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(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 28 RCNY § 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 least 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
(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 28 RCNY § 5-03(a)(2).
(8) Any conversion commenced on or after June 28, 1988 of any property classified under the Zoning Resolution as a non-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(f) 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 28 RCNY § 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.
(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.
(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 28 RCNY § 5-05(b) is in addition to the normal filing fees prescribed in 28 RCNY § 5-05(f). Notwithstanding the foregoing, an applicant who performs an abatement of lead-based 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 28 RCNY § 39-06(a), and all completed applications for final tax benefits must include the following documentation 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) a report by an independent certified public accountant on the cost of the Conversion, Alterations or Improvements, in a form prescribed by the Office and in accordance with standards approved by the Office and based upon the books and records of the owner provided that the original records are retained as set forth in 28 RCNY § 5-07(e)(3) and 28 RCNY § 39-06(a) and are available for audit purposes; 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 Conversion, Alterations or Improvements 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. § 1452b), 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 governmentally-supervised housing program; or
(iii) In the discretion of the Office, 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 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
(iv) In the case of applications for Buildings under 28 RCNY § 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; or
(ii) The Office shall require that the date of Commencement of Construction be confirmed by an affidavit of a registered architect or licensed professional engineer, 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 from the owner, 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 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 of Construction:
(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 professional 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) 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 Conversion, Alteration or Improvement; or
(iv) If none of the above are required by law, Completion of Construction must be confirmed by the submission of an affidavit of a registered architect or a licensed professional engineer, along with such other information as may be required by the Office, including, but not limited to, an affidavit from the owner, 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.
(6) Proof of Compliance with the Housing Maintenance Code. For applications 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 tenant-related 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 tenant-related 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 28 RCNY §§ 5-03(a)(2), (3) or (4) must provide proof of compliance with the relocation requirements of § 11-243(z) 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 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 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 legal 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 28 RCNY § 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 28 RCNY § 5-03(g).
(4) Provided, however, if benefits are being claimed under 28 RCNY § 5-03(g)(2)(iii) or (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 application 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 Information, Permits and Sign-offs" set forth in 28 RCNY § 5-09 contains a list of the documentation that the Office requires for specific alterations and improvements.
(f) Filing Fees.
(1) Applicants must submit a non-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 28 RCNY § 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 28 RCNY § 5-05(c)(6)(a), an additional non-refundable 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.
(f-1) BLDS Inspections. Except as otherwise provided in Section 489 of the Real Property Tax Law, § 11-243 of the Administrative Code or these Rules, the filing of an application for a Certificate of Eligibility and Reasonable Cost is deemed a representation by such applicant that, with respect to all items of work claimed in such application, there has been Completion of Construction. Unless the aggregate cost of the items of work claimed in such application is less than ten thousand dollars ($10,000) or a designated special application form has been submitted in accordance with subparagraph (iv) of paragraph two of subdivision (c) of this section, all such items of work are subject to a BLDS Inspection prior to HPD's issuance of a Certificate of Eligibility and Reasonable Cost. Any Certificate of Eligibility and Reasonable Cost issued with respect to such application shall not include items of work claimed therein where, as determined by such BLDS Inspection, there has not been Completion of Construction.
(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 applicant's responsibility to complete the application within twenty-four months of the initial filing date as provided in 28 RCNY § 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 applicant's 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 28 RCNY § 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 28 RCNY § 5-08.
(iv) For buildings subject to the dollar limit set forth in 28 RCNY § 5-06(d), the aggregate certified reasonable cost may not exceed the maximum eligible CRC set forth therein.
(v) [Repealed.]
(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 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 July 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.
(Amended City Record 10/24/2017, eff. 11/23/2017)
(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 28 RCNY § 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 July 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. § 1452b); 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 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 the HPD requiring operation of the property as housing for low and moderate income persons and families; or
(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 28 RCNY § 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 real property is occupied in part for residential purposes and in part for non-residential purposes, unless the non-residential portion is on a separately-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.
(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 least 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 re-rented 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 28 RCNY § 5-03(a)(6); and
(ii) Conversions of residential units covered by Article 7-C of the Multiple Dwelling Law under 28 RCNY § 5-03(a)(2); and
(iii) Alterations or improvements under paragraphs (5), (7) or (8) of 28 RCNY § 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 is providing housing affordable to persons of low or moderate income as defined in 28 RCNY § 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 28 RCNY § 5-10; or
(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(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 HUD (24 C.F.R. Part 881), or in one of the neighborhood preservation areas listed in 28 RCNY § 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 28 RCNY § 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 28 RCNY § 5-06(b)(6), or are located in a designated neighborhood preservation area, as listed in 28 RCNY § 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 28 RCNY § 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 28 RCNY § 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 C.F.R. 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 28 RCNY § 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.
Project | Maximum Annual Abatement | Maximum Total Abatement |
Project | Maximum Annual Abatement | Maximum Total Abatement | |
28 RCNY § 5-03(a)(1) | 8 1/3% of CRC | 90% of CRC | |
* | 28 RCNY § 5-03(a)(1) | 8 1/3% of CRC | 50% of CRC |
28 RCNY § 5-03(a)(2) | 8 1/3% of CRC | 90% of CRC | |
** | 28 RCNY § 5-03(a)(2) | 8 1/3% of CRC | 50% of CRC |
28 RCNY § 5-03(a)(3) | 8 1/3% of CRC | 50% of CRC | |
28 RCNY § 5-03(a)(4) | 8 1/3% of CRC | 90% of CRC | |
*** | 28 RCNY § 5-03(a)(5) | 8 1/3% of CRC | 90% of CRC |
**** | 28 RCNY § 5-03(a)(6) | 8 1/3% of CRC | 100% of CRC |
28 RCNY § 5-03(a)(7) | 8 1/3% of CRC | 90% of CRC | |
***** | 28 RCNY § 5-03(a)(8) | 8 1/3% of CRC | 90% of CRC* |
28 RCNY § 5-03(a)(10) | 8 1/3% of CRC | 90% of CRC | |
***** | 28 RCNY § 5-03(a)(11) | 8 1/3% of CRC | 90% of CRC |
****** | 28 RCNY § 5-03(a)(6) | 12 1/2% of CRC | 150% of CRC |
****** | 28 RCNY § 5-03(a)(9) | 12 1/2% of CRC | 150% of CRC |
* Conversions within the County of New York on any tax lot bordering on or south of 96th Street.
** Conversions within the County of New York.
*** 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 non-residential conversion located within the County of New York.
**** Non governmentally-assisted moderate rehabilitation.
***** Only eligible for 50% of CRC if done in connection with a non-residential conversion located within the County of New York.
****** Pursuant to 28 RCNY § 5-06(c)(1): governmentally-assisted moderate rehabilitation and substantial rehabilitation.
(ii) In cases qualifying for the enriched abatement described above in 28 RCNY § 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 28 RCNY § 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 1/2 | $12,600 |
3 1/2 | $15,000 |
4 1/2 | $17,400 |
5 1/2 | $19,800 |
(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 28 RCNY § 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 28 RCNY § 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 28 RCNY § 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 28 RCNY § 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 28 RCNY § 5-03(a)(6); and
(ii) conversions of residential units covered by Article 7-C of the Multiple Dwelling Law under 28 RCNY § 5-03(a)(2); and
(iii) alterations or improvements under paragraphs (5), (7) and (8) of 28 RCNY § 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 is providing housing affordable to persons of low or moderate income as defined in 28 RCNY § 5-06(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 28 RCNY § 5-10; or
(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(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 HUD (24 C.F.R. Part 881), or in one of the neighborhood preservation areas listed in 28 RCNY § 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
(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 a separately-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 28 RCNY § 5-03(a)(6); or
(D) conversions of residential units covered by Article 7-C of the Multiple Dwelling Law under 28 RCNY § 5-03(a)(2); or
(E) alterations or improvements under paragraphs (5), (7) and (8) of 28 RCNY § 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 is providing housing affordable to persons of low or moderate income as defined in 28 RCNY § 5-06(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 28 RCNY § 5-10; or
(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(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 HUD (24 C.F.R. Part 881), or in one of the neighborhood preservation areas listed in 28 RCNY § 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 28 RCNY § 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 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 1/3%) 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 28 RCNY § 5-03(a)(6) or
(b) to any conversion, alteration or improvement which is carried out with substantial governmental assistance.
(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 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 governmental assistance.
(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 north-westerly 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.
(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 six-year 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 applicant's 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 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 later 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.
(f) [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 a non-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.
(j) [Reserved.]
(k) As provided in 28 RCNY 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.
(a) Definitions. For purposes of this 28 RCNY § 5-07.1, the following terms shall have the following meanings:
Program for the Development of Affordable Housing. "Program for the Development of Affordable Housing" means housing that complies with the requirements of a grant, loan or subsidy from any federal, state or local agency or instrumentality and of the Act or these Rules to provide the requisite percentage of its units as units affordable to and available for occupancy by individuals whose incomes do not exceed a specified limit.
Exempt Cooperatives and Condominiums. "Exempt Cooperatives and Condominiums" means multiple dwellings, Buildings and structures (a) owned and operated by Mutual Companies, (b) owned and operated by Mutual Redevelopment Companies, (c) developed as a planned community and owned as two separate Condominiums containing a total of ten thousand or more dwelling units, or (d) Cooperatives or Condominiums that have an average assessed value of less than thirty thousand dollars ($30,000) per dwelling unit. Inspection Fee.
"Inspection Fee" means two times the actual cost of inspecting any Conversion, Alteration or Improvement claimed in an application for benefits pursuant to this chapter.
Substantial Governmental Assistance. "Substantial Governmental Assistance" means (a) 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 HPD, 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 (b) a written agreement between an HDFC and HPD limiting the income of persons entitled to purchase shares or rent housing accommodation therein.
(b) With respect to Conversions, Alterations or Improvements completed on or after December 31, 2011:
(1) any multiple dwelling, Building or structure that is owned as a Cooperative or Condominium other than Exempt Cooperatives and Condominiums shall only be eligible for benefits pursuant to these Rules if the Alterations or Improvements for which such multiple dwelling, Building or structure has applied for such benefits were carried out with Substantial Governmental Assistance;
(2) no benefits shall be granted for the Conversion of a non-residential Building or structure into a Class A Multiple Dwelling unless such Conversion was carried out with Substantial Governmental Assistance; and
(3) if such Conversions, Alterations or Improvements are not completed on the date upon which HPD inspects the items of work claimed in an application for benefits pursuant to these Rules, the applicant must pay the Inspection Fee for each additional inspection required to confirm that such Conversions, Alterations or Improvements have been completed.
(c) Except as otherwise provided in paragraph one of subdivision (b) of this 28 RCNY § 5-07.1, the provisions contained in subparagraphs (iv), (v) and (vi) of paragraph two of subdivision (g) of 28 RCNY § 5-03 shall apply to any multiple dwelling, Building or structure that is owned as a Cooperative or Condominium (other than Exempt Cooperatives and Condominiums) seeking benefits pursuant to the Act for Alterations or Improvements completed on or after December 31, 2011.
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