with the prior approval of the

ifadministering agent#k, sublet an Ik~ffordable housing unitfk
for not more than a total of two years, including the term
of the proposed sublease, out o:E the four-year period
preceding the termination date ot- the proposed sublease.
The aggregate payments made by any sublessee in any
calendar month shall not exceed the ikmonthly rent~k that
could be charged to the sublessor in accordance
_with the
_
__
#regulatory agreement~k
(3)
A 4klow income household~k may rent an #affordable housing
unit# that is r.estr.i.cted to occupancy by dYmoderate .i.ncomedk

or middle income households~k, provided that the
#administeri.ng agents determines that such $low income
househol.dlk is able to utilize rent. subsidies pursuant to
Section 8 of the United Stales Housing Act of 1937, as
amended, to afford the applicable #monthly rentik.
(b)
Monthly rent
(1)
The 4kregulatory agreement-0t shall provide that each

#aff.ordable housing uniCtk shall be registered with the
Di.visi.on of Housing and Community Renewal at the initial
~mon~hly rents established by $HPDdk within 60 days
following the ~krent-up dated and shall thereafter remain
subject to Ikrent stabi].i-r.ationll for the entire ~kregulatory
period~k and thereafter until ~~zcancy. However, the
~kregulator.y agreement$ may permit an alternative date by
which any Ikaffordable housing unitsik that are vacant on
the ikrent-up dateik shall be registered with the Division
of Housing and Community Kenewal at the initial. ikmonthly
rent# established by 1kHPDdf.
(i)
Howeve.r, arty ~Faffordable housing unitlk of

~kpreservation affordable housing# or -0ksubstantial
rehabilitation affordable housing$ that is k~oth
occupied by a ~kgrandfathered tenant#k and subject to
the Emergency Housing Rent Control Law on the
Ilregulatory agreement datefk shall remain subject to
the emergency Housing Rent Control Law until the
first vacancy following the 4kregulatory agreement
date-0k and shall thereafter be subject to #rent
stak~i.l.ization~k as provided herein.
(ii) The #regulatory agreementdi shall provide that upon

each annual registration of an ~kafFordable housing
unitdk with the Division of Housing and Community
Renewal, 'the -0klegal regulated rentdk for such
tkaffordable housing unit~k shall be registered with
the Division of Housing and Commu!iity Renewal at an
amount, not exceeding the dkmaximum monthly rentdk.
However', the lkregulatory agreement~k shall provide
that th:i.s requirement steal]. not apply to an
dkaffordable housing un.it~k occupied by
#grandfathered tenant$ until the first vacancy after
the ~kregulatory agreement date#k.
(2)
The ~kregulatory_agreement~k shalt provide that the ikmonthly

rent~k charged to the tenant of any Ikaffordable housing
unit~k at ~kinitial occupancy~k and in each subsequent
renewal lease shall not exceed the lesser o:E the $maximum
monthly rent4k or the ~ktegal regulated rent~k. However, the

$regulatory agreement4k shall provide that these
requirements shall not apply to an Ik~ffordable housing
unity occupied by a -0kgrandfathered tenant9k, until the
first vacancy after the dkregulaY.ory agreement date~k.
(3)
Within 60 days following the #rent-up date$, the

~kadmini.stering agent#k sha11 submit an affidavit to 4kHPD~k
attesting that the I{monthly rentik .registered and charged
For each ~kaifordab].e housing unit~k complied with the
applicable #kmonthly rentdk requirements at the t.i.me of
Ikiniti~l occupancy~k.
(9)
Lach year after Ikrent-updk, in the month speci.f.ied i.n 'the

~lregulaLor.y agreement~k or the Ilguidelines4{, the
lkadministering agent-0k sha11 submit an affidavit to 4kfIPD4k
attesting that each lease or. sublease of an ~kaffordable
housing u~it~k or renewal thereon during the preceding year
complied with the applicab:Le Ikmonthly rent4k requirements
at the time of execution of. the lease or suk~lease or
renewal thereof.
(5)
The lkregulatory agreement# shall provide that the lessor

of an 4kaffordable housing unit4k shall not utilize any
exemption or exclusion from any ,requirement of Ikrerit
stabi.lization~k to which such lessor might otherwise be or
become entitled with respect to such 4kaffordable housing
unitik, inc7.uding, but not limited L-o, any exemption or
exclusion From the rent limits, renewal lease
requirements, registration requirements, ~r other
provisions o:f Ikrent stabilizationik, due to:
(i)
k.he vacancy of a unit orhere the dklegal regulated

rentl6 exceeds a prescribed maximum amount;
(ii) the fact that tenant income or the 4klegal regulated

rent~k exceeds prescribed maximum amounts;
(i.ii)the nature of the tenant; or
(iv) any other reason.
(6)
The dkregul~tory agreement-0k and each 1e~se of an

4iaFfordable housing unit~k shall contractually require the
lessor of each ~kaffordable housing unitdk to grant all
l:enants the same rigtrts that they would be entitled to
under -0krent stabilizationd6 without regard to whether. such
dkafPordab7.e housing un3.t16 is statutorily subject to ~krent
stabilization~k. If any court declares that 4krent
stabilizationik is statutorily inapplicable to an
taffordab].e housing unitdk, such contractual rights shall

thereafter continue in effect for the remainder. of: the
#regulatory period#.
(7)
(c)
(d)
The lkregulatory agreement~k shall. provide that each

dkaffordable housing unitik that i.s occupied by a tenant at
the end of the ~kregul.atcry peri.od4k shall thereafter remain
subjecT to -0trent stabil.ization~ for not less than the
period of time that such tenant continues to occupy such
#affordable housing unitik, except that any occupied
-0kaffordable housing unit# tlia~ is subject to the Emergency
Housing Rent Control Law at the end of the dkregulatory
period# shall remain subject to the F,mergency Housing Rent
Control Law until the first vacancy.
Income
(7.)
Fach affordable housing unity shall be leased to and

occupied by t11ow income households#, moderate income
householdslk or lkmid~le income households4k, as applicable,
for the entire ~kregulatory periodlp.
(2)
The 1{administering ag~ntlf shall verify the ~khousehold-0k

income of the proposed tenant prior to leasing any vacant
-0kaffordable housing unit~k in order to ensure that it is a
~klow income householdlk, ~kmoclerate income householddk or
4kmiddle income householddk, as applicable.
(3)
Within 60 days Following the dkrent-up date~k, The

;kadministering agenttk sha:tl submit an affidavit to #HPDlk
attesting that each #khousehol.d4k occupying an 4kaffordable
housing unitlt comp l.i.ed with the applicable income
eligibility requirements at Che time of 4kinitial
occupancyik.
(4)
Each year after #krent-up~k, in the monCh specified i_n the

dkregulatory agreement4k or the ~kguidelines~k, the
Ikadministering agent~k shall submit. an affidavit. to $HPD1~
attesting 'that each ~khouselioldlk that. commenced occupancy
of a vacant ~kaffordable housing unittk during the preceding
year, and each ikhouseholdik that subleased an -0kaffordable
housing unitdk during the preceding year, complied with the
applicab.l.e income el.igibili_ty requirements at the time of
apinitial occupancylk.
IkAffordable housing p].anik

(1)
An`-0iaffordable housing"plank shall designa'Ee the initial`

dkadminister.ing agent#, include the agreement with the
initial #administering agentR, state how 1ladministe.ring
agentsR may be removed, sCate how a new 4kadministering

agent# may be selected upon the removal. or other departure
of any ~kadm;inistering agent~l, include the building plans,
state the number and bedroom mix of the affordable
housing unitslk to be Ikdevelopedlk, rehabilitated or
preserved, indicate how tenants Drill be selected at 4krentup4k and upon each subsequent vacancy of an dkaf.f.ordable
housing unitll, indicate how the ~khouseholdlf income of each
prospective tenant will be verified prior to such
dkhouseholdtk's dkinitS.al. occupancydk of an ~kaffor.dable
housing unitlk and include such additional information as
dkHPD4k czeems necessary.
(2)
An ~taftordable housing plan -0k sha11 demonstrate the

Feasibility of creating and maintaining #kaffor.dable
housing{ i.n accordance with Section 23-90 (INCL~USIONARY
HOUSING), inclusive, including that:
(i)
there wi7.1 be sufficient revenue to provide f.or

adequate maintenance, operation and administration of
the 4~af~tordable housi.ngik;
(ii) ~kaffordable housing units~k will be ].eased to eligible

ifhouseholdslk by a responsible ikadmini.stering agent;
at fkrent-up# and upon each subsequent vacancy; and
(iii)tenants will. be selected in an equitab:Le mannEr in
accordance with laws prohibiting discrimination and
all other applicable 1z1ws.
(3)
A copy of any proposed lkaffordable housing planik shall be

delivered to the affected Community Board, which may
review such proposal and submit comments to ikHPD1k. 4kHPD-0k
shall not approve a proposed 4kaffordable housing plandk
until the earlier of:
(i)
the date that the affected Community Board submits

comments regarding such proposal to ~kHPD~k cr .informs
#HPDik that such Community Board has no comments; or
(ii) 95 days from the date that such proposal was

submitted to the affected Communa.Y.y Board.
(e)
Special requirements for rental ikpreservation affordable

housing$
The add:i.tional requirements of this paragraph (e), shall apply
to rental. f~pre'servat on affordable housing#k:
(7.)
all of the ikdwel].ing uni.ts~k, lkrooming unitsak ~nc3
supportive housing unitslk in the dkgenerati.ng sitetk, other

than any {ksuper's unilik, shall he -0kaLfordable housing
units#k that are leased to and occupied by 4klow income
households for the entire ~kregulatory perioddk;
(f)
(2)
on the 4kregulatory agreement date~k, the average of the

Iklegal regulated rentstk for. all. #affordable housing unitsdk
in the 4kgenerating si.te~k that arE occupied by
lkgrandfai:hered tenants-0k sha11 not exceed 30 percent of the
~61ow income limitik divided by 12;
(3)
on the dkregulatory agreement date~k, ~kHPD~k sha11 have

detcrmi.ned that the condition of the ikgenerating site# is
sufficient, or. will be sufficient after required
improvements specified :i.n the #affordable housing p1a=19k
and the lkregulatory agreementlk, to ensure that, with
normal maintenance and normal scheduled replacement of
dkcapi.tal. elements#k, the ~kaEfordable housing unitslk wi.:l.l
provide a decent, safe and sanitary living environment for
'the entire Ikregulatory period~p;
(4)
on the ~kregu].atory agreement date4k, IfHPDit sha17. have

determined either that no ~kcapi.tal el.ementlk :i_s likely to
require replacement within 30 years from the tkr.egulatory
agreement date-0~ or that, with regard to any ifrapital
element~k that is likely to require replacement within 30
years from the ilregulatory agreement dateik, a sufficient
reserve has been established to Fully fund the replacement
of such I{capital. element~k:
(5)
except with the prior approval of ~ktlPDik, tkmonth].y rentsak

charged for Ikaffordabl.e housa.ng units~k shall not be
increased to reflect the costs of any repair, renovation,
rehabilit~Cion or improvement performed in connection w5.th
qualification as a i{generating s.it.elk, even though such
increases may be permitted by other laws; and
(6)
such Ilaffordable housinyfk shall comply with such

additional criteria as may be specified by #HPD~k in the
4kguidelinesdk.
Special requ=.r.ements For rental ~ksubstantial rehabilitation

affordable housi.nglk
The additional requirements of this paragraph, (t), shall apply
to rental ~ksubstantial rehabilitation affordable housingik:
(1)
such tkaffordable housi.ngN shall be crezted through the

rehabilitation of a dkgenerati.nq site$ at a cost per
completed #affordable housing unit-0f that exceeds a minimum
threshold set by #IIPD-0k in the ~gui.de].ineslk;

(2)
on the ~kregulatory agreement date~k, the average of the

~klegal regulated rentslk for. all ~kaEfordable housing units$
in the 4kgenerating site~tk tha~C are occupied by
~kgrandfathered tenants~k shall not exceed 30 percent of. the
~klow income l.imittk divided by 12;
(3)
on the ~kregulatory agreement datedk, -0kHPD~k shall have

determined that the condition of such $generating site~k is
sufficient, or will be sufficient after required
improvements specified .in Y_he ikaffordabl.e hous5.ng plank
and the Ikregulatory agreement~k, to ensure that, with
normal maintenance and normal scYieduled replacement of
~kcapita]. elementsik, the Ikaffordabl.e housing un:its~k will
provide a decent, safe and sanitary living environment for
the entire ~kregulato.ry period~k;
(9)
on the -0kregulatory agreement date~k, ~kFIPD-0k sha11 have

determined either that no akcapital element~k is likely to
require repl.acem~nt within 30 years from the tkregulatory
agreement date4k or that, with regard t:o any #kcapital
element# that S.s li.kel.y 10 require replacement within 30
years from the 4kregulatory agreement date#, a sufficient
.reserve has been established to ful.l.y fund the replacement
of such Ikcapital elemenL- 1k;
(5)
except with the prior. approval of IkHPDdk, #kmonthly rentslk

charged for tkaffordable housing uniCsal sha11 not be
increased to reflect the costs of any repair, renovation,
rehabilitation or improvement performed in connection with
qualification as a ikgene.ratiny site~k, even though such
increases may be permitted by other laws; and
(6)
such lkaffordable hous:i.ngih shat.l comply with such

addiCional criteria as may be specified by d6HPD4k in the
4kgu:Ldelines-0k .
(4/6/11)
23-962
Additional requirements or homeownership affordable housing
The additional requirements of this Section sha11 apply to
ikhomeownersh p affordable housuig-0{ on a#kgeneraLing site~k fir the :,.
entire Ikregulatory per:iod4k.
(a)
Homeowner selection
(b)
(1)
Upon dksale#, homeownership affordable housi.nq units -0k

shall only be occupied by 4keligible buyers~l that are ~klow
income households4k, dkmoderate income households# and
~kmiddle income householdsdk, as appl.i.cable. Upon any
subsequcnL #kresale4k for the entire ~kregulatory periodtk,
#homeownership affordable housing units shal]. be sold to
and occupied by ikeligible buyers96 at or below the ikmaximum
resale pricek on the 4ksale dateak, as applicable. Dlo
dkhomeownersh.ip affordable housing uniY~k shall be sold to
or occupied by any -0khouseholdlk or any other person without
the prior approval o:E the -0kadministering agent-0k.
(2)
A ~khomeownerik may, with the prior approval of the

IkadminisLering agent4k, sublet an ~khomeownershi.p affordable
housing unitlk to another. #low income househo].dik, 16moderate
income houseYiold~k, fkmiddle income household#k, or. ~kel.igibl.c
buyer~l, as applicable, for not more than a total of two
years, including the term of the proposed sublease, out of
the four-year period preceding the termi.i~ation date of the
proposed sublease. The aggregate payments made by any
sublessee i.n any calendar month sha11. not exceed the
combined cost of Ikmonthly fees4k, ~kmortgage payments~6,
util.iti~s and property taxes paid by the sublessor.
(:3)
~ 4khomeownerlk shall reside in the 1lhomeownership

affordable housing unitlk, except as prpvi.ded in paragraph
(a)(2) of this Section.
(9)
The restrictions in this paragraph, (a), on the ownership

of ~khomeownership affordable housing units~k shall not
prevent the exercise of a valid lien by a 11mor.tgage#
lender., tkcooperative corpor.ationik, fkcondominium
association#k or any other entity authorized by the
ikregulatory agreementdl to take possession of a
~khomeowner.ship affordable housing uni.tlk in the event of.
default by the dkhomeowner~k. Plowever, any 4psale# or
Ikresale#k by such lien holder sha11 be to an ~keligibl~
buyerik, in accordance with this paragraph, (a), and the
4kguidelineslk.
Priee
(7.)
The ~kini.tial pricefk or ikmaximum resale pricelk of any

dkhomeownership affordable housing unit-0i shall be set
assuming a {kmortgage#k, as defined in Section 23-913
(Definitions applying to homeownership generating sites).
(2)
The ~kregulatory agreement~k shall establish the dkiniti.al

pr.i.c~dt :Eor each ikhomeowne.rship aFfordabl.e housing unit~k.
-0kHPD# shall set the #initial priceB to ensure that the

combined cost of dkmonthly fees, lkmor.tgage paymentsH,
utilities and property taxes to be paid directly by the
~homeocrner4i will not exceed 30 percent of the fklow income
i..imit~k, ~ikmoderate income limitdk or. 4pmiddle income l.i.mit~k,
as applicable.
(c)
(d)
(3)
Prior to any Ikresaleik of a ikhomeovmership affordable

housing unit~k, the lkadministering agent-0k shall set the
-0Imaximum resale pr.ice4k for such Rhomeocanershi.p affordable
housing unit4k.
(4)
The ~tkadmini.stering agentd! sha11 not approve any dkresale~k

unless the selected dkeligible buyer-0k provides a -0kdown
paymentlk, as specified in the -0kguidelinestk.
(5)
~ 4khomeownership affordable housing unit -0k, or any shares

in a cooperative corporation~k appurtenant thereto, shall.
not secure any debt unless such debt is a dkmortgage# that
has been approved by the lkadministering agentld.
Income
(].)
The ikadmin.ister.~i.ng aget~tak sYlall. verify the ~khousehpld~k

income of a proposed #khomeowner~k, in accordance with the
#kguidel.inestk, prior to the ~ksale datelk of any
fPhomeownership affordable housing unitlk in order to ensure
that, upon #sale#, it is a $low income householdtk,
~tkmoderate income household-0k or -0kmiddle income household4k,
as applicable, and that upon ~kresale~k, it is to an
#eligible buyer4k.
(2)
'Che fkadministcring agenl::lk shall meet reporting

requirements on each 4ksaleik and $resale~k, as set forth in
the ~kguidelineslk.
(3)
Pach year after the -0~commencement date4k, in ttie month

specified in the 4kregulatory agreement# or the
Ikguidelinesik, the Ikadministering agentdk shall submit an
affidavit to dkHPD# attesting that each #resalc~k of a
-0khomeownership affordable housing unitlk during the
preceding year complied with all applicable requirements
on the ~kresale date~k.
1kAfford~ble housing plan4k

('L)
An lkaffordable housing pLanik shall include the building_.

plans, state the number and bedroom mix of the
4khomeownership affordable housing units# to be
lkdevel.opedtk, rehabilitated or. preserved, i.ndi.cate how
4~homeowners# will be selected upon each iksale~ or ~kresalelk

of a akhomeownership affordable housing unitik, indicate how
the Ilhouseholdlk income of dkeligible buyerslk will be
verified prior to such 4khousehold's initial occupancy~k of
a ~khomeownership affordable housing uniL- 1k and include such
additional information as fkHPD4k deems necessary.
(2)
An #affordable housing planlf shall demonstrate tYle

feasibility of creating and maintaining #homeownership
affordable housing, including that:
(i)
there will be sufficient revenue to provide for

adequate maintenance, operation and adm.inist.ration of
the ikaffordable hou:>ing8;
(ii.) #kaffordab].e housing uni.tslf will. be sold under the

supervisi.en of a responsible 4kadministering agentdt to
#eligible buyers~k at each ~sale~k and 1kr.esale-0k; and
(iii)-0khomeownerslk will be selected in an equitable manner
in accordance with laws prohibiting discrimination
and a].l other applicable laws.
(3)
The requirements of Section 23-901, paragraph (d)(3),

shall apply.
(e) Flous.ing standards

The requirements of Section 23-96, paragraph (g), shall apply.
In addition, each ~khomeownerak shall be obligated to maintain
each ikl~omeownership affordable housing unit$ in accordance with
minimum quality standards set forth in the $gu.idel.ineslk. Prior
to any ~kresal.e4k, IkHPD~{, or its designee as specified in the
ikguidel:Lnes~k, shall inspect the ~kaffordable housing unit4k and
shall either require the #homeowner46 to remedy any condition
that violates such minimum quality standards before the $sale
dateik, or require the retention of a portion of the Ikresale8
proceeds to pay the cost of remedying such condition.
(f)
Optional provisions for certain knew construction homeownership

affordable housing -0k
In Community District 3, Borough of Manhattan, tkHPD-0k may modify
the requirements for -0knew construction homeownership affordable
housi.ngik to facilitate ikdevelopm~nttk on a site L-hat has been
disposed of pursuant to Article 16 of the Genera]. Municipal I~aiv
as set forth i.n Lhis paragraph (f), inclusive.
(1)
#HPD4k may permit a ~khouseholdlk to occupy a dknew

construction homeown~.r.ship aFfordable housing unitdk as
rental
(i)
affordable housings i:E:
no more than 120 days prior to the dkregu7.atory

agreement datedk, such ~khousehold4k occupied a
~kdwelling un:i.tik or #rooming unit~k i.n a 4kbui.ldinglk
located on the #zonirg lot~k of such knew construction
homeownership affordable housing -0k, pursuant to a
lease or occupancy agreement to which one o:r more
members of such ~khousehold4k was a party or pursuant
to a statutory tenancy;
(ii) no more than 1?_0 days prior to the ~6regulatory

agreement da~efk, the average .rent f.o.r. all occupied
~idwelling unitsik or ~krooming units -0k in such
~6building~k did not exceed 30 percent of the ~kl.ew
income li.mitfk d.ivi.d~d by 12; and
(iii) after the ~kregu].atory agreement dated, such
4kbuildinq# is demolished and replaced with iknew
constr.ucL- ion homeownership affordable housing~k.
(Z)
4kHPDfk may permit a ~khousehold4k that is not an tkeligiblc buyer4p,

beat that meets the requirements of paragraph (f)(1) of this
Section, to purchase a 4knew construction homeowner hip
affordable housing unit -0k at 4ksale-0k, provided that such
#househol.dfk is a dklow income household4k, 4pmoderate income
householdlf or 4kmiddlF income householdlk, as applicable.
Where a tkiiew constr.ucti.on homeownership affordab:Le housing
uniC~# is purchased at a nominal price, the -0kappreciated pxice#
for such ~khomeownership affordable housing unit~k sha17, be the
product of the ~ki.ni.tial price#k of such lkhomeownership
affordable housing unit$ and the ~izippreciation indexfk
applicable at 4k.resalelk as specified in the ~kguidelinesik.
(g)
Special requirements for Ikhomeownership preservation affordable

housing~k
The additional requirements in this paragraph, (f), shall apply
to ikhomeownership preservation a:Efordable housing~k:
(1)
on the #regulatory agreement date4k, the ~kgenerating sites

shall be an existing dkbuilding4k containing dkresidences-0k;
(2)
on the ~kregulatory agreement date~k, the average of the

~klegal regulated rents~k, as such term is defined in
Section 23-912, For zll Ikhomeownership aFPordable housing
unitst~ lfi the -ik~~eneratng sitelk that are occupied by
4kgrandfathered tenantsdk shall not exceed 30 percent of the
~klow income limit-0k divided by 12;
(h)
(3)
where #grandfathered tenantsfk continue in residence

subsequent to the dkregulatory agreement date~t, any
4kaffordable housing nnitfk that i.s occupied by a
~kgrandfathered tenantdk shall be operated subject to the
restrictions of Section 23-961 (Additional requ.irem~nts
for rental affordable housing) until such ~kaffordable
housing unitik is purchased and occupied by an ~keligible
buyer$;
(9)
on the -0kregulatory agreement date~k, -0kHPDdi shall have

determined that the condition of the lkgenerating si.teit i.s
sufficient, or will be sufficient after required
.improvements specified in the ~kaffordable housing planik
and the -0kregulator.y agreement~k, to ensure that, w.i.th
4kcapital elements4k, the -0kaffordabl.e housing units-0k will
provide a decent, safe and sanitary living environment 'For
the entire 4kregul~tory periods;
(5)
on the ~tregulatory agreement dale-0k, IkHPD~k shall have

determined either 'that no f~capital element;k is likely to
require replacement- within 30 years :[r.om the ikregulatory
agreement datedk or that, with regard to any ~kcapital.
elementdf that is likely Y.o requi.re rEplacement LJ1tYl:l.11 30
years from the Ikregulatory agreement ciaL-e9k, a sufficient
reserve has been established to fully fund the replacement
of such ~kcapital elementtk; and
(6)
such 9kaffordable housing# shall comply with such

additional cri.ter.ia as may be specified by fkHPD-0F in the
~kguideli.nesik .
Special .requirements for #khomeownership subsl-antial

rehabil.i.i:ation affordable housingdk
The addiCional requirements in this paragraph, (g), shall apply
to ~khomeownership substantial rehabilitation af:fo.rdabl.e
housing~k:
(1)
on the dkregulatory agreement datelk, the Iigener.ating site46

shall be an existing dkbuilding#k;
(2)
such 4kaffordable housingll sha7.:l. be created through the

rehabilitation of such existing 4kbuilding-0t at a cost per
completed ~khomeownership affordable housing unitlk that
exceeds a minimum threshold :>et by $HPD-0k in the
lkguidelineslYt
(3)
on the dkregulatory agreement date~k, tYie average of the
lklegal regulated rents#k for all 4khomeownership affordable

housing units~k in the #kgenerating siteik that are occupied
by ikgrandfathered tenants~k sha11 not exceed 30 percent of
Che #low income limit# divided by 12;
(9)
where ~grandfztthered tenants continue i.n residence

subsequent to the Sregulatory agreement date$, any
~kaffordable housing unitlk that is occupied by a
lkgrandLathered tenants shall be operated subject to the
restrictions of Section 23-961 until such dkaffordable
housing unit -0f is purchased and occupied by an ~keligible
buyer#;
(5)
on the fkregulaCory agreement datelk, #HPU~k shall. have

determined that the condition of such -0kgenerating site4k is
sufficient, or will. be sufficient after requi..red
improvements specified in the ikaffordable housing plani~
and the 4kregulatory agreementlk, to ensure that, with
#capital elemenL- sfk, the ~kaffordable hous:i.ng unitslk wi.l.l
pr.ovi,de a decent, safe and sanitary 1iv:ing environment for
the entire 4kregulatory period#;
(6)
on the Ik.regul.atory agreement datelk, IkHPD4k sha11. have

determined either that no 4kcapital element4k is likely Lo
require replacement within 30 years from the ~pregulatory
agreement datel! or that, with regard t.o any lkcapita:L
c:lement~k that is likely to require replacement within 30
years from the dkregulatory agreement date~k, a suf.fici-ent
reserve has been established to fully fund the replacement;
of sucYi #capital element4k; and
('7)
such ifafford~ble housing~k sha].1 comply o~ith such

additional criteria as may be specified by 1kFIPD# in the
akguideliii~s~i.
DOCUMUENT 14
IH REGULATORY AGREEMENT (SAMPLE WITH
THE CITY OF NEW YORK THROUGH ITS
DEPARTMENT OF HOUSING PRESERVATION
AND DEVELOPMENT
-14-
Execution Copy
(H Agreement -RIO aid Designated Areas
AGREEMENT made th's 30'" d
fD
m er, 2013, between~a corporation formed pursuant to Article

XI of the Private Housing Finance Law and Section 402 of the Not-For-Profit Corporation Law,
having an office at
~
(the
New York, having an office at
"Applicant"), and the City of New York (the "City"), a municipal corporation acting by and
through its DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT (the
"Department"), having an office at 100 Gold Street, Ninth Floor, New York, NY 10038.
~~
WHEREAS, pursuant to that certain Declaration of Interest and Nominee Agreement

dated as of September 16, 2003 and recorded on October 15, 2013 as CRFN 2013000425720
in the Office of the City Register, County of New York (the "City Register"), as amended
pursuant to that certain Amended and Restated Declaration dated of even date herewith and to
be recorded, upon execution, in the City Register, Applicant is the beneficial owner and the
~is the legal owner of the premises located in the County of New York, City and State of
New York, known as and by the street address
on the Tax Map of the City (as Improved pursuant to this Regulatory Agreement)(the
"Premises'), more particularly described in Exhibit A attached hereto and made a part hereof,
and intends to construct improvements on such Premises, which improvements will constitute
Affordable Housing within the meaning of Section 23-911 of the New York City Zoning
Resolution (the "Resolution") and the Inclusionary Housing Program Guidelines (the
"Guidelines")(the Guidelines and Resolution are, collectively, referred to as the "Program"); and
WHEREAS, the Department has been duly authorized to administer the Program,
including the execution of a Regulatory Agreement between the Department and Applicant and
~for Floor Area Compensation under the Program (the "Agreement'); and
WHEREAS, Applicant and _have filed with the Department an Affordable Housing
Plan pursuant to Section 23-961(d) of the Resolution, attached hereto and made a part hereof
as xhibit B (the "Plan"), and the Department has evaluated and approved the Plan as such
terms and requirements of the Plan are reflected in this Agreement; and
WHEREAS, Applicant and IIi/intend to provide Low Income Floor Area (as defined
in Section 23-911 of the Resolution (the "Affordable Housing Units") to be affordable to and
occupied by families having incomes less than or equal to the Low Income Limit in order to
enable one or more new multiple dwellings (the "Compensated Developments)"), to be eligible
under the Program for Floor Area Compensation pursuant to Section 23-951 (R10) of the
Resolution; and
WHEREAS, the parties hereto wish to enter into this Agreement to set forth the rights
and obligations hereunder;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein.
contained, it is hereby agreed as follows:
Ili ~grernient IilO;md Uesign;ucd r\real
li.~ecution Copy
1.
Capitalized terms not specifically defined herein shall have the meaning set forth in the
Program.
2,
Applicant and twill create, through new construction seventeen (17) Affordable
Housing Units pursuant to the building plans submitted to and approved by the Department (the
"Building Plans"), located at the Premises (the "Building").
3.
The seventeen (17) Affordable Housing Units will be occupied by Low Income
Households, as defined in the Resolution which will permit Floor Area Compensation in
conformance with the Resolution.
A.
The authority pursuant to the Resolution to create additional Floor Area in Compensated
Development(s), granted in accordance with this Agreement, may be transferred by Applicant or
by whomever Applicant directs the Department, in writing, to receive such transfer authority,
subject to the geographic and zoning limitations set forth in the Resolution and subject to the
requirements of the Program.
5.
The parties hereto agree that the site of the subject Affordable Nousing Units is eligible
for the construction of Low Income Floor Area pursuant to the Program and the requirements of
Sections 23-90 (Inclusionary Housing), inclusive of the Resolution and based on an opinion of
counsel, the site meets the requirements of Section 577 of the Private Housing Finance Law
("Article XI Exemption"). The parties also agree that Applicant and _shall complete the
subject Affordable Housing Units application for an Article XI Exemption, unless the Department
has waived, in writing, the necessity for such exemption. The parties hereto further agree that
(a) Applicant and _shall not permit the Building Plans to be professionally self-certified to
the City of New York Department of Buildings ("DOB") and (b} Applicant andshall submit
such Building Plans to a DOB plan examiner for review, and (c) applicable zoning calculations
also shall be approved by a DOB plan examiner, and (d) construction of Affordable Housing
Units, as described in the request, is in accordance with the Guidelines, the Departments
design guidelines and construction guidelines issued in conjunction with such design guidelines,
and with the Building Plans, (which design and construction guidelines and Building Plans are,
collectively, defined as "Construction Requirements").
Applicant and_ shall complete the construction of the Affordable Housing Units within
three (3) years from the date of this Agreement (the "Completion Deadline"). The construction
of the Affordable Housing Units shall be deemed complete upon the Departments issuance, for
presentation to the DOB, of a Certificate of Completion of Affordable Housing Units in
accordance with Section 9 of this Agreement ("Completion"). The parties further agree that the
neither size nor configuration of the Affordable Housing Units shall ba modified in any manner
without the prior written approval of the Department.
This Agreement is subject to the Applicant's and _compliance with the
G.
requirements set forth in the Program. The Department acknowledges that, as of the date of
this Agreement, Applicant and~ have satisfied applicable requirements set forth in
Sections 23-90 (Inclusionary Housing), inclusive of the Resolution.
7.
Affordable Housing Units created pursuant to this Agreement will be occupied solely by
tenants who are I,ow Income Households at the time of such tenant's Initial Occupancy of such
housing and shal6 be operated as Affordable Housing for Low Income Households for the life of
IN Agreement - R 10 and Uesi~nntcd Arcos
Execution Copy
the increased Floor Area of the Compensated Development(s). Such obligation shall run with
the tax lots) within the zoning lot containing such Affordable Housing Units.
8.
(i)
The rents charged by Applicant and~For the Affordable Housing Units upon
Rent-up of such units shall (a) not exceed the rents set forth in the schedule attached hereto as
Exhibit D, which have been established by the Department pursuant to Sections 23.961(b) of
the Resolution,(b) be registered with the New York State Division of Housing and Community
Renewal or any successor agency ("DHCR") and (c) thereafter shall be subject to Rent
Stabilization for the term of this Agreement and upon termination of this Agreement in
accordance with this Section Sfv). Applicant and HDFC shall register all Affordable Housing
Units with DHCR upon the earlier to occur of: (A) the occupancy of the last remaining unit, or (B)
one year From Completion Deadline, hereinafter (the "DHCR Registration Deadline").
(ii)
Ronts for existing tenants of Affordable Housing Units upon renewal of leases for
such units or at any time during the term of the lease shall be the lesser of (a) the rent allowed
by Rent Stabilization, or (b) the Maximum Monthly Rent for Low Income Households.
(iii)
Upon rental of an Affordable Mousing Unit that becomes vacant after Initial
Occupancy, to a new tenant, the rent shall be the lesser of the rent allowed by Rent Stabilization
or [he Maximum Monthly Rent for Low Income Households.
(iv)
Notwithstanding anything to the contrary contained herein, Appilcant and_
shall not utilize an exemption or exclusion from any requirement of Rent Stabilization to which
Applicant and
might otherwise be or become entitled with respect to one or more
Affordable Housing Units, including, but not limited to, any exemption or exclusion from tho rent
limits, renewal lease requirements, registration requirements, or other provisions of Rent
Stabilization due to (i) the vacancy of a unit where the rent exceeds a prescribed maximum
amount, (ii) the fact that tenant income and/or a unit's rent exceeds prescribed maximum
amounts, (iii) the nature of the tenant, or (iv) any other factor.
(v)
In the event that the Affordable Housing Units are not located in the Compensated
Development and the increased Floor Area of the Compensated Development generated by such
Affordable Housing Units ceases to exist, the Affordable Noosing Units shall continue to remain
subject to Rent Stabilizat(on so long as the existing tenants in occupancy remain tenants pursuant
to the provisions of Rent Stabilization.
(vi)
Applicant and _shall grant all tenants the same rights that they would be
entitled pursuant to Rent Stabilization. In addition, Applicant and_ shall register the
Affordable Housing Units with DHCR pursuant to Rent Stabilization, and such units shall be subject
to Rent Stabilization without regard to whether such Affordable Housing Units are statutorily subject
to Rent Stabilization. Applicant and
shall ensure that these rights are stated in each (ease
for an Affordable Housing Unit. If any court declares that Rent Stabilization is statutorily
inapplicable to an Affordable Housing Unit, such unit shall remain in Rent Stabilization in
accordance with this Agreement and the lease for such Affordable Housing Unit for the remainder
of the Regulatory Period.
9.
The Department shall issue a Certificate of Completion of Affordable Housing Units upon
Applicant's and HDFCs compliance with the following requirements (a)(hough (p) of this
Section 9:
I I Agrceinen~ - K I (1 and Desig,neued Antis
Paccutiun Copy
(a)
receipt of a Certificate of Occupancy ("C of O") or a Temporary Certificate of

Occupancy ("T C of O") for ell of the Affordable Housing Units;
(b)
conduct of a site inspection which establishes to the satisfaction of the

Department that the Affordable Housing Units have been completed in
accordance with this Agreement and the Construction Requirements, and
(c)
funding of the Special Reserve Fund in accordance with Section 15 of this

Agreement; and
(d)
submission of proof, satisfactory to the Department, chat the Affordable Flousing

Units are being rented in accordance with Sections 8, 21 and 22 of this
Agreement and that Applicant and~have entered into leases with tenants
for at least 10% of the Affordable Housing Units in accordance with the Program,
pursuant to which the tenants inay begin occupancy upon the issuance of a C of
O or T C of O; and
(e)
submission of ceRificates of insurance required by Section 12 of this Agreement

with all premiums for the current year fully; and
(f)
submission on or after the date of the C of O or the T C of O for the Affordable

Housing Units, as the case may be, of (i) a policy of fee title insurance dated as
of the date the~acquired legal title and Applicant acquired beneficial title to
the Premises, or a title policy insuring the lien of mortgage of the primary Lender
for the Building and/or the Premises or such Lender's credit enhancer, dated as
of the date of the closing of the financing of such mortgage, will satisfy the
foregoing, where such policy (a) has been issued by a title company in good
standing licensed to issue title Insurance in New York State and contains the
Standard New York Endorsement (Owner's Policy) in substantially the form that
appears as xhi it F hereto, (b) such policy evidences the~record and
legal title to the Premises and the absence of liens and other encumbrances on
the Premises other than those approved by the Department, (ii) proof of payment
of premiums therefore, and (iii) title continuations run by the title company from
the date of the fee title policy to the date of submission of such title policy
together with a letter from the title company confirming the absence of liens and
encumbrances on the Premises other than those previously approved by the
Department and mechanics liens which have been bonded; and
(g)
submission of an executed contract between the Departmen4 and the

Administering Agent in accordance with Section 11 of this Agreement; and
(h)
submission of a Memorandum of Regulatory Agreement, where applicable, and

the Agreement stamped as recorded separately in the City Register in
accordance with Section 24 and Section 29 respectively, of this Agreement; and
(i)
submission of proof that any required subordination and non-disturbance

agreement ("Affordable Mousing Subordination AgreemenP') was recorded
immediately following execution thereof and that Applicant and~fully
complied with the requirements of Section 19 of this Agreement; and
It I r\grcemenl - R 10 and Designntrel Are;is
G~ccution Copy
(j)
submission of,(1) proof of registration of the Building and ail occupied Affordable
Housing Units with the DHCR, and, if the Building is not fully occupied, an
shall register all remaining units as they
affidavit stating that Applicant and
become occupied; (2) proof that such Building is entirely free of violations of
record issued by any City or State agency pursuant to the Multiple Dwelling Law,
the Building Code, the Housing Maintenance Code and the Program and (3)
submission of an a~davit stating that Applicant and~shall complete
multiple dwelling registration of the Building on the Premises, that contains the
Affordable Housing, in accordance with the New York City Housing Maintenance
Code; and
(k)
certification that the representations, warranties and statements made by the

Applicant and that are contained in this Agreement and in any other
documents executed in connection with this Agreement remain true and correct
as of the date on which the foregoing conditions have been satisfied; and
(I)
submission of proof that the Building Plans were reviewed by a DOB plan
examiner and submission of zoning calculations approved by a DOB plan
examiner provided, however, that if such approved zoning calculations differ from
those set forth in the architect seifcertification submitted to the Department on
December 10, 2013, the Departments issuance of the Certificate of Completion
of the Affordable Housing Units shall be based upon such DOB approved
calculations; and
(m)
where applicable, submission of proof of completion of all applications for tax

exemptions and that Applicant and~have fully complied with Section 5 of
this Agreement. With respect to an application for real property tax exemption
benefits pursuant to Article XI, Applicant and~shall be deemed to have
compiled with this Section 9(m) when Applicant and_ haves provided the
Department with all information the Department deems necessary for it to submit
a request, on behalf of Applicant and ~,to the New York City Council for
real property tax exemption benefits for the Affordable Housing pursuant to
Article Xi; and
(n)
compliance with 26-901 26-905 (Chapter 10 of Title 26) of the Administrative

Code of the City of New York reporting requirements as agreed to pursuant to
Applicant's letter to the Department dated December 20, 2013; and
(o)
performance of any and ail remediation and construction activities in accordance

with the Remedial Action Plan and Construction Health and Safety Plan, as
approved by the New York City Department of Environmental Protection on
December 18, 2013; and
(p)
compliance with all terms of this Agreement and the Program
Warranties. Applicant andSshall obtain and retain commercially reasonable

10.
warranties of the work on the Affordable Housing Units from the general contractor and all
subcontractors peifiorming such work and, at the DeparimenYs request, shall submit such
warranties far inspection.
CFI Agreement ~ RI O and Designated Arens
Execution Copy
11.
Renting Affordable Housing Units. Applicant and~have contracted with ~,a
not-for profit organization qualified by the Department to participate iri the Program, to act as
Administering Agent for the Affordable blousing Units ("Administering AgenY'). The
Administering Agent shall ensure that Affordable Housing Units are rented at Rent-up and each
subsequent vacancy, in compliance with the Plan and ali of the requirements of the Program.
Within (60) sixty days of the DHCR Registration Deadline, the Administering Agent shall submit
an affidavit to the Department attesting that the Monthly Rent registered and charged for each
Affordable Housing Unit, complied with the Monthly Rent requirements for such unit, at Initial
Occupancy. Each year after Rent-up, in the month of March, the Administering Agent shall
submit an affidavit to the Department attesting that each lease or sublease of an Affordable
Housing Unit or renewal thereof, during the preceding year, complied with the applicable
Monthly Rent requirements of the Program. A contract between the Administering Agent and
the Department ("Administering Agent AgreemenP') Is attached and made a part hereof as
Exhibit F. The Department reserves the right to replace the Administering Agent in the event
that the Affordable Housing Units are not managed and operated in compliance with the
Program.
12.
Insurance.
(a) Insurance,.
(i)
Applicant and _shall obtain and maintain in farce all-risk casualty
insurance, including broad form extended coverage that, in the event of a casualty to the
Building containing the Affordable Housing Units, will pay an amount of insurance equal to full
replacement value of the Building containing the Affordable Housing Units.
(ii)
Applicant andshall obtain and in force commercial general liability
insurance and other insurance of commercially reasonable types and amounts with respect to
the Building containing the Affordable Housing Units.
(b) a uatt .
(i) In the event of a casualty, Applicant,_ andlor the Administering Agent
shall promptly notify the Department thereof. The Department agrees that, subject to the terms
and conditions set forth in this Section 12, the proceeds of the insurance on the Premises may
be utilized as determined by the lender or lenders participating in the financing of the Building
(the "Financiers") in accordance with the documents governing such Financiers' loan(s), copies
of which have been provided to the Department (collectively, the "Loan Documents"). Applicant
and _ shall promptly inform the Department of the disposition of such insurance proceeds.
(ii)(A) In the event of a partial casualty, to the extent that any additional Floor
Area created pursuant to this Agreement continues to exist or is reconstructed after such
casualty, tha Affordable Housing Units shall be reconstructed so as to maintain in the building
the same ratio of Affordable Housing to the additional Floor Area as existed prior to such
casualty, notwithstanding the availability of, or priority of payment of, insurance proceeds, and
the terms of this Agreement shall remain in full force and effect.
(B) If the Applicant and Financiers determine that due to the nature of the
casualty and the condition of the remaining structure, it is not practicable to include the
Affordable Housing Units as originally configured in the replacemenEbuilding,the Affordable
i l~i Agreenicnt - K 10 ;end Designated areas
F,secution CupY
Housing Units may be reconstructed in a location other than the Premises in accordance with
the requirements of this Agreement and the Program.
(iii) in the event of a total casualty, where all additional Floor Area created
pursuant to this Agreement ceases to exist and the Applicant elects not to utilize the additional
Floor Area in the restored building, if any, then all proceeds shall be applied in accordance with
the Loan Documents.
(iv) Applicant and agree that if the Building containing the Affordable
Housing Units is reconstructed as provided in Section 12(ii), then:(A)at such time as the
restored portion of the Building or any new building is ready for occupancy, the Affordable
Housing Units on each restored floor shall be made available for occupancy and re-rented
concurrenHy with the market rete units on the same floor,(B)Applicant and~shall restore,
repair, replace rebuild, alter or otherwise improve the Affordable Housing Units in accordance
with this Agreement and the Program in effect as of the date hereof;(C) such construction shall
be free of all violations under the New York City Building Code, the New York State Multiple
Dwelling Law and the New York City Housing Maintenance Code and (D) Applicant and
shall, upon request of the Department, amend this Agreement to reflect any changes to the
number, configuration or location of the Affordable Housing Units in any replacement building or
off site location for the Affordable Housing Units made in accordance with this Section 12.
(v) The Department acknowledges and agrees that Applicant and~have
the right to require the Financiers under any current or future Mortgage to use the insurance
proceeds for the rebuilding of the Premises (with certain protective procedures).
13.
Construction Monitoring. The Department may monitor the construction of the
Affordable Housing Units in any reasonable manner, including inspection of the Premises.
Upon request: (a) Applicant and~shall give the Department notice of planning and
construction progress meetings by telephone or in writing and (b) the Department may (i)
participate in planning and construction progress meetings, (ii) review construction contracts,
plans, specifications and materials samples and (iii) review proposed changes to the foregoing.
Applicant and
shall give to the Department (x) following the Departments request for any
documents or materials pursuant to the preceding sentence, notice of proposed changes to
such documents or materials, and (y) notice of any casualty to or other material event
concerning the work on the Affordable Housing Units.
14.
Disclosure of Financial Arrangements. Upon the request of the Department, Applicant
and
shall fully disclose the financial terms and arrangements relating to the Affordable
Housing Units and sale or use by Applicant of the Certificate of Completion of Affordable
Housing Units. in the event that the Department obtains information pursuant to this Section 14,
the Department shall thereafter disclose such information to third parties only as required by
law, except that such data may be used and disclosed without attribution to Applicant and
NDFC as part of an analysis of the Program.
15.
Special Reserve_Fund. Simultaneous with or prior to the issuance of a Certificate of
Completion of Affordable Housing Units, Applicant and ~ will fund a special operating
reserve fund the "S ecial Reserve Fund" in the amount of either: (1)
which represents ~per
square foot of Affordable Housing as stated in the architect self-certification submitted to the
DepartmenF on December 10, 2013 (the "Architect Certification") or (2) if, in accordance with
Section 9 (q, the DOB approves zoning calculations that differ from the Architect Certification,
IH Agreement - R 10 find Designated Areas
Execution Copy
thence per square foot of Affordable Housing as stated in such DOB approved zoning
calculations, which shall be placed in a blocked reserve account to be administered by the
Department or its designee. The Special Reserve Fund and the interest accrued thereon shall
belong to the Premises and the owner of such Premises and shall be used solely for the benefit
of the Affordable Housing Units. The Special Reserve Fund is separate from the Building
reserve fund built into the rent roll that will accumulate over time. The proceeds of the Special
Reserve Fund shall be available to pay for unanticipated increases in the cost of operating and
maintaining the Affordable Housing Units (including, but not limited to, escalating real estaie
taxes), or for capital repairs or improvements, the cost of which cannot be covered by the
Building's capital reserve fund. Expenditures from the Special Reserve Fund shall be made
solely at the discretion of the Department and may be made by the pepartment on behalf of
Applicant.
If, the Department authorizes any expenditures to be made from the Special Reserve Fund,
Applicant and MDFC shall replenish the Special Reserve Fund in the amount of the total sum of
ail such authorized expenditures by applying the excess of fifty percent(50%) of collected rents
over actual operating expenses until ail such repayments have been made. Such repayments
into the Special Reserve Fund shall be made prior to the payment of any unpaid developer,
syndication or partnership fees. in addition, such repayments shall be supported by the most
recent financial statements, an independent auditor's report and a rent roll for the Premises.
Applicant and HDFC may choose to replenish such Special Reserve Fund on a calendar year
basis or on a fiscal year basis. In addition, upon sale, transfer other disposition of the
Affordable Housing Units or any interest therein, Applicant or HDFC as applicable, shall repay,
in full, all amounts withdrawn from and owed to the Special Reserve Fund.
16.
Inspection.
(a)
The Department shall have full authority to inspect the Premises without prior
notice during business hours and Applicant and~and the Administering
Agent shall cooperate fully with the Department in any such inspection. The
Department shall have authority to inspect the Premises other than during
business hours on three(3)days prior notice.
(b)
The Department shall have full authority to inspect the books and records of
Applicant and HDFC and the Administering Agent with respect to the Affordable
Housing Units without prior notice during business hours and Applicant and
and the Administering Agent shall cooperate fully with the Department in
eny such inspection. Applicant and ~ and the Administering Agent shall
furnish copies of all books and records to the Department, without cost to the
Department, upon five (5) days prior written request.
17.
Operating Accounts. Applicant and _shall provide the Department with the names
and locations of ail bank accounts established with respect to the management and operation of
the Premises by Applicant and~(the "Oaeratina Accounts"). All such accounts shall
confer plenary authority on the Department to freeze such accounts, which authority the
Department shall exercise subject to Section 18 of this Agreement. Furthermore, Applicant and
1 shall provide the Department with annual operating statements for the Affordable
Housing Units.
18.
Remedies of the Department.
Ili Agreement - R10 ;Intl Designufzil Arens
Execution Copy
(a)
if Applicant, for Administering Agent violate any of the terms of this

Agreement, or if any of the representations and warranties by Applicant and
set foRh in Section 9(kl of this Agreement are determined to be false, then
the Department may declare a default under this Agreement.
(b)
Upon declaration of a default under this Agreement, the Department shall give
Applicant, _and the Administering Agent, as applicable, notice thereof by
facsimile, hand delivery or reputable overnight courier and a reasonable
opportunity to cure (if such default can be cured). If at the end of the cure period
(if any) the default has not been cured, then the Department shall provide
Applicant,_ and the Administering Agent, as applicable, notice thereof and
shall provide Applicant and O~nd the Administering Agent an opportunity to
be heard on not less than three (3) days prior written notice. Following such
hearing, upon probable cause to believe that a default has occurred under this
Agreement, the Department may (i) assume responsibility for management of the
Premises directly or through a third party designated by it, (ii} freeze the
Operating Accounts, (iii) seek specific pertormance of this Agreement or an
injunction against its violation, (iv) have a receiver of its choice appointed during
the pendency of any litigation, (v) seek monetary damages against Applicant and
and/or Administering Agent, as applicable, and/or (vi) terminate this
Agreement with respect to any portion of the Affordable Housing for which a
Certificate of Completion of Affordable Housing Units pursuant to Section 9 has
not been issued. In the event that the Department exercises its rights under
clause (ii) of this Section 18(b1 and provided that there are sufficient funds in the
Operating Accounts then the Department shall use the funds in such Operating
Accounts to make payments due under the loan documents for previously
approved mortgage loans of the Applicant and~and to pay for reasonable
and customary operating expenses for the Premises.
(c)
If an Affordable Housing Subordination Agreement has been entered into by a

lender ("Financier") in accordance with Section 19 of this Agreement, the
Department shall terminate this Agreement at any time prior to the issuance of
the Certificate of Completion of Affordable Housing Units at the request of such
Financier, or its successors or assigns, if such Financier, its successors or
assigns, commences foreclosure proceedings or receives a deed in lieu of
foreclosure with respect to the mortgage loan that is the subject of such
Affordable Housing Subordination Agreement. If the Department terminates this
Agreement pursuant to this Section 18(c): (1) ail benefits granted pursuant to
this Agreement to any project will be revoked and (2) this Agreement shall
become null and void. The Department shall provide written confirmation of
termination in recordable form upon the written request of Applicant and~
and/or Financier.
(d)
The remedies set forth in Section_ 1.8jb~ shall be cumulative with any ocher
remedies available to the Department at law or in equity and exercise of one or
more remedies set forth in Section '18(b) shall not limit the Department in the
exercise of one or more other remedies set forth therein or otherwise available fo
the Department at law or in equity.
(e)
The Department may exercise the remedies set forth in Section 18(b) without the
notice, opportunity to cure or hearing provided therein if the Department
111 i\grcement - li 10 ;md Designated Arehs
Execution CnPY
determines that exigent circumstances require immediate action to protect the

Premises or the tenants thereof. The Department will provide notice and a
hearing as provided in Section 18(b1 promptly following exercise of its remedies
as set forth therein.
19.
(f)
If the Department elects to assume responsibility for management of the

Premises pursuant to this Section 18, Applicant and ~shall immediately
deliver possession of the Premises and all books and records kept In connection
therewith to the Department or the person designated by the Department and
shall cooperate fully in effectuating the smooth transfer of management and
control of the Premises, including execution of written instruments and provision
of notice to third parties.
(g)
Applicant and _hereby grant the Department and its designees an

irrevocable license to enter and remain on the Premises far the purpose of
managing such Premises as provided in this Section 18.
Debt Restrictions.
(a)
Initial Debt: in accordance with Section 23-93 of the Resolution, Applicant and
HDFC shall not mortgage or otherwise encumber the Affordable Nousing Units or
this Agreement without the prior written consent of the Department.
Furthermore, in the event that the Department consents to a mortgage loan, the
Financier must enter into a Affordable Housing Subordination Agreement with the
Department in form and substance satisfactory to the Department, that
subordinates the loan to all of the terms and conditions of this Agreement,
substantially in the form annexed hereto as Exhi ' (the "Affordable Housing
Subordination Agreement"). immediately following execution of the Affordable
Housing Subordination Agreement, Applicant and _shall cause such
Agreement to be recorded against tho Affordable Housing Units in the City
Register for the county in which the Premises are located, and shall pay ail
required fees and taxes in connection therewith.
Attached hereto as Exhibi J is the development budget approved by the
Department setting forth the sources and uses of financing for the construction of
the Affordable Housing. Provided the lender holding a mortgage that secures
such debt enters into the Affordable Flousing Subordination Agreement in form
and substance satisfactory to the Department and the Department receives proof
of recordation of such Agreement immediately following execution thereof, the
Department approves such debt (the "initial DebP').
(b)
Subsequent Debt: Notwithstanding anything to fhe contrary contained herein, on

or after the date of issuance of the Certificate of Completion of Affordable
Housing Units in accordance with Section 9 of this Agreement, or, if more than
one Certificate of Completion of Affordable Housing Units is issued, on or after
the date of the final Certificate of Completion of Affordable Housing Units)
Applicant and _ shall not mortgage or otherwise encumber the Affordable
Mousing Units or this Agreement with debt other than any Initial Debt approved
by the Department and any modifications of same unless, (1) Applicant and
~I~ave Fiotified the Department of such tlebt; (2) the lender is a local, state,
or federal agency, savings bank, commercial bank, life insurance company,
10
it I Ag~vement -RIO and Designnrod Arms
F.~ecution C'opY
public real estate investment company, pension fund, or other lender approved
by the Department, (3) if the debt service coverage ratio is less than 1.1,
Applicant ands have obtained the prior written consent of the Department,
and (4) if such debt is a new indebtedness and/or a new mortgage, the Financier
enters into an Affordable Housing Subordination Agreement with the Department
which Applicant and~shall cause to be recorded against the Affordable
Housing Units immediately following execution thereof in the City Register far the
county in which the Promises are located.
20.
Plan Certification. Following the execution of this Agreement, the Department will, upon
the request of Applicant and/orb, certify that the Pian has been submitted and approved,
and is in compliance with the Program.
21.
Marketing of Affordable Housing Units. Tho Administering Agent shall be required to
market the Affordable Housing Units in accordance with the Program. Furthermore, each lease
for an Affordable Housing Unit shall provide that such lease may be terminated and such tenant
may be evicted if such tenant falsely or fraudulently certifies income or household composition
to the Administering Ageni.
22.
initial Occupancy Certification. Within sixty (60) days following the DHCR Registration
Deadline, the Administering Agent shall submit to the Department an affidavit attesting that each
Household occupying an Affordable Housing Unit complied, at Initial Occupancy, with the
annual income eligibility requirements of tha program and that the Monthly F2ent registered and
charged for each Affordable Housing Unit, complied with the Monthly Rent requirements for
such unit, at Initial Occupancy. In accordance with C.F.R. 5.609 or any successor regulations,
"Annual Income" shall moan the anticipated total income from all sources to be received by the
household head and spouse and by each additional member of the household, including all net
income derived from assets, for the twelve (12) month period following the initial determination
of income. The Administering Agent also shall retain all records and documents relating to
income determination for a minimum of three (3) years after the date a tenant commences
occupancy in an Affordable Housing Unit.
23.
Successors and Assigns. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assignees. Neither Applicant
nor HDFC shall sell, transfer or otherwise dispose of the Affordable Housing Units without prior
approval from the department. Before any sale, transfer, or other disposition of the Affordable
Housing Units, the Applicant and _shall require the subsequent purchaser or transferee to
assume in writing, Applicant's and obligations and duties under this Agreement,
pursuant to an Assignment and Assumption Agreement in form and substance satisfactory fo
the Department, which shall be in recordable form and shall provide the Department with a
execuked copy of such assumption agreement and proof of recordation thereof.
24.
Condominium Conversion. Nothing in this Agreement shall prohibit (he Applicant and
from subdividing
the Building on the Premises into condominium units (the
"Condominium Uniis"), so long as (a) the Department approves any condominium documents,
including, but not limited to, the condominium declaration and by-laws, necessary to effectuate
such subdivision of the Building, (b) the Condominium Units meet the requirements of Section
339-m of the Reai Property Law, (c) the Department determines that the Affordable Housing
Units will be operated pursuant to the requirements set forth in the Agreement and the Program,
end (d) in the event that the Regulatory Agreement is not recorded against Che tax lot for
Affordable Housing Unit, the Memorandum of Regulatory Agreement in tho form attached
i\gi'ecment - R 10 and Ucsi~natecl areas
Hxecutiun Cupy
hereto as Exhibit L has been recorded against the Affordable Housing Unit prior to receipt of a
Certificate of Completion of Affordable Housing Units in accordance with Section 9 of this
Agreement.
25.
Investigation Clause. Applicant ands and Administering Agent shall be bound by
and comply with the provisions of the Investigation Clause annexed hereto as E hibi I.
26.
Modifications.
(a)
No provision of this Agreement may be extended, modified, waived or terminated

orally, but only by an instrument in writing signed by the party against whom
enforcement is sought.
(b)
Applicant and _and/or the Administering Agent, as applicable, shall comply

with all modifications to Program reportin requirements as set forth In the
Guidelines, of which the Applicant and
and Administering Agent shall be
deemed to have constructive notice, concerning: (i) the type of documents to be
retained; (ii) the length of time for which such documents must be retained; and
(iii) the form and method of submitting such documents to the Department.
27.
Counterparts. This Regulatory Agreement may be executed in counterparts, each of
which shall be deemed an original but all of which together shall be deemed one and the same
instrument.
28.
Notic s. All notices, approvals, requests, waivers, consents or other communications
given or required to be given under this Agreement shall be in writing and sent or transmitted as
follows:
if to Applicant
with a copy to:
If to fhe~:
12
Iixecutiun Copy
IH Agreement - R 10 and Designated Wens
iF to the Department:
DepaRment of Housing Preservation and Development

100 Gold Street
New York, NY 10038
Attn: Assistant Commissioner for Housing Incentives
Facsimile (212)863-5899
with a copy to:
Department of Housing Preservation and Development

100 Gold Street
New York, NY 10038
Attn: General Counsel
Facsimile (212)863-8375
Notices must be hand delivered, transmitted via facsimile or sent by certified or registered U.S.
mail, return receipt requested or overnight delivery by a reputable national carrier. Notice shall
be deemed to have been given upon (i) delivery if sent by hand delivery or U.5. mail, and (ii)
confirmed receipt, if sent by facsimile, to both the addressee and the person entitled to receive a
copy thereof. Each party named above may designate a change of address by written notice to
all of the other parties
29.
Recordation.
(a)
Applicant and ~shall cause this Agreement to be recorded against the Premises
prior to commencement of construction, in the City Register for the County in which the
Premises are located and shall pay all required fees and taxes in connection therewith.
(b)
If the conversion of the Eiuiiding to Condominium Units, including without limitation the
filing of the Declaration and other actions required to complete such conversion of the
Building have not occurred prior to the time when this Agreement is required to be
recorded against the Premises, or any other document required hereunder to be
recorded against the Premises, then, notwithstanding anything contained herein to the
contrary, this Agreement and such other documents shall be recorded against the entire
Premises, In such event, at the time of condominium conversion, provided that the
Memorandum of Regulatory Agreement referred to in Section 24 is recorded
simultaneously therewith, the Department will release the Condominium Units other than
the Condominium Unit containing the Affordable Housing.
30.
More.Restrictiye.Prov_isions._Govern. If the Affordable Housing Unifs are also subject to
another regulatory agreement, then (a) in the event of any conflict or ambiguity between the
provisions of this Agreement and the other regulatory agreement, the more restrictive of the
applicable provisions of the Agreement and such other regulatory agreement shall govern and
(b) nothing herein, including but not limited to, Sections 7, 8 and 11 hereunder, shall limit,
reduce or affect in any way the duration of any restrictions imposed on the operation or
occupancy of the Affordable Housing Units by this Agreement.
31.
Termination
(a)
The Department reserves the right to terminate this Agreement with notice, in
accordance with Section 28, to Applicant and~if Applicant and~do not
complete the Affordable Housing Unils by the Completion Deadline.
13
IH Agreeinenl RIO and Designnted Arens
(b)
Execution Copy
Applicant and~may terminate this Agreement with notice, in accordance with

Section 28, to the Department at any time prior to the issuance of the Certificate of
Completion of Affordable Housing Units.
(No further text signatures on next page]
~4
fi~ccutiun CapY
Ili Agreeincnt - li 10 and pesignated Arcas
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
set forth above.
Department of Housing Preservation and
Development of the City of New York
/~ r
Minam Colon, Assistant Commissioner for
Housing Incentives
APPROVED AS TO
FORM BY STANDARD
TYPE OF CLASS FOR USE
UNTIL April 30, 2015
/s/ Howard Friedman
Floward Friedman
Acting Corporation Counsel
li
TFIC CI'CY OF NEW YORK

UGPART~IENT OF kfOUSING PRGSGRVAT]OY rAND
D~VBI~OI'Ntf VT
OFFICE OP DEVELOP~(ENT
100 GOLD Sf[tGT. NIN'C({FLOOR
iVEW YORK. NEGV YORK 10038
(212)863.5641
Ai'C'OI2lle1f3LG Ii0US1iYG PLAN APPL[Ct#TfON
PURSUr~NT'TO TFIG INCLUSIO~fARY HOUSING PROG
RAM
1. Applicant:
Address
Contact Person:
Phone:
Fax:
Email:
2. Owner (if d(fferent):

Address:
Contact Porson~.
Phone:
Fax:
Email:
3. Administeriny Agent:
Address:
Contact Person'.
Phone.
Fax:
Email:
Inclusionary Housing Program application
4. General Contractor
Address:
Contact Person:
Phone:
Fax:
Small:
5. Managing Agent:
Address:
Contact Person:
Phone:
Fax:
Email:
6. Name of Architect:
Address'.
Contact Person:
Phone:
Fax:
Email:
7. Name of Attorney.
Address'
Contact Persons
Phone.
~'2X:
Email:
Inclusionaiy Housing Program application
II. Address of the Afto

Street Address:
Borough:
Block: 1064
Canmunity DisU
9. Inclusionary Housing District of Affordable Housin

g Unfts:
fx~ R10 inciusionary D IH Designated Area (insert name):
_
(e,g. West Chelsea, Hudson Yards, 125m Street, etc)
Special District O Yes (insert name):
CJ No
~ Other (please explain): Compensated Developments will

be located in R10 zoning
districts.
10. If publicly financed, list all sources of governmentaC
income housing tax credits, bond financing, and land assistance, including lower
disposition programs:
ThegroLct will be privates.financed.
~
~____~
'11. Type of Project(check all that apply):

A
B.
~ NEW CONSTRUCTION
PRESERVATION
O SUBSTANTIAL fZEHABIUTATION
ON-SITE
~9 OFF-SITE
.._... _,__. _.._
C. Inciusionary Units
-- - -
__._.____...._..1
D. Non-Inclusionary Uni(s
~~ RENTP,L
O RENTAL
L~ HOMEOWN6RSNIP
7
HOMEOWNERSHIP
Inciusionary Housing Program appllcalinn
e
TOTAL t! OF UNITS
TOTAL # OF IH UNITS:
77
17
TOTAL # OF SUPER'S UNITS:
12. Income Distribution of Affordable Housing Units:

17
Number of low-income units (equal to or less than b0% AMI)

Number of modorate-income units (equal to or less than 125/a
AMI), if any
Number of middle-income units (equal to or less than 175%
AMI),if any
13. Tax Exemption To Be Requested: Article XI

1A. Indicate below If the project will contain any mixed-use condominium, co-op or both?
CJ mixed-use condomi~lum
mixed-uso co-op
mixed-use condominium and co-op
15.
Applicant:~
~~
Ely:~
Authorized Signature of Applica
~~~
Print Nama:~_~~
Dato;
indusionary Housing Program appiical~un
ll~ecution COPY
III :\rcentent - R IU and Ucsigfuued r\rcus
EXHIBIT C
BUILDING PLANS
i ~~
Exhlblt C
Apartments
Unit Summary
Un
((8(1/(119
D Bdrm
1 edrm
2 Bdrm
30drm
Total
3
5
6
3
37
E.eecutiun Copy
IH Agreement- RIO;md Desiyn;iroJ Arras
EXHIBIT D
SCHEDULE OF RENTS AND EXPENSES
2n
# Units
3
5
5
3
ll
AMt Levei
80%AMI
80/a AMI
80% AMI
80%AMI
Inc(usionary Housing Units Rents'
Studio
1 Bdrm
2 Bdrm
3 Bdrm
Total
Exhibit D
Lega( Regulated Rent"

~
~
~
`Tenants wits be responsible for monthly electricity payments.

""The maximum Legal Regulated Rent is 30% of 80io of the Income index
as defined in the New York City Zoning Resolution.
Expenses
Total Units: 17
IncSusionary Housing Units: 17
Supplies/Cleaning(fxterminating
Heating
Gas &Electricity
Cooking Gas
Repairs &Maintenance
legal &Accounting/AuditingJAdministrative
Painting
Superintendent &Maintenance Staff Salaries
Elevator N~aintenance and ReAairs
Management Fee
Water &Sewer
Fire and liability Insurance
Replacement Reserve
Real Estate Taxes tArticle XI anticipated)
Total Expenses
ToWI
Exoenses
Exhibit D
B.eacution Copy
IH Agreement - R IU and besignntecl Areas

EXHIBIT E
STANDARD NEW YORK ENDORSEMENT
(OWNER'S POLICY)
1. The following is added to the insuring provisions on the face page of this policy:
" .Any statutory lien for services, labor or materials furnished prior to the date hereof,
which
has now gained or which may hereafter gain priority over the estate or interest of the
and
insured as shown in Schedule A of this policy,"
2. Exclusion Numbor 5 is deleted, and the following is substituted:
5. Any lien on the Title for real estate taxes, assessments, water charges or sewer rents
imposed by governmental authority and created or attaching between Date of Policy and the
date of recording of the deed or other instrument of transfer in the Public Records that vests
Title as Shown in Schedule A.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i)
modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii)
extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of
the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Othervvise, this endorsement is subject to all of the
terms and provisions of the policy and of any prior endorsements.
Insurance Company of New York has caused
IN WITNESS WHEREOF,.
this Endorsement to be signed and sealed on its date of issue set forth herein.
DATED:
COUNTERSIGNED^
~_
Authorized Signatory
)nsurance Company
37
zi
r~~~~~~~, c~nv
IH r\greement -RIO and Designated Arens
EXHIBIT F
ADMINISTERING AGENT AGREEMENT
INCLUSIONARY HOUSING PROGRAM
~~
Execution Copy
IH Agreement R 10 and Designntc<{ Areas

Administering Agent Agreement
inclusionary Housing Program
AGREEMENT
of December, 2013, between

~,and the Department of
an office at 100 Gold Street,
having an officeat
Housing Preservation and Dever
Ninth Floor, Naw York, NY 10038.
and _have executed a

WHEREAS,
Regulatory Agreement with the Department, to create seventeen (17) Affordable Housing Units
identified
of located in New York County at
as~nthe Tax Map of the City (the "Affordable Housing Units") In accordance
with Section 23-90 (Inclusionary Housing), inclusive of the Zoning Resolution ("Resolution") and
with the Inclusionary Housing Program Guidelines ("Guidelines"); and
WHEREAS, Administering Agent has agreed to ensure that the Affordable Housing Units are
rented in compliance with the Agreement at Rent-up and each subsequent vacancy and has
signed an agreement with the Applicant and Ito that effect; and
WHEREAS, Administering Agent has been qualified to act as an Administering Agent by the
Department;
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained
herein, it is hereby agreed that Administering Agent will assume the ongoing responsibility for
insuring that each Affordable Housing Unit is rented and upon vacancy re-rented in compliance
with the Regulatory Agreement. in addition, the Administering Agent shall (1) maintain records
setting forth the facts that form the basis of any affidavit submitted to the Department; (2)
maintain such records as the Department may require at the Administering AgenPs office or
other location approved by the DBpartment; and (3) make all records and facts of the operation
of the Administering Agent available for the DepartmenPs inspection.
Notwithstanding any other remedy contained herein, the Department may commence an action
against Administering Agent to require specific performance of Administering t~genYs
obligations herein. Department reserves the right to replace Administering Agent in the event
that the Affordable Fiousing Units are not rented at the Rent-up and each subsequent vacancy
thereafter in compliance with the Program.
This Administering Agent Agreement may be executed in counterparts, each of which shall be
deemed an original but all of which together shall be deemed one and the same instrument.
[NO FURTHER TEXT APPEARS ON THIS PAGE]
23
Execution Copy
IFI Agreement - R ID and Dcsignntcd Ares
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
set forth above.
Department of Housing Preservation and

Development of the City of New York
`'`-f~~
BY:
Marla
Assistant Commissioner for
Housing Incentives
24
[ixccution CuPY
ili i\greement - I2I0 anil Dcsignaicd i\rcas

UNIFORM ACKNOWLEDGEMENTS
STATE OF NEW YORK )

SS:
COUNTY OF NEW YORK)
i~'t.
On this Z/day of December, 2013, before me, the undersigned, a Notary Public in and for
said State, personally appeared Miriam Coldn, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to in the within
instrument and acknowledged to me that [s]he executed the same in (her]his capacity, and that
by [herjhis signature on the instrument, the individual, or the person on behalf of which the
individual acted, executed the instrument.
,
r,~
i'
/~'
NOTARY PUBLIC
MARIE L V CARROII
Notory Public, Stnto of Nnw Yark
Nn, 0206274815
f~unlitiud In New Yark County
Commission Expires Otl74/2pt7
STATE OF NEW YORK)

COUNTY OF
N~
SS:
)
On this 'ro day of December, 2013, before me, the undersigned, a Notary Public in and for
said State, personally appeared Jeffrey E. Dunston, personally known to me or proved to me
on the basis of satisfactory evidence to be the individual whose name is subscribed to in the
within instrument and acknowledged to me that [sjhe executed the sags@@@ in (herjhis capacity,
and that by (her)his signature on the instrument, the inc~ivit~al, or the per$on on behalf of which
the individual acted, executed the instrument.
~
~;
MARY PUBLIC
~n~~s.t. fiur,ren
Fy,q~ry yuhhc. S~;aIF,~1 A)~w Yrnk

fJo. p1 1 1U5g0.ì7A4
(~+;nlingti in Dl;os~nU County
.~ r.~..ion aanhm,. pecemr,
~r 7 n, 2n (~_
2J
IFI Agreement - RI(1 and Designated Arens
B.~ecution Copy
EXHIBIT G
AFFORDABLE HOUSING UNITS TRANSFEREE AGREEMENT
a
having
at
an
address
("Affordable Housing Units Transferee") to which ownership of
the Affordable Housing Units as defined in the Affordable Housing Regulatory Agreement dated
201 ,, ("Agreement) between
("Applicant'), a
having an address at
,and THE CITY OF NEW
YORK ("City"), acting by and through its Department of Housing Preservation and Development
(the "Department"), having an address at 100 Gold Street, New York, New York, 10038, has
been transferred in accordance with Section 11 of such Agreement on
, 201 ~, by
execution hereof, specifically agrees to perform the obligations bestowed upon Affordable
Housing Units Transferee in such Agreement. Furthermore, Applicant shall continue to perform
the obligations bestowed upon Applicant after such transfer occurs. On and after such date of
transfer of ownership of the Affordable Housing Units, all notices, approvals, requests, waivers,
consents or other communications given or required to be given under such Agreement to
Applicant and/or Department also shall be in writing and sent or transmitted to Affordable
Housing Units Transferee as follows:
Attn:
Facsimile{~
with a copy to:
Attn:
Facsimile(_,_
ICANTj
[Name]
[Title]
[AFFORDABLE
TRANSFEREE)
(Name)
(Title)
?G
HOUSING
UNITS
Execution CupY
Ili Agreement- IUO and Designated Areas
STATE OF NEW YORK )

SS:
COUNTY OF NEW YORK)
201_, before me, the undersigned, a Notary Public in and
On this
day of
,personally known to me or proved to me
for said Sfate, personally appeared _
within instrument and acknowledged to me that (s]he executed the same in [her]his capacity,
and that by [her]his signature on the instrument, the individual, or the person on behalf of which
NOTARY PUBLIC
STATE OF NEW YORK)

COUNTY OF
SS:
)
On this _day of,.._____, 201_, before me, the undersigned, a Notary Public in and
^, personalty known to me or proved tome
for said State, personally appeared
within instrument and acknowledged to me that (s)he executed the same in [herJhis capacity,
and that by [her)his signature on the instrument, the Individual, or the person on beha{f of which
NOTARY PUBLIC
~~
l~zccution Copy
Ili r\grcement- K~O;mct UesignaleJ i\rcas
EXHIBIT N
MEMaRANDUM OP REGULATORY AGREEMENT
THIS MEMORANDUM OF REGULATORY AGREEMENT made this _day of
201(#), by downer], (description of legal entity (e.g., a New York Irmited liability
company /ormed pursuant to the laws o(the Slate of New YorkJ, ("Applicant"), having an office
at(addressj.
WITNESSETH THAT:
1. The Applicant is owner in fee simple of the premises located in the County of
City and State of New York, known as and by the street address (address], identified as Block
(#j, Lot(#jon the Tax Map of the City (fhe "Premises"), more particularly described in Exhibit A
attached hereto anti made a part hereof;
2. The Applicant has covenanted and agreed for and on behalf of itself, its successors, assigns,
heirs, grantees and lessees, which covenants shall ba covenants running with the land to
provide Affordable Nousing on the Premises in accordance with the Regulatory Agreement
("Regulatory Agreement"), dated as of (insert date) among [insect names) of non-HPD parties]
and the City of New York, a municipal corporation acting through its Department of Housing
Preservation and Development("HPD") and recorded in the Office of the City Register for New
York County on [insert date] as CFRN [insert CFRN number, the provisions of which are by this
reference made a part hereof and Section 23-90 (inclusionary Housing), inclusive of the
Resolution.
3. The Regulatory Agreement and the covenants therein, shall run with the land that constitutes
the Premises in accordance with the terms therein.
4. This Memorandum of Regulatory Agreement is intended to provide constructive notice of the
existence and terms of the Regulatory Agreement and in no way modifies or amends the
Regulatory Agreement. If any provisions of this Memorandum of Regulatory Agreement conflict
with the Regulatory Agreement, the terms of the Regulatory Agreement shall prevail. The
Applicant at its sole cost and expense shall cause this Memorandum of Regulatory Agreement
to be recorded against each tax lot within the zoning Iot containing the Affordable Housing
whether or not such tax lot existed at the time the Regulatory Agreement was recorded.
NO FURTHER TEXT
zs
Fi.~ecution Copy
Ifi Ayrcenient - RIO ~mci Designated Areas
IN WITNESS WHEREOF, this Memorandum of Regulatory Agreement has been executed as of

the date first set forth above.
STATE OF NEW YQRK )

SS:
COUNTY OF NEW YORK)
, 201_, before me, the undersigned, a Notary Public in and
day of
On this
,personally known to me or proved to me
for said State, personally appeared
on the basis of satisfactory evidence to bo the individual whose name is subscribed to in the
within instrument and acknowledged to me that [s]he executed the same in [her]his capacity,
and that by (her]his signature on the instrument, the individual, or the person on behalf of which
NOTARY PUBLIC
7.9
Isecutiun CupY
ihl Agreement - ii 10 ;md DesignatcJ r\rens
EXHIBIT
iNVESTIGA710N CLAUSE
(a) The parties to this Agreement agree to cooperate fully and faithfully with any
investigation, audit or inquiry conducted by a State of New York (State) or City of
New York (City) governmental agency or authority that is empowered directly or by
designation to compel the attendance of witnesses and to examine witnesses under
oath, or conducted by the Inspector General of a governmental agency That is a party
in interest to the transaction, submitted bid, submitted proposal, contracts, lease,
permit, or license that is the subject of the investigation, audit or inquiry.
(b) If any person who has been advised that his or her statement, and any information
from such statement, will not be used against him or her in any subsequent criminal
proceeding refuses to testify before a grand Jury or other governmental agency or
authority empowered directly or by designation to compel the attendance of witness
and to examine witnesses under oath concerning the award of or performance under
any transaction, agreement, lease, permit, contract, or license entered into with the
Clty, the State or any political subdivision or public authority thereof, or the Port
Authority of New York and New Jersey, or any local development corporation within
the City, or any public benefit corporation organized under the laws of the State of
New York, or;
(c) If any person refuses to testify for a reason other than the assertion of his or her
privilege against self-incrimination in an investigation, audit or inquiry conducted by a
City or State governmental agency or authority empowered directly or by designation
to compel the attendance of witness and to take testimony under oath, or by the
Inspector General of the governmental agency that is a party in interest in, and is
seeking testimony concerning the award of, or performance under, any transaction,
agreement, lease, permit, contract, or license entered into with the City, the State, or
any political subdivision thereof or any local development corporation within the City,
then;
(d) The commissioner or agency head whose agency is a party in interest to the
transaction, submitted bid, submitted proposal, contract, lease, permit, or license
shall convene a hearing upon not less than five (5) days written notice to the parties
involved to determine if any penalties should attach for the failure of a person to
testify.
(e) If any non-governmental party to the hearing requests an adjournment, the
commissioner or agency head who convened the hearing may, upon granting the
adjournment, suspend any contract, lease, permit, or license pending the final
determination pursuant to paragraph (g) below without the City incurring any penalty
or damages for delay or otherwise.
(f) The penalties which may attach after a final determination by the commissioner or
agency head may include but shall not exceed:
(1) The disqualification for a period not to exceed five (5) years from the
date of an adverse determination for any person, or any entity of
30
Execution Cupy
Ihl agreement - R 10 end Dtsign~ue<I Areas
which such person was a member at the time the testimony was
sought, from submitting bids for, or transacting business with, or
entering into or obtaining any contract, lease, permit or license with or
from the City. and /or
(2) The cancellation or termination of any and all such existing City
contracts, leases, permit, or licenses that the refusal to testify
concerns and that have not been assigned as permitted under this
agreement, nor the proceeds of which pledged, to an unaffiliated and
unrelated institutional lender for fair value prior to the issuance of the
notice scheduling the hearing, without the City incurring any penalty or
damages on account of such cancellation or termination; moneys
lawfully due for goods delivered, work done, rentals, or fees accrued
prior to the cancellation or termination shall be paid by the City.
(g) The commissioner or agency head shall consider and address in reaching his or
her determination and in assessing an appropriate penalty the factors in
paragraphs (1) and (2) below. Ha or she may also consider, if relevant and
appropriate, the criteria established in paragraphs (3) and (4) below in addition to
any other information which may be relevant and appropriate:
(1) The party's good faith endeavors or lack thereof to cooperate fully and
faithfully with any governmental investigation or audit, including but
not limited to the discipline, discharge, or disassociation of any person
failing to testify, the production of accurate and complete books and
records, and the forthcoming testimony of alt other members, agents,
assignees or fiduciaries whose testimony is sought.
(2) The relationship of the person who refuses to testify to any entity that
is a party to the hearing, including, but not limited to, whether the
person whose testimony is sought has an ownership interest in the
entity and/or the degree of authority and responsibility the person has
within the entity.
(3) The nexus of the testimony sought to the subject entity and its
contracts, leases, permits or licenses with the City.
(4) The effect a penalty may have on an unaffiliated and unrelated party
or entity that has a significant interest in an entity subject to penalties
under (~ above, provided that the party or entity has given actual
notice to the commissioner or agency head upon the acryuisition of the
interest, or at the hearing called for in (d) above gives notice and
proves that such interest was previously acquired. Under either
circumstance the party or entity musl present evidence at the hearing
demonstrating the potential adverse impact a penalty will have on
such person or entity.
3!
l;secutiai Copy
IH Agreement I210 and DesignxleJ r\tens
(h)
(1) The term "license" or "permit" as used herein shall be defined as a

license, permit, franchise or concession not granted as a matter of
right.
(2) The term "person" as used herein shall be defined as any natural
person doing business alone or associated with another person or
entity as a partner, director, officer, principal or employee.
(3) The term "entity" as used herein shall be defined as any firm,
partnership, corporation, association, or person that receives
moneys, benefits. licenses, leases, or permits from or through the
city or otherwise transacts business with the City.
(4) The term "member" as used herein shall be defined as any person
in association with another person or entity as a partner, officer,
principal or employee.
(i) In addition to and notwithstanding any other provisions of this Agreement the Commissioner
or agency head may in his or her sole discretion terminate this Agreement upon not less
than three (3) days written notice in the event the contractor fails to promptly report in writing
to the Commissioner of Investigation of the City of New York any solicitation of money,
goods, requests for future employment or other benefit or thing of value, by or qn behalf of
any employee of the City or other person, firm, corporation or entity for any purpose which
may be related to the proairement or obtaining of this Agreement by the Contractor, or
affecting the performance of this Agreement.
J2
r.r~~~t~~~ c~Pr
ld Agr~emenC - R 10 and Designamcl i\re~~s
EXHIBIT J
SOURCES AND USES OF FINANCING
;~
_~
Total Units: 17
Inclusionary Housing Units: 17
Sources &Uses
ConstruRion Sources
Bank Loan
Developer Equity
DevetooerFee
Total Sources
Permanent Sources
First Bank Mortgage
Inclusionary Housing Proceeds
Deferred Developer's fee
Total Sources
Uses
Acquisition Cost
Construct4on Cost
Soft Cost
Developer Fee
Tota(Uses
Exhibit 1
Hcecution Copy
11I Agrceincnt - R 10 ;md Designared Arens
EXHIBIT K
AFFORDABLE HOUSING SUBORDINATION AGREEMENT
z-~
Execution Copy
THIS SUBORDINATION AND NON-gISTURBANCE AGREEMENT ("Agreement'), made as of
a national banking
this 30th day of December, 2013, by
association, having an office at
("Mortgagee" or "lender"), in favor of THE CITY OF NEW YORK, (the "City") a municipal
corporation acting by and through its DEPARTMENT OF HOUSING PRESERVATION AND
DEVELOPMENT, having an office at 100 Gold Street, New York. New York 10038("HPD")
WHEREAS, Mortgagee holds a certain mortgage or mortgages dated of even date herewith, as
follows a: (a) Building Loan Mortgage, Assignment of Leases and Rents and Security Agreement,
); and (b) Project Loan Mortgage,
dated of even date herewith, in the principal amount of ($
Assignment of Leases and Rents and Security Agreement, in the principal amount of[$ J each
made by West of Ninth Limited Partnership, a limited partnership formed pursuant to the laws
of the State of New York ("Applicant' or "Borrower") and West of Ninth Housing Development
Fund Corporation ("HDFC") a New York not-for-profit corporation organized pursuant to Article
XI of the Private Housing Finance Law of the State of New York and Section 402 0( the Not-forProfit Corporation Law of the State of New York,("Owner") in favor of Lender to secure, among
other things, the aggregate principal sum of
or so much thereof as may be advanced pursuant thereto, an
interest, (collectively the "Mortgage(s)") covering the premises described in Schedule A
annexed hereto and incorporated herein (the "Premises"); and
WHEREAS, Owner is the owner of the legal interest and Applicant is owner of the beneficial
interest, pursuant to the Declaration of Interest and Nominee Agreement, dated as of
September 16, 2013, between Owner and Applicant, in the Premises, and recorded on October
15, 2013, in the Office of the City Register for the County of New York ("City Register') as
CRFN 2013000425720 as amended pursuant to that certain Amended and Restated
Declaration of Interest and Nominee Agreement dated December 30, 2013 and, upon
execution, to be recorded City Register; and
WHEREAS, HPD, Owner and Applicant have entered into that certain Regulatory Agreement
(the "Regulatory Agreement") dated of even date herewith, which Regulatory Agreement is
intended to be recorded against the Premises immediately following execution and delivery
thereof; and
WHEREAS, the Regulatory Agreement was entered into under the Inclusionary Housing
Program, which is governed by Section 23-90 of the New York City Zoning Resolution (the
"Resolution") and the Guidelines for Affordable Housing Plans (the "Guidelines")(the G~ddelines
and the Resolution are collectively referred to as the "Program"); and
WHEF2EAS, the Regulatory Agreement provides that neither Applicant nor Owner shall
mortgage or otherroise encumber their interest in the Premises or the Regulatory Agreement
without the prior writton consent of HPD and That, if HPD consents to a mortgage loan, the
lender must subordinate the loan to all of the terms and conditions of the Regulatory
Agreement; and
WHEREAS, Applicant and Owner have entered into the Mortgage and other instruments
evidencing or securing obligations of fhe Premises to Mortgagee (collectively, "Other Loan
Documents"; the Mortgage and the Other Loan Documents are referred to, collectively, as the
"LOan Documents'); and
Inclusionary Housing
S~anUard form SNDA
Execution Copy
WHEREAS, HPD has consented to the Loan Documents on condition that Mortgagee
subordinate the Loan Documents to all the terms and conditions of the Regulatory Agreement
in the manner hereinafter described.
NOW TNEi2EFORE, for good and valuable consideration, the receipt whereof is hereby
acknowledged, Mortgagee hereby represents to and agrees with HPD, notwithstanding any
contrary term, provision, agreement, covenant, warranty, andlor representation contained or
implied in any Loan Documents of any other document executed in connection with the
Premises, that:
The Loan Documents are and shall continue to be subject and subordinate to the terms,
covenants, agreements, and conditions of the Regulatory Agreement.
2,
As used in this Agreement (a) the term "Mortgage' shall refer to any amendments,
replacements, substitutions, extensions, modifications, or renewals thereof, and (b) the
term "Mortgagee" shall include the Mortgagee's successors and assigns.
3.
As used in this Agreement, the phrase "subject and subordinate" means that:
4.
(a)
to the extent there are any inconsistencies between the provisions of the
Regulatory Agreement and any provisions of the Loan Documents, the
provisions of the Regulatory Agreement shall take priority over the inconsistent
provisions of the Loan Documents, except as provided herein; and
(b)
If Mortgagee or if any person or entity becomes the owner of the Premises

(including, if the Premises is dE~fi~ed as a leasehold interest as well as a fee
interest, the owner of such leasehold interest) by foreclosure, conveyance in lieu
of foreclosure, or otherwise (the "New Owner"), (i) the Regulatory Agreement
shaft continue in full force and effect and the Mortgagee and New Owner shall
have no right to disturb the rights of HPD under the Regulatory Agreement, (li)
HPD shall not be named as a defendant in any action or proceeding to foreclose
the Mortgage or otherwise enforce the Mortgagee's or New Owner's rights
thereunder, except as set forth below, and (iii) the Premises shall be subject to
the Regulatory Agreement in accordance with the provisions thereof; provided,
however, that Mortgagee and New Owner shall not be liable for any act or
omission of Applicant or bound by any subsequent amendment of or modification
to the Reyulatory Agreement without its written consent. Subject to the
foregoing, nothing contained herein shall prevent the Mortgagee or New Owner
from naming HPD in any foreclosure or other action or proceeding initiated by
the Mortgagee or New Owner pursuant to the Mortgage to the extent necessary
under applicable law in order for the Mortgagee or New Owner to avail itself of
and complete the foreclosure or other remedy.
Upon a deGaraGon of default under the fiurp.i;aiory Ayr~~emenl, IiPC) st~ali !3iva Mort~'~ayee
notice thereof by facsimile, hand delivery or reputable ovrrnighl r:uurier and a reasonabir;
opportunity to cure (if such default can be ci.~red), provided, however,(hat Mcxtya~ee shall
have no obligation to cure any such defa~tlt. If D~ortgayee cures the clefaull ~lurinry sncYi
cure period (if 2ny) or has commenced to cure the specified default within such period and
is diligently pursuing.. completion of such cure, or has commenced the exercise of
remedies under the Loan Documents within such period, HPD shall not exercise any of the
Inclusionery 7-i~t~sinr~
Standard form SNDA
Execution Copy
remedies under Section 18(b) of fhe Regulatory Agreement by reason of such default
.Nothing herein shall limit HPD's right to consent to a replacement manager pursuant to
Paragraph 6 herein.
5
If HPD freezes the Operating Accounts) pursuant to Paragraph 18(b) of the Regulatory
Agreement, HPD will allow Mortgagee to use funds therein to make payments due under
the Loan Documents, provided that there are sufficient funds in the Operating Accounts)
to pay far reasonable and customary operating expenses for the Premises. Mortgagee
hereby acknowledges that it has no interest in or rights to any funds held in the Special
Reserve Fund Accounts pursuant to the Regulatory Agreement.
6.
Notwithstanding anything contained in the Regulatory Agreement or the loan Documents,

neither HPD nor Mortgagee may assume responsibility for management of the Premises
or designate a third party to manage the Premises without the consent of the other. if, in
the exercise of its remedies under the Regulatory Agreement, HPD notifies Mortgagee of
its intention to install a replacement manager of the Premises, then Mortgagee's consent
to such manager shall not be unreasonably withheld or delayed. If, in the exercise of its
remedies under the Loan Documents, Mortgagee notifies HPD of its intention to install a
replacement manager of the Premises, then HPD's consent to such manager shall not be
unreasonably withheld or delayed.
7.
Upon a casualty to a building on the Premises,

(a)
where the repair or reconstruction cost is more than thirty-five percent (35%) of
the replacement value of a building on the Premises, Mortgagee shall have the
right to determine whether insurance proceeds are applied for the reconstruction
or repair of the Premises or towards repayment of the Mortgage, and
(b)
where the repair or reconstruction cost is less than or equal to thirty-five percent
(35%) of the replacement value of the Premises, HPD shall have the right to
determine how insurance proceeds shall be applied. HPD shall make such
determination within sixty (60) days after HPD is notified of the occurrence of the
casualty. f(HPD determines in such case not to apply the insurance proceeds for
the reconstruction or repair of the Premises, the insurance proceeds shall be
retained by Mortgagee to the extent of sums then due under the Mortgage.
This paragraph supersedes any contrary provisions in the Regulatory Agreement or

Loan Documents.
No failure to exercise and no delay in exercising, on the part of HPD, of any right, power
or privilege under this Agreement shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, power or privilege operate as a waiver of any other right,
power or privileye under this Agreement.
9
The covenants, provisions and terms of this Agreement and the rights and obligations of
the parties hereunder shall be governed by and construed and interpreted in accordance
with the laws of the State of New York, and shall be binding upon and inure to the
benefit of Mor~yagee, HPD, and their respective successors, transferees, and assigns.
Inc~usionary Fbusing
Standard form SNDA
Execution Copy
10.
Neither Phis Agreement nor any provision hereof (including this paragraph) may 6e
changed, modified, amended, waived, supplemented, discharged, abandoned, or
terminated orally except by an instrument in writing signed by the party against whom
enforcement of the change, modification, amendment, waiver, discharge, abandonment,
or termination is sought.
11.
Notices. All notices, approvals, requests, waivers, consents or other communications

given or required to be given under this Agreement shall be in writing and sent or
transmitted as follows:
If to HPD, in duplicate, fo:
100 Gold Street
New York, NY 10038
Attn_ Director, inclusionary Housing Program
Facsimile (212) a63-5899
and:

100 Gold Street
New York, NY 10038
Attn: General Counsel
Facsimile (212) 863-8375
if to lender, in duplicate, to:
with a copy to:
with a copy to:
With a copy to.
Inclusionary Housing
Standard loan SN~Fl
Execution Copy
Attention:
Notices must be hand delivered, transmitted via facsimile, or by overnight delivery (e.g.,
FEDEX)or sent by certified or registered U.S. mail, return receipt requested. Notice shall be
deemed to have been given upon (i) delivery if sent by hand delivery, U.S. mail or overnight
delivery, and (ii) confirmed receipt, if sent by facsimile, to both the addressee and the person
entitled to receive a copy thereof.
Recordation. This Agreement shall be recorded against the Premises immediately after
12.
the execution hereof, in the Office of the City Register for fhe County in which the Premises are
located and the Applicant shall pay all required fees and taxes in connection therewith.
Counterparts. This Subordination Agreement may be executed in one or more
13,
counterparts, each of which shall constitute an original and alI of which shall constitute one
agreement.
[No further text -signatures on the next page]
Inr,~usionary blousing
Standard form SNDA
Execution Copy
IN WITNESS WHEREOF, the City of New York, acting by and through its Department of Nousing
Preservation and Development has caused this Subordination Agreement to be signed by its duly
authorized commissioner, and Lender has caused this Subordination Agreement to be duly signed
by a duly authorized officer, as of the day and year first above written.
THE CITY OF NEW YQRK
Acting by and through its DEPARTMENT OF HOU8ING
PRESERVATION AND DEVELgPMENT
Miriam Coibn
Assistant Commissioner
inclusionary Housing
Standard tone SNDA
Execution Copy
ACKNOWLEDGEMENTS
STATE OF NEW YORK
)
ss.:
COUNTY OF NEW YORK)
On the 27t of December in the year 2013 before me, the undersigned, personally
appeared Miriam Co13n, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument and
acknowledged to me that she executed the same in her capacity, and that by her signature on
the instrument, the individual, or the person upon behalf of which the individual acted, executed
the instrument.
Notary Public
STATE OF NEW YORK
)
ss.:
COUNTY OF NEW YORK )
On the
of December in the year 2013 before me, the undersigned, a Notary Public in and
for said State, personally appeared,personally known to me oc proved to me on
the basis of satisfactory evidence to be the individual whose name is subscribed to the within
instrument and acknowledged to me that she executed the same in her capacity, and that by
her signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.
Notary Public
Inciusionary I-busing
Standard form SN~A
Execution Copy
SCHEDUL
PROPERTY DESCRIPTION
improvements thereon
All those certain plots, pieces and parcels of land, with the buildings and
and State of New
City
the
in
.
Manhattan
of
borough
erected, situate, lying and being in the
York, designated as:
Block
Lot
County:
Address:
Inclusionary Housinry
Standard form SNDA
Execution Copy
SUBORDINATION AGREEMENT
by and between
7HE CITY OF NEW YORK
-and-
The property affected by this written instrument dies within the;
8 oc
County:
New York
Address
RECORD AND RETURN TO:
Indueionary Housing
Standard form SNUA
Gsccutiun ~uPY
II I Agreement - Ii 10 and Designn~ed Areas
BETNEEN
THE CITY OF NEW YORK
AND
AND
Lot s
Countv: New York
RECORD ANp RETURN TO:

Louise Carroll, Esq.
Department of Housing Preservation
and Development
Office of Legal Affairs
100 Gold Street, Room No. R-U8
New York, NY 10038
35
DOCUMUENT 15
TITLE 28 RCNY, CHAPTER 32 (421-G)
-15-
Page 1 of 15
Lexis Advance
Research
Document:NY CLS RPTL 421-g
1~'L~I~y:73:~~3~Q'I
Copy Citation
Current Through 2015 released chapters 1-SS9

Exemptions
Article 4
Title 2 Private Property
421-g. Exemption from local taxation of certain multiple

dwellings
1. When used in this section:
(a) "Aggregate floor area" shall mean the sum of the gross areas of the several
floors of a building, measured from the exterior faces of exterior walls or from the
center lines of walls separating two buildings.
(b) "Applicant' shall mean any person obligated to pay real property taxes on the
property for which an exemption from or abatement of real property taxes under this
section is sought or in the case of exempt property, the record owner or lessee
thereof.
(c) "Benefit period" shall mean the period of time when a recipient is eligible to
receive benefits pursuant to subdivisions two and three of this section.
(d) "Certificate of eligibility" shall mean the document issued by the department of
housing preservation and development certifying a tax lot as eligible for benefits
(e)`"Commencement of conversion"shah mean the tlate of issuance by the
department of buildings of a building permit for the conversion of anon-residential
building to an eligible multiple dwelling, provided however that such permit is issued
on or after July first, nineteen hundred ninety-five and no later than June thirtieth,
two thousand 1 six.
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(f) "Completion of conversion" shall mean the date of issuance by the department of
buildings of a temporary or permanent certificate of occupancy for the portion of the
building for which an application for a certificate of eligibility is filed.
(g) "Eligible area" shall mean any area of a city having a population of one million or
more persons in which, subject to the applicable law governing zoning in such city,
tax benefits pursuant to this section for eligible multiple dwellings are available,
provided, however, that in the city of New York, subject to the applicable law
governing zoning in such city, the eligible area in which tax benefits pursuant to this
section for eligible multiple dwellings are available shall mean the area in the borough
of Manhattan bounded by Murray Street on the north starting at the intersection of
West Street and Murray Street; running easterly along the center line of Murray
Street; connecting through City Hali Park with the center line of Frankfort Street and
running easterly along the center lines of Frankfort and Dover Streets to the
intersection of Dover Street and South Street; running southerly along the center line
of South Street to Peter Minuit Plaza; connecting through Peter Minuit Plaza to the
center line of State Street and running northwesterly along the center line of State
Street to the intersection of State Street and Battery Place; running westerly along
the center line of Battery Place to the intersection of Battery Place and West Street;
and running northerly along the center line of West Street to the intersection of West
Street and Murray Street.
(h) "Eligible multiple dwelling" shall mean a class A multiple dwelling, except a hotel,
created from conversion of anon-residential building, provided, however, that such
multiple dwelling is located within an eligible area, and provided further, however,
that the aggregate floor area of commercial, community facility and accessory use
space within such multiple dwelling does not exceed twenty-five per centum of the
aggregate floor area of such multiple dwelling.
(i) "Non-residential building" shall mean a structure or portion of a structure having
at least one floor, a roof and at least three walls enclosing all or most of the space
used in connection with the structure or portion of the structure, which has a
certificate of occupancy for commercial, manufacturing or other non-residential use
for not less than ninety per centum of the aggregate floor area of such structure or
portion of such structure, or other proof of such non-residential use as is acceptable
to the department of housing preservation and development.
(j) "Person" shall mean an individual, corporation, limited liability company,
partnership, association, agency, trust, estate, foreign or domestic government or
subdivision thereof, or other entity.
(k} "RecipienP'sFiall mean en applicant to whom a certificate of eligibility has been
issued pursuant to this section, or the successor in interest of such applicant,
provided that where a person who has entered into a lease or purchase agreement
with the owner or lessee of exempt property has been a co-applicant, such person or
the successor in interest of such person shall be the recipient.
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z.
(a) Within a city having a population of one million or more persons, a tax lot
containing an eligible multiple dwelling that is the subject of a certificate of eligibility
issued pursuant to this section shall be exempt from real property taxation for local
purposes, other than assessments for local improvements, on the amount of the
assessed value attributable exclusively to the physical improvement, for a period not
to exceed twelve consecutive years beginning in the tax year immediately following
the issuance of a certificate of eligibility, so long as such eligible multiple dwelling is
used or held out for use for dwelling purposes, except as otherwise provided herein.
During the first eight years, the exemption shall equal the amount of the assessed
value attributable exclusively to the physical improvement. During the ninth year, the
exemption shall equal eighty per centum of such amount; during the tenth year, the
exemption shall equal sixty per centum of such amount; during the eleventh year, the
exemption shall equal forty per centum of such amount; and during the twelfth year,
the exemption shall equal twenty per centum of such amount.
The following table shall illustrate the computation of the exemption pursuant to
this paragraph:
Tax Year Percentage of
Following
Date of
Issuance
of
Applicable
Certificate Exemption
of
Eligibility
1
100%
100/a
100%
100%
100%
100%
100%
100%
80%
10
60%
11
40%
12
20%
(b) NotwiCfistandiny paragraph (a) of this subdivision; within a city having a

population of one million or more persons, a tax lot containing an eligible multiple
dwelling that is the subject of a certificate of eligibility issued pursuant to this section
and that is in a building that, in accordance with procedures set forth in local law, was
designated as a landmark before completion of conversion shall be exempt from real
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property taxation for local purposes, other than assessments for local improvements,
on the amount of the assessed value attributable exclusively to the physical
improvement, for a period not to exceed thirteen consecutive years beginning in the
tax year immediately following the issuance of a certificate of eligibility, so long as
such eligible multiple dwelling is used or held out for use for dwelling purposes,
except as otherwise provided herein. During the first nine years, the exemption shall
equal the amount of the assessed value attributable exclusively to the physical
improvement. During the tenth year, the exemption shall equal eighty per centum of
such amount; during the eleventh year, the exemption shall equal sixty per centum of
such amount; during the twelfth year, the exemption shall equal forty per centum of
such amount; and during the thirteenth year, the exemption shall equal twenty per
centum of such amount.
The following table shall illustrate the computation of the exemption pursuant to
this paragraph:
Following
Date of
Issuance
of
Applicable
Certificate Exemption
of
Eligibility
1
100%
100%
100%
100%
100%
100/n
100%
100%
100%
10
80%
11
60%
12
40%
13
20%
2-a. Within a city having a population of one million or more persons, a tax lot
containing anon-residential building shall be exempt from real property taxation for local
purposes, other than assessments for local improvements, on the amount of the assessed
value attributable exclusively to the physical improvement, for the tax year immediately
following the first taxable status date that meets the following two conditions: (i) such
taxable status date occurs after the commencement of conversion and (ii) such taxable
status date is the first taxable status date on which an increase in assessed value
attributable to such physical improvement has been assessed. Notwithstanding the
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foregoing sentence, no such exemption shall be granted if completion of conversion

occurs before the fifteenth day of April following such taxable status date. In the event
that an exemption granted pursuant to this subdivision is not reflected on the final
assessment roil prepared on the basis of such taxable status date, the commissioner of
finance is hereby authorized to refund or credit in the fiscal year relating to such taxable
status date or in the next following fiscal year an amount equivalent to the exempt
amount multiplied by the applicable tax rate. In addition to any other basis for revocation
of an exemption granted pursuant to this section, the exemption granted pursuant to this
subdivision to anon-residential building shall be revoked if such building is not converted
into an eligible multiple dwelling that is the subject of a certificate of eligibility issued
(a) Within a city having a population of one million or more persons, in addition to
the benefits set forth in subdivision two of this section, a tax lot containing an eligible
multiple dwelling that is the subject of a certificate of eligibility issued pursuant to this
section shall receive an abatement of real property taxes for a period not to exceed
fourteen consecutive years beginning in the tax year immediately following the
issuance of a certificate of eligibility, so long as such eligible multiple dwelling is used
or held out for use for dwelling purposes, except as otherwise provided herein. During
the first year, the abatement shall be equal to the amount of the real property tax
that would have been due but for such abatement, provided, however, that if the tax
lot, during the first year of such abatement, was fully or partially exempt from real
property taxes, other than pursuant to the exemption authorized by this section, then
the abatement shall equal the amount of the real property tax that would have been
due but for such full or partial exemption. During the second through tenth years, the
abatement shall equal one hundred per centum of such amount; during the eleventh
year, the abatement shall equal eighty per centum of such amount; during the twelfth
year, the abatement shall equal sixty per centum of such amount; during the
thirteenth year, the abatement shall equal forty per centum of such amount; and
during the fourteenth year, the abatement shall equal twenty per centum of such
amount.
The following table shall illustrate the computation of the abatement pursuant to
this paragraph:
Following
Date of
Issuance
of
Applicable
Certificate Abatement
of
Eligibility
1
100%
100%
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3
a
s
a
~
8
9
10
11
12
13
14
ioo~ro
ioo~io
ioo~io
ioo~ra
ioo~io
100%
100%
100%
80%
60/a
40%
20%
(b) Notwithstanding paragraph (a) of this subdivision, within a city having a

population of one million or more persons, in addition to the benefits set forth in
subdivision two of this section, a tax lot containing an eligible multiple dwelling that is
the subject of a certificate of eligibility issued pursuant to this section and that is in a
building that, in accordance with procedures set forth in local law, was designated as
a landmark before completion of conversion shall receive an abatement of real
property taxes for a period not to exceed fifteen consecutive years beginning in the
tax year immediately following the issuance of a certificate of eligibility, so long as
such eligible multiple dwelling is used or held out for use for dwelling purposes,
except as otherwise provided herein. During the first year, the abatement shall be
equal to the amount of the real property tax that would have been due but for such
abatement, provided, however, that if the tax lot, during the first year of such
abatement, was fully or partially exempt from real property taxes, other than
pursuant to the exemption authorized by this section, then the abatement shall equal
the amount of the real property tax that would have been due but for such full or
partial exemption. During the second through eleventh years, the abatement shall
equal one hundred per centum of such amount; during the twelfth year, the
abatement shall equal eighty per centum of such amount; during the thirteenth year,
the abatement shall equal sixty per centum of such amount; during the fourteenth
year, the abatement shall equal forty per centum of such amount; and during the
fifteenth year, the abatement shall equal twenty per centum of such amount.
The following table shall illustrate the computation of the abatement pursuant to
this paragraph:
Following
Issuance
of
Certificate Abatement
of
Eligibility
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i
z
3
a
s
G
7
8
9
10
11
12
13
14
15
ioo~ro
ioo~ro
ioo~io
ioo~io
iao~ro
100/a
100/a
100%
100%
100%
100%
80%
60%
40%
20%
(c) If, as a result of application to the tax commission or a court order or action by
the department of finance, the billable assessed value is reduced, the department of
finance shall recalculate the abatement utilizing such reduced billable assessed value.
The amount equal to the difference between the abatement originally granted and the
abatement as so recalculated shall be deducted from any refund otherwise payable or
remission otherwise due as a result of such reduction in billable assessed value, and
any balance of such amount remaining unpaid after making any such deduction shall
be paid to the department of finance within thirty days from the date of mailing by
the department of finance of a notice of the amount payable. Such amount payable
shall constitute a tax lien on the eligible multiple dwelling as of the date of such notice
and, if not paid within such thirty-day period, penalty and interest at the rate
applicable to delinquent taxes on such eligible multiple dwelling shall be charged and
collected on such amount from the date of such notice to the date of payment.
4. If the aggregate floor area of commercial, community facility and accessory use space
exceeds twelve per centum of the aggregate floor area of any building receiving benefits
pursuant to this section, the benefits provided pursuant to this section shall be equal to
the amount provided by subdivisions two, two-a and three of this section, reduced by a
percentage equal to the difference between the per centum of the aggregate floor area
that is commercial, community facility and accessory use space and twelve per centum,
provided, however, that if the aggregate floor area of such building contains more than
twenty-five per centum of commercial, community facility and accessory use space no
benefits shall be available pursuant to this section. In ca/cu/ating aggregate f/oorarea for
purposes of subdivision two-a of this section, "aggregate floor area"shall mean the
intended aggregate floor area after completion of conversion, as set forth in the building
plans filed with the department of buildings. If, after completion of conversion, the actual
aggregate floor area of commercial, community facility and accessory use space is greater
than the intended aggregate floor area of such space and the actual aggregate floor area
of such space exceeds twelve per centum of the actual aggregate floor area, then the
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benefits granted pursuant to subdivision two-a of this section shall be revoked or partially
revoked, as required, to reflect the actual aggregate floor area of such space. If a building
contains a separately assessed non-residential parcel, the aggregate floor area of such
parcel shall not be considered in calculating the aggregate floor area of commercial,
community facility and accessory use space relevant to determining eligibility for, and
amount of, benefits pursuant to this section.For the purposes of this section, accessory
use space shall not include home occupation space or accessory parking space located not
more than twenty-three feet above the curb level .
5. Benefits under this section may not be combined with benefits under any other section
of this chapter for the same tax lot.
6. Notwithstanding the provisions of any local law for the stabilization of rents in multiple
dwellings or the emergency tenant protection act of nineteen seventy-four, the rents of
each dwelling unit in an eligible multiple dwelling shall be fully subject to control under
such local law, unless exempt under such local law from control by reason of the
cooperative or condominium status of the dwelling unit, for the entire period for which the
eligible multiple dwelling is receiving benefits pursuant to this section, provided, however,
that for purposes of this subdivision, an eligible multiple dwelling receiving benefits
pursuant to this section whose benefits are suspended, terminated or revoked by the
department of housing preservation and development shall be deemed to be receiving
benefits for the length of time such benefits would have been received if such benefits
had not been suspended, terminated or revoked, or for the period such local law is in
effect, whichever is shorter. Thereafter, such rents shall continue to be subject to such
control, except that such rents that would not have been subject to such control but for
this subdivision, shall be decontrolled if the landlord has included in each lease and
renewal thereof for such unit for the tenant in residence at the time of such decontrol a
notice in at least twelve point type informing such tenant that the unit shall become
subject to such decontrol upon the expiration of benefits pursuant to this section.
7.
(a) In anon-residential building of less than one hundred thousand square feet of
aggregate floor area, completion of conversion to an eligible multiple dwelling of at
least seventy-five per centum of the aggregate floor area of such non-residential
building must take place within three years of commencement of conversion.
(b) Only the aggregate floor area for which conversion is completed within such
three-year period shall be considered in calculating the exemption and abatement
provided pursuant to this section.
(c) In anon-residential building ofJess than one hundred thousand square feet of
aggregate floor area containing a separately assessed non-residential parcel, the
aggregate floor area of such separately assessed non-residential parcel shall not be
considered in determining whether seventy-five per centum of the aggregate floor
area of such non-residential building has been converted to an eligible multiple
dwelling.
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(a) In anon-residential building of one hundred thousand square feet or more of

aggregate floor area, completion of conversion to an eligible multiple dwelling of at
least seventy-five per centum of the aggregate floor area of such non-residential
building must take place within five years of commencement of conversion, provided,
however, that completion of conversion to an eligible multiple dwelling of at least fifty
per centum of the aggregate floor area of such non-residential building must take
place within three years of commencement of conversion, and provided further that
proof of completion of partial conversion within three years shall be submitted with an
application for a certificate of eligibility for full exemption and abatement benefits
(b) In anon-residential building of one hundred thousand square feet or more of
aggregate floor area in which completion of conversion to an eligible multiple dwelling
of at least fifty per centum of the aggregate floor area of such non-residential building
has taken place within three years of commencement of conversion, and which is the
subject of a certificate of eligibility for partial exemption and partial abatement issued
pursuant to this section, partial exemption and partial abatement of real property
taxes shall be available, as follows: (i) partial exemption benefits shall equal the
amount of the assessed value attributable exclusively to the physical improvement
resulting from the conversion of at least fifty per centum of the aggregate floor area
of the non-residential building that has received a temporary certificate of occupancy
and (ii) partial abatement benefits shall be equal to the amount of the real property
tax that would have been due during the first year of such partial abatement but for
such partial abatement upon the amount of square feet of aggregate floor area of the
non-residential building that has received a temporary certificate of occupancy for
conversion of at least fifty per centum of the aggregate floor area of the nonresidential building, provided, however, that if the tax lot, during the first year of such
partial abatement was fully or partially exempt from real property taxes, other than
pursuant to the exemption authorized by this section, then the partial abatement shall
be equal to the amount of real property tax that would have been due upon such
amount of square feet of aggregate floor area of the non-residential building but for
such full or partial exemption. Nothing in this paragraph shall be deemed to require
an applicant to apply for partial exemption or abatement benefits pursuant to this
section, provided, however, that if an applicant applies for a certificate of eligibility for
such benefits, he or she shall submit proof of completion of partial conversion with
the application for such certificate.
(c) In anon-residential building of one hundred thousand square feet or more of
aggregate floor area only the aggregate floor area for which conversion is completed
within the five-year period specified in paragraph (a) of this subdivision or, in the
case of partial exemption from or partial abatement of real property taxes, the threeyear period specified in paragraph (b) of this subdivision, shall be considered in
calculating the exemption and abatement provided pursuant to this section, provided,
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however, that neither partial exemption from nor partial abatement of real property
taxes shall be available for commercial, community facility or accessory use space.
(d) In anon-residential building of one hundred thousand square feet or more of
aggregate floor area containing a separately assessed non-residential parcel, the
aggregate floor area of such separately assessed non-residential parcel shall not be
considered in determining whether seventy-five per centum or, in the case of partial
exemption from or partial abatement of real property taxes, fifty per centum of the
aggregate floor area of such non-residential building has been converted to an eligible
multiple dwelling.
(e) Any partial exemption from or partial abatement of real property taxes granted
pursuant to this section for anon-residential building of one hundred thousand square
feet or more of aggregate floor area shall be revoked if completion of conversion to an
eligible multiple dwelling of at least seventy-five per centum of the aggregate floor
area of such non-residential building has not taken place within five years of
commencement of conversion.
(f) The time periods specified in subdivisions two and three of this section shall begin
upon receipt of any partial exemption from or partial abatement of real property taxes
for anon-residential building of one hundred thousand square feet or more of
aggregate floor area.
(a) An application for a certificate of eligibility for full exemption and abatement
benefits pursuant to this section shall be filed with the department of housing
preservation and development no later than close of business day on the thirty-first
day of March immediately following the first taxable status date following completion
of conversion. If a certificate of eligibility for partial exemption and abatement
benefits pursuant to this section is sought by an applicant, an application for a
certificate of eligibility for such benefits shall be filed with the department of housing
preservation and development no later than close of business day on the thirty-first
day of March immediately following the first taxable status date following completion
of partial conversion. The department of housing preservation and development shall
issue a certificate of eligibility for benefits upon determining that the applicant
satisfies the requirements of this section.
(b) In addition to any other information required by the department of housing
preservation and development, an application for a certificate of eligibility for benefits
under Yhis section shall state that the applicant agrees to comply with and be subject
to rules promulgated by the department of finance and the department of housing
preservation and development to secure compliance with this section and ail
applicable local, state and federal laws. Such application shall also certify that all
taxes, water charges and sewer rents currently due and owing on the property which
is the subject of the application have been paid or are currently being paid in timely
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installments pursuant to written agreement with the department of finance or other

appropriate agency.
(c) The burden of proof shall be on the applicant to show by clear and convincing
evidence that the requirements for granting benefits under this section have been
satisfied. The department of housing preservation and development shall have the
authority to require that statements in connection with the application shall be made
under oath.
(d) The department of finance and the department of housing preservation and
development may promulgate rules to carry out the purposes of this section,
including, but not limited to, rules providing for such administrative charges or fees as
are necessary to defray expenses in administering the benefit program provided
pursuant to this section and rules defining, or expanding upon the definition of, terms
used in this section.
10. Any tax lot which is partly located inside the eligible area shall be deemed to be
entirely located inside such area.
11. No benefits pursuant to this section shall be granted for any conversion to an eligible
multiple dwelling unless the applicant shall file, together with the application for a
certificate of eligibility, an affidavit setting forth the following information:
(a) a statement that within the seven years immediately preceding the date of
application for a certificate of eligibility, neither the applicant, nor any person owning
a substantial interest in the property as defined in paragraph (c) of this subdivision,
nor any officer, director or general partner of the applicant or such person was finally
adjudicated by a court of competent jurisdiction to have violated section two hundred
thirty-five of the real property law or any section of article one hundred fifty of the
penal law or any similar arson law of another jurisdiction with respect to any building,
or was an officer, director or general partner of a person at the time such person was
finally adjudicated to have violated such law; and
(b) a statement setting forth any pending charges alleging violation of section two
hundred thirty-five of the real property law or any section of article one hundred fifty
of the penal law or any similar arson law of another jurisdiction with respect to any
building by the applicant or any person owning a substantial interest in the property
as defined in paragraph (c) of this subdivision, or any officer, director or general
partner of the applicant or such person, or any person for whom the applicant or
person owning a substantial interest in the property is an officer, director or general
partner.
(c) "Substantial interest" as used in this subdivision and subdivision twelve of tfiis
section shall mean ownership and control of an interest of ten per centum or more in
property or any person owning a property.
12.
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(a) If any person described in the statement required by paragraph (b) of

subdivision eleven of this section or paragraph (b) of this subdivision is finally
adjudicated by a court of competent jurisdiction to be guilty of any charge listed in
such statement, the recipient shall cease to be eligible for benefits pursuant to this
section and shall pay, with interest, any taxes for which benefits were claimed
(b) The recipient shall, on the certificate of continuing use, state whether any
charges alleging violation by the recipient or any person owning a substantial interest
in the property, or any officer, director or general partner of the recipient or person
owning a substantial interest in the property, or any person for whom the recipient or
person owning a substantial interest in the property is an officer, director or general
partner, of section two hundred thirty-five of the real property law or any section of
article one hundred fifty of the penal law or any similar arson law of another
jurisdiction, are pending. For purposes of this paragraph, "substantial interest" shall
have the same meaning as set forth in paragraph (c) of subdivision eleven of this
section.
13. In addition to any other qualifications for benefits pursuant to this section, an
applicant must be:
(a) obligated to pay real property tax on the property for which benefits are sought,
whether such obligation arises because of record ownership of such property, or
because the obligation to pay such tax has been assumed by contract; or
(b) the record owner or lessee of property which is exempt from real property
taxation who has entered into an agreement to sell or lease such property to another
person. Such person shall be a co-applicant with such owner or lessee.
14. A co-applicant with a public entity shall be eligible to receive benefits pursuant to
this section, provided that for such period as the property which is the subject of the
certificate of eligibility is exempt from real property taxation because it is owned or
controlled by a public entity no benefits shall be available to such recipient pursuant to
this section. Such recipient shall receive benefits pursuant to this section when such
property ceases to be eligible for exemption pursuant to other provisions of law, as
follows: the recipient shall, commencing with the date such tax exemption ceases, and
continuing until the expiration of the benefit period pursuant to this section, receive the
benefits to which such recipient is entitled in the corresponding tax year pursuant to this
section.
15. For the duration of the benefit period, the recipient shall file annually with the
department of housing preservation and development, on or before the. taxable status
date, a certificate of continuing use. Such certificate shall be on a form prescribed by the
department of housing preservation and development. The department of housing
preservation and development shall have the authority to require such information as it
deems necessary to determine whether the recipient has established continuing eligibility
for benefits. The department of housing preservation and development shall have the
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authority to terminate benefits pursuant to this section upon failure of the recipient to file
such certificate by the taxable status date. The burden of proof shall be on the recipient
to establish continuing eligibility for benefits and the department of housing preservation
and development may require that statements made in such certificate shall be made
under oath.
16. Any recipient whose property is the subject of a certificate of eligibility for benefits
pursuant to this section who converts aggregate floor area within such property from the
use authorized pursuant to this section where such conversion results in less that
seventy-five per centum of the aggregate floor area of such property being used or held
out for use for dwelling purposes, or where such conversion results in more than twentyfive per centum of such aggregate floor area being used or held out for use for
commercial, community facility or accessory use space, or where such conversion in a
building of one hundred thousand square feet or more of aggregate floor area that has a
certificate of eligibility for a partial exemption or partial abatement pursuant to
subdivision eight of this section results in less than fifty per centum of such aggregate
floor area being used or held out for use for dwelling purposes, shall cease to be eligible
for benefits as of the last date upon which the recipient met the requirements of this
section and proves by clear and convincing evidence that at least seventy-five per centum
of the aggregate floor area of the property was used or held out for use for dwelling
purposes, or twenty-five per centum or less of the aggregate floor area of such property
was used or held out for use for commercial, community facility or accessory use space,
or at least fifty per centum of the aggregate floor area of such property in a building of
one hundred thousand square feet or more which is receiving partial exemption or partial
abatement benefits was used or held out for use for dwelling purposes, respectively. Such
recipient shall pay, with interest, any taxes for which benefits were claimed after such
date, including the pro-rata share of tax for which any benefits were claimed during the
tax year in which the property was converted to a use not eligible for benefits under this
section.
17. All taxes plus interest required to be paid retroactively pursuant to this section shall
constitute a tax lien as of the date that it is determined that such taxes and interest are
owed. All interest shall be calculated from the date the taxes would have been due but for
the benefits claimed pursuant to this section at three per centum above the applicable
rate of interest imposed by such city generally for non-payment of real property tax with
respect to such property for the period in question.
(a) The department of housing preservation and development may deny, reduce,
suspend, terminate or revoke any exemption from or abatement of tax payments
pursuant to this section whenever: (i) a recipient fails to comply with the
requirements of this section or the rules promulgated hereunder; or (ii) an
application, certificate, report or other document submitted by an applicant or
recipient pursuant to this section or the rules promulgated hereunder contains a false
or misleading statement as to a material fact or omits to state any material fact
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necessary in order to make the statements therein not false or misleading. The
department of housing preservation and development may declare any applicant or
recipient referred to in subparagraph (i) or (ii) of this paragraph to be ineligible for
future benefits pursuant to this section for the same or other property.
(b) Notwithstanding any other law to the contrary, a recipient shall be personally
liable for any taxes owed pursuant to this section whenever such recipient fails to
comply with this section or the rules promulgated hereunder, or makes such false or
misleading statement or omission, and the department of housing preservation and
development determines that such act was due to the recipient's willful neglect, or
that under the circumstances such act constituted a fraud on the department of
housing preservation and development, or a buyer or prospective buyer of the
property. The remedy provided herein for an action in personam shall be in addition
to any other remedy or procedure for the enforcement of collection of delinquent
taxes provided by any general, special or local law. Any lease provision which
obligates a tenant to pay taxes which become due because of willful neglect or fraud
by the recipient, or otherwise relieves or indemnifies the recipient from any personal
liability arising hereunder, shall be void as against public policy except where the
imposition of such taxes or liability is occasioned by actions of the tenant in violation
of the lease.
(c) In order to carry out the purposes of this section the department of housing
preservation and development may administer oaths to and take the testimony of any
person, including but not limited to the owner of property which is the subject of an
application for a certificate of eligibility or a certificate of eligibility pursuant to this
section and issue subpoenas requiring the attendance of persons and the production
of such bills, books, papers or other documents as it shall deem necessary.
(d) If, during the benefit period, any real property tax or water or sewer charge due
and payable with respect to property receiving an exemption or abatement pursuant
to this section shall remain unpaid for at least one year following the date upon which
such tax or charge became due and payable, all exemptions and abatements granted
pursuant to this section with respect to such property shall be revoked, unless within
thirty days from the mailing of a notice of revocation by the department of finance
satisfactory proof is presented to the department of finance that any and all
delinquent taxes and charges owing with respect to such property as of the date of
such notice have been paid in full or are currently being paid in timely installments
pursuant to a written agreement with the department of finance or other appropriate
agency. Any revocation pursuant to this paragraph shall be effective with respect to
real property tax which became due and payable following the date of such
revocation.
History
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Add, L 1995, ch 4, ~ 14, eff Oct 29, 1995 (see 1995 note below); amd, L 1997, ch 629, 1,
eff Sept 17, 1997 (see 1997 note below),2, eff Sept 17, 1997 (see 1997 note below),3, eff
Sept 17, 1997 (see 1997 note below); L 2000, ch 261, 22, eff Aug 16, 2000; L 2005, ch 2,
1 (Part B), eff Aug 30, 2005.
P Annotations
__

Contenf Type: Statutes and Legislation

Terms: NY CLS Rptl 421-g
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Faculty Biographies
Joseph Burden is a founding Partner of Belkin Burden Wenig & Goldman, PC. Mr. Burden, as senior trial
counsel, has tried many cases in the Civil and Supreme Courts, including complicated non-primary
residence and owner occupancy proceedings and commercial holdover and non-payment proceedings.
Mr. Burden was successful in setting the initial precedent for an owner's right to pre-trial discovery in
non-primary residence holdover proceedings (NYU v. Farkas). He represents several non-profit
institutions, including New York University, Columbia University, Beth Israel Medical Center, St. Luke'sRoosevelt Hospital, the Jewish Theological Seminary and Lenox Hill Hospital. Mr. Burden also specializes
in loft litigation and administrative proceedings before the New York City Loft Board. He successfully
handled the first proceeding permitting an owner to recover possession of a loft for the owner's own
residential use. He also advises owners throughout the loft legalization process. In addition to litigation,
Mr. Burden has represented numerous clients in the negotiation and drafting of commercial leases. Mr.
Burden has lectured at the Practicing Law Institute and the City Bar Association on residential holdover
proceedings and commercial non-payment proceedings and at the Association of Housing Court Judges
on legislative changes. Mr. Burden is a member of the Board of Trustees of the Port Washington Public
Library and the Chair of the Housing Court Committee of the Association of the Bar of the City of New
York. He received a BA from Stony Brook University and a JD from University of Buffalo School of Law.
Nicholas Kamillatos joined Rosenberg & Estis in 1982, and became a member in June, 1989. For three
decades, he has represented property owners and lenders in numerous litigations and development
projects involving virtually every administrative and regulatory agency that has jurisdiction over real
estate in New York City. Those agencies include the New York State DHCR and Office of Attorney
General, the New York City HPD, ECB, and HDC, and federal matters at HUD. As a member of the firm's
Administrative Group, Nick Kamillatos has advised property owners on how to best deal with
overlapping regulations relating to the ownership, financing and redevelopment of residential
properties. He developed a due diligence system which allows buyers and lending institutions to confirm
the validity and enforceability of apartment building rent rolls using the State's rent registration
database. Mr. Kamillatos also assists MitchellLama property owners to establish the highest possible
rent levels after the properties leave the Mitchell-Lama system. He won a groundbreaking appeal to the
State's highest court establishing property owners' right to apply for substantial rent increases after
Mitchell-Lama regulation ends, KSLM-Columbus Apartment, Inc. v. DHCR, 2005. Additionally, Mr.
Kamillatos has represented high profile not-for-profit institutions in redeveloping their institutional real
estate for non-profit purposes, including the world renowned Carnegie Hall Corp. Mr. Kamillatos has
lectured as a recognized administrative law expert at the Real Estate Board of New York, the Community
Housing Improvement Program, Inc., and at bar association seminars convened by the Association of the
Bar of the City of New York and the New York County Lawyers' Association. He received a BA from Stony
Brook University and a JD from George Washington School of Law.
Frank E. Chaney joined Rosenberg & Estis, P.C. in 2014 as Of Counsel with the firms transactional
department. He is an expert in zoning, land use and environmental law, having advised and represented
clients on a wide range of land-use matters such as rezonings, special permits, variances, air rights
transfers, zoning lot mergers and development agreements. Prior to joining Rosenberg & Estis, Mr.
Chaney was with Bryan Cave LLP and Fried, Frank, Harris, Shriver & Jacobson LLP. Before that, Chaney
was a Zoning & Development Staff Consultant with Phillips Nizer LP. Earlier, Mr. Chaney served as
Assistant Commissioner with the NYC Department of Citywide Administrative Services, where he
planned for and managed the citys real estate portfolio. He was also Land Use Director for the Staten
Island Borough Presidents Office, where his responsibilities included designing, directing and
implementing the Staten Island Zoning Plan and the design, financing and planning for major waterfront
redevelopments. Mr. Chaney served with the NYC Department of City Planning as a City Planner and
then as Deputy Director, developing large scale plans and projects, and major rezonings in Manhattan
and Brooklyn. He also served as Senior Project Planner with the Mayors Office of Construction, where
his work included promoting technical innovation in public works design and construction, and
monitoring public works construction contracts. Prior to his work in the planning field, Mr. Chaney
worked as Assistant Project Superintendent for Grow Tunneling Corp. Mr. Chaney has overseen the
design, construction and implementation of large-scale projects throughout New York and the Outer
Boroughs. He received a bachelors degree in urban studies, economics and computer science, cum
laude, from New York University and his juris doctorate from New York Law School. He is a member of
the American Planning Association, the American Bar Association, the New York State Bar Association
and the New York City Bar Association, and is licensed to practice law in New York.

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N S T I T U T E

T AX B ENEFIT AND S UBSIDIZED

Program Co-sponsor: Community Housing Improvement Program (CHIP)

Nicholas Kamillatos, Rosenberg & Estis, PC

Index of CLE documents

Nicholas Kamillatos Member, Rosenberg & Estis, P.C.

The RPTL 421-g Tax Benefit Program:

Are apartments eligible for High Rent Deregulation;

The original 421-a incentive program and rent regulation requirements;

Private Housing Finance Law Article 2 Mitchell-Lama and Article 5

PHFL mandated Regulatory Agreements, content and significance;

Expiration of rent regulations and affordability requirements for PHFL

The status of Roberts as applied to properties receiving a 11-243 tax benefits;

Future trends in affordability.

f. As originally enacted, IH affordable units could not utilize government

In accordance with NYC Department of Housing Preservation

ii. Regulatory Agreement

Between owner/developer and HPD.

Recorded against the compensated development site and

iii. Permit Notice

Issued by HPD to DOB giving notice that building permits may

Issued upon execution of the Regulatory Agreement, and

iv. Completion Notice/IH Certificates

Issued by HPD to DOB giving notice that the affordable

Issued only upon issuance by DOB of a temporary or permanent

Required for issuance by DOB of C of O for any portion of the

Issued as IH Certificate of Eligibility for Zoning Bonus

IH Certificates may be re-transferred by transferee pursuant to a

B. MANDATORY INCLUSIONARY HOUSING (MIH) PROGRAM

Affordable housing will be required

Any site or area that is rezoned to facilitate the development of a substantial

MIH affordable housing must be provided by either new construction or conversion

Maximum FARs in MIH designated areas in:

Contextual zoning districts will be the same as in IH designated areas

Non-contextual zoning districts will be as currently allowed by height

Affordable Housing Fund - A fund administered by HPD, all contributions

Income Index - 200 percent of the Very Low-Income Limit established by

Income Band - a percentage of the income index that is the maximum

Qualifying Household - a low income, moderate income, or middle income

For developments, enlargements 2 or conversions in MIH designated areas

12,500 sq. ft. of residential floor area:

Option 1: 25% of the residential floor area for Qualifying

Option 2: 30% of the residential floor area for Qualifying

Option 3 (the Workforce Option): 30% of the residential floor

No direct subsidies may be used, and

Not available in Manhattan Community Districts 1-8 (below East

For developments, enlargements or conversions within MIH designated areas

The affordable housing requirement may be satisfied by making a

Special Permits. Where a development, enlargement or conversion:

Is not within a MIH designated area, but

Is subject to a special permit allowing a significant increase in

Modification of MIH Requirements by Board of Standards and Appeals

The Board of Standards and Appeals (BSA) may grant a special

Reduce the percentage of affordable floor area required by

Modify the income levels for Qualifying Households, or

Reduce the required payment to the Affordable Housing

To grant such permit, the BSA, must find:

The MIH Program requirements for affordable housing

There is no reasonable possibility that strict compliance

The unnecessary hardship was not self-created by the

The reduction or modification is the minimum necessary to

Copy of application to be simultaneously submitted to

HPD may make submission to or appear before the BSA,

Modification or reduction of MIH requirements to be