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(a) Effective Date of Abatement and Exemption. Tax benefits issued pursuant to the Act shall begin the July 1 following the issuance of a Certificate of Eligibility by the Department, provided that:
(1) an application for tax benefits must be received by the Department by the close of business on the March 31 following the first taxable status date following Completion of Conversion. An application for partial tax exemption and abatement benefits for Non-Residential Buildings of 100,000 square feet or more of Aggregate Floor Area must be received by the close of business on the March 31 following the first taxable status date following the partial Completion of Conversion, and
(2) a Temporary Certificate of Occupancy or Certificate of Occupancy is issued by the Department of Buildings by the prior taxable status date, and
(3) for applications received after March 31, 1997, the applicant has submitted evidence that the Department of Finance has approved the final tax lots for those tax lots subject to the benefits pursuant to the Act by the prior taxable status date, if lot apportionment is required.
(b) Duration and Extent of Benefits.
(1) Duration of Exemption.
(i) Eligible Multiple Dwellings not designated as a Landmark prior to Completion of Conversion: a tax lot containing an Eligible Multiple Dwelling that is the subject of a Certificate of Eligibility issued pursuant to the Act 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 cent (80%) of such amount; during the tenth year, the exemption shall equal sixty per cent (60%) of such amount; during the eleventh year, the exemption shall equal forty per cent (40%) of such amount; and during the twelfth year, the exemption shall equal twenty per cent (20%) of such amount.
(ii) Eligible Multiple Dwellings designated as a Landmark before Completion of Conversion: a tax lot containing an Eligible Multiple Dwelling that is the subject of a Certificate of Eligibility issued pursuant to the Act, 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 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 cent (80%) of such amount; during the eleventh year, the exemption shall equal sixty per cent (60%) of such amount; during the twelfth year, the exemption shall equal forty per cent (40%) of such amount; and during the thirteenth year, the exemption shall equal twenty per cent (20%) of such amount.
(2) Duration of Abatement.
(i) Eligible Multiple Dwellings not designated as a Landmark prior to Completion of Conversion: in addition to the benefits set forth in 28 RCNY § 32-04(b)(1)(i), a tax lot containing an Eligible Multiple Dwelling that is the subject of a Certificate of Eligibility issued pursuant to the Act 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 the Act, then the abatement shall equal the amount of 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 cent (100%) of such amount; during the eleventh year, the abatement shall equal eighty per cent (80%) of such amount; during the twelfth year, the abatement shall equal sixty per cent (60%) of such amount; during the thirteenth year, the abatement shall equal forty per cent (40%) of such amount, and during the fourteenth year, the abatement shall equal twenty per cent (20%) of such amount.
(ii) Eligible Multiple Dwellings designated a Landmark prior to Completion of Conversion: in addition to the benefits set forth in 28 RCNY § 32-04(b)(1)(ii), a tax lot containing an Eligible Multiple Dwelling that is the subject of a Certificate of Eligibility issued pursuant to the Act 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 the Act, 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 cent (100%) of such amount; during the twelfth year, the abatement shall equal eighty per cent (80%) of such amount; during the thirteenth year, the abatement shall equal sixty per cent (60%) of such amount; during the fourteenth year, the abatement shall equal forty per cent (40%) of such amount, and during the fifteenth year, the abatement shall equal twenty per cent (20%) of such amount. The following table shall illustrate the computation of the exemption and abatement pursuant to this subsection:
Tax Year Following Date of Issuance of Certificate of Eligibility | Landmarked Eligible Multiple Dwellings | Non-Landmarked Eligible Multiple Dwellings | ||
Exemption | Abatement | Exemption | Abatement | |
Tax Year Following Date of Issuance of Certificate of Eligibility | Landmarked Eligible Multiple Dwellings | Non-Landmarked Eligible Multiple Dwellings | ||
Exemption | Abatement | Exemption | Abatement | |
1 | 100% | 100% | 100% | 100% |
2 | 100% | 100% | 100% | 100% |
3 | 100% | 100% | 100% | 100% |
4 | 100% | 100% | 100% | 100% |
5 | 100% | 100% | 100% | 100% |
6 | 100% | 100% | 100% | 100% |
7 | 100% | 100% | 100% | 100% |
8 | 100% | 100% | 100% | 100% |
9 | 100% | 100% | 80% | 100% |
10 | 80% | 100% | 60% | 100% |
11 | 60% | 100% | 40% | 80% |
12 | 40% | 80% | 20% | 60% |
13 | 20% | 60% | 0% | 40% |
14 | 0% | 40% | 0% | 20% |
15 | 0% | 20% | 0% | 0% |
(3) Partial Benefits for Buildings of 100,000 square feet or more
(i) In a Non-Residential Building of 100,000 square feet or more of Aggregate Floor Area in which Completion of Conversion to an Eligible Multiple Dwelling of at least fifty per cent (50%) 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 the Act, partial exemption and partial abatement of real property taxes shall be available, as follows:
(A) 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 cent (50%) of the Aggregate Floor Area of the Non-Residential Building that has received a Temporary Certificate of Occupancy and
(B) 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 cent (50%) of the Aggregate Floor Area of the Non-Residential 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 the Act, 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 the Act, 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.
(ii) The Benefit Period of the exemption and abatement benefits defined in 28 RCNY § 32-04(b) shall begin upon receipt of any partial exemption from or partial abatement of real property taxes for a Non-Residential Building of 100,000 square feet or more of Aggregate Floor Area.
(4) Benefit Reduction for Non-Residential Space. If the Aggregate Floor Area of Commercial, Community Facility and Accessory Use Space exceeds twelve per cent (12%) of the Aggregate Floor Area of any building receiving benefits pursuant to the Act, the abatement and exemption benefit shall be reduced according to the procedure set forth in 28 RCNY § 32-03(d)(3).
(5) Benefits granted under the Act may not be combined with benefits under any other section of the Real Property Tax Law or any local law or any Rule promulgated thereunder for the same tax lot.
(c) Implementation of Benefit. Upon issuance of a 421-g Certificate of Eligibility, payment of outstanding fees, and verification that all charges owed to the City outstanding for more than one quarter have been paid, the Department will transmit the Certificate of Eligibility to the Department of Finance.
(a) Applicability of Rent Regulation: Notwithstanding the provisions of the City Rent and Rehabilitation Law (§§ 26-401 et seq. of the Administrative Code), as amended; or the Rent Stabilization Law of 1969 (§§ 26-501 et seq. of the Administrative Code), as amended; or the Emergency Tenant Protection Act of 1974, as amended, the rents of each dwelling unit in an Eligible Multiple Dwelling, except Exempt Dwelling Units, shall be fully subject to control under such local laws and act for the entire period for which the Eligible Multiple Dwelling is receiving benefits pursuant to the Act. An Eligible Multiple Dwelling receiving benefits pursuant to the Act whose benefits are suspended, terminated or revoked by the Department 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.
(b) Deregulation of Units: After the expiration of the Benefit Period, such rents shall continue to be subject to rent regulation, except that such rents that would not have been subject to such rent regulation but for this Section, 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 the Act.