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Title 28: Housing Preservation and Development
Chapter 1: Rules and Regulations
Chapter 2: Rules and Regulations Pursuant to Article VIII-A of the Private Housing Finance Law of New York and Title I of the Housing and Community Development Act of 1974
Chapter 3: City-Aided Limited Profit Housing Companies
Chapter 4: Companies Formed Pursuant to the Redevelopment Companies Law of the State of New York [Repealed]
Chapter 5: J51 Tax Exemption and Tax Abatement
Chapter 6: Tax Exemption Pursuant to § 421-a(1) Through § 421-a(15) of the Real Property Tax Law and §§ 11-245, 11-245.1 and 11-245.1-b* of the Administrative Code of the City of New York
Chapter 7: Partial Tax Exemption for Private Dwellings Pursuant to § 421-b of the Real Property Tax Law
Chapter 8: Tax Lien Sales and In Rem Foreclosure Affecting Distressed Properties and Certain Other Properties
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Chapter 16: Access to Boiler Rooms in Multiple Dwellings
Chapter 17: Rules Pertaining to Objections to Charges Enforced as Tax Liens Pursuant to §§ 27-2144, 27-2153(q), 27-2091, 27-2115(f)(8), 27-2115(k), 28-215.1.1 and 28-216.11 of the Administrative Code
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Chapter 30: Neighborhood Redevelopment Program
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Chapter 49: Eligibility Requirements Pursuant to Real Property Tax Law Section 421-a(17)
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Chapter 51: Affordable New York Housing Program Rules and Eligibility Requirements Pursuant to Real Property Tax Law § 421-a(16)
Chapter 52: Speculation Watch List
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Chapter 52: Speculation Watch List
§ 52-01 Definitions.
As used in this chapter, the following terms shall have the following meanings. Capitalized terms not specifically defined in this chapter shall have the meanings set forth in the Act.
   421-a Construction Period Benefits. "421-a Construction Period Benefits" means exemption 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, pursuant to subdivisions 1 through 15 of section 421-a of the Real Property Tax Law.
   421-a Final Benefits. "421-a Final Benefits" means exemption from taxation for local purposes, other than assessments for local improvements, in tax years immediately following the taxable status date first occurring after the expiration of 421-a Construction Period Benefits, pursuant to subdivisions 1 through 15 of section 421-a of the Real Property Tax Law.
   421-a New Building Tax Lot. "421-a New Building Tax Lot" means a tax lot (i) for which DOF records indicate that 421-a Construction Period Benefits were received no earlier than eight fiscal years before the final day of the most recently concluded Fiscal Quarter, or (ii) for which DOF records indicate that 421-a Final Benefits were received no earlier than five fiscal years before the final day of the most recently concluded Fiscal Quarter, or (iii) that has received any real property tax exemption benefits, pursuant to subdivisions 1 through 15 of section 421-a of the Real Property Tax Law for a new multiple dwelling thereon that received its first temporary or permanent certificate of occupancy no earlier than five years before the final day of the most recently concluded Fiscal Quarter.
   Act. "Act" means Article 3 of Subchapter 4 of Chapter 2 of Title 27 of the Administrative Code of the City of New York, as may be amended.
   Affordable Housing. "Affordable Housing" means Dwelling Units for which occupancy or initial occupancy is required to be restricted based on the income of the occupant or prospective occupant thereof as a condition of (i) a loan, grant, tax exemption or conveyance of property from any state or local governmental agency or instrumentality pursuant to (A) the Private Housing Finance Law, other than Article 8-B of such law, or (B) the General Municipal Law, or (ii) a tax exemption pursuant to Section 420-c of the Real Property Tax Law. "Affordable Housing" shall not include Dwelling Units for which occupancy or initial occupancy is required to be restricted based on the income of the occupant or prospective occupant thereof as a condition of (i) a tax exemption pursuant to Section 421-a of the Real Property Tax Law, or (ii) generating a floor area bonus for the provision of affordable inclusionary housing or providing mandatory inclusionary housing pursuant to the Zoning Resolution.
   Borough Capitalization Rate. "Borough Capitalization Rate" means the median Capitalization Rate of all Qualified Transactions in a given borough during the four most recent Fiscal Quarters, as calculated by HPD, at the time each Speculation Watch List update is completed.
   DOF. "DOF" means the Department of Finance of the City of New York or any successor agency or department thereto.
   Dwelling Unit. "Dwelling Unit" means a dwelling unit as defined in § 27-2004 of the Housing Maintenance Code.
   Fiscal Quarter. "Fiscal Quarter" means any one of the following periods: (i) the period beginning on the first day of July and ending on the last day of September; or (ii) the period beginning on the first day of October and ending on the last day of December; or (iii) the period beginning on the first day of January and ending on the last day of March; or (iv) the period beginning on the first day of April and ending on the last day of June.
   Fiscal Year. "Fiscal Year" means the fiscal year of the City of New York, which commences July 1 and ends June 30.
   HDC. "HDC" means the New York City Housing Development Corporation.
   HDFC. "HDFC" means a housing development fund company organized pursuant to Article 11 of the Private Housing Finance Law.
   HPD. "HPD" means the Department of Housing Preservation and Development of the City of New York or any successor agency or department thereto.
   Internal Revenue Code. "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended.
   List. "List" means the speculation watch list that is published during each Fiscal Quarter and includes all Multiple Dwellings that (i) were the subject of Qualified Transactions and (ii) HPD has determined to be at risk of tenant harassment in accordance with the criteria established in 28 RCNY § 52-02.
   Listed Building. "Listed Building" means a Multiple Dwelling included on a List.
   Local Supervision. "Supervision" means monitoring of the performance and regulatory compliance of Affordable Housing by HPD's Division of Asset Management, HPD's Division of Housing Supervision, or HDC Asset Management, or their successors.
   Multiple Dwelling. "Multiple Dwelling" means a multiple dwelling, as defined in section 4 of the Multiple Dwelling Law:
      (i)   in which a majority of Dwelling Units are Rent Regulated;
      (ii)   that appears on the most recent DOF final assessment roll;
      (iii)   for which, during the Fiscal Year of the most recent DOF final assessment roll, DOF has recorded a notice of property value that lists numerical values greater than zero for both estimated gross income and estimated expenses;
      (iv)   for which the final assessment roll for the Fiscal Year immediately preceding the most recent notice of property value lists a tentative actual assessed value of greater than $40,000;
      (v)   that either (A) is exclusively residential with eleven or more Dwelling Units or (B) contains seven or more Dwelling Units and one or more commercial units;
      (vi)   that is not providing Affordable Housing subject to Local Supervision;
      (vii)   that is neither (A) fully exempt from real property taxation under any applicable law or (B) partially exempt from real property taxation pursuant to article 2, 4, 5, or 11 of the Private Housing Finance Law or Section 420-c of the Real Property Tax Law;
      (viii)   that is not receiving benefits pursuant to § 11-243 of the Administrative Code of the City of New York for any eligible work that was carried out with the substantial assistance of grants, loans or subsidies from any federal, state, or local governmental agency or instrumentality; and
      (ix)   that is not located on a 421-a New Building Tax Lot.
   Qualified Transaction. "Qualified Transaction" means the sale of a Multiple Dwelling that:
      (i)   occurred during the most recently concluded Fiscal Quarter;
      (ii)   has a sale price greater than $10,000;
      (iii)   is entirely contained within a single tax lot;
      (iv)   did not involve any federal, state, or local agency or instrumentality as either the purchaser or the seller; and
      (v)   did not involve an HDFC as the purchaser.
   Rent Regulated. "Rent Regulated" means subject to rent regulation under the Rent Stabilization Law of 1969, the Rent Stabilization Code, the Private Housing Finance Law, or the Emergency Tenant Protection Act of 1974, all as amended, together with any successor statutes or regulations addressing substantially the same subject matter.
   Zoning Resolution. "Zoning Resolution" means the Zoning Resolution of the City of New York, as amended.
(Added City Record 9/19/2018, eff. 10/19/2018; amended City Record 11/6/2019, eff. 12/6/2019)
§ 52-02 Criteria for Inclusion.
A Multiple Dwelling that is the subject of a Qualified Transaction and that has a Capitalization Rate less than the applicable Borough Capitalization Rate shall be added to the List. HPD will post a public e-mail address on its website through which HPD may be alerted as to any Multiple Dwelling that was either included on the List that allegedly did not meet the criteria for inclusion at the time of its inclusion or omitted from the List that allegedly did meet the criteria for inclusion.
(Added City Record 9/19/2018, eff. 10/19/2018)
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