(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 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.
As used in this chapter, the following terms have the meanings indicated below.
Act. "Act" means § 11-243 of the Administrative Code as amended.
Actual Assessed Value. "Actual Assessed Value" means the value of a property for real property tax purposes as determined by assessors as defined in Real Property Tax Law § 102(1).
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 28 RCNY § 5-08.
Attorney General. "Attorney General" means the Attorney General of the State of New York.
BLDS. "BLDS" means HPD's Division of Building and Land Development Services or any successor unit.
BLDS Inspection. "BLDS Inspection" means an inspection by BLDS of the items of work that are claimed in an application submitted pursuant to 28 RCNY § 5-05.
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.
Building Permit. "Building Permit" means a permit that is issued by the Department of Buildings to authorize work on Conversions, Alterations or Improvements.
Certificate of Eligibility and Reasonable Cost. "Certificate of Eligibility and Reasonable Cost" means the certificate issued by the Office pursuant to 28 RCNY § 5-05(g)(3).
Certificate of Occupancy. "Certificate of Occupancy" means a Temporary Certificate of Occupancy or a Permanent Certificate of Occupancy.
Certified reasonable cost or CRC. "Certified reasonable cost" 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 a garden-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 Building Permit, or
(2) if physical alterations commenced prior to obtaining a required Building Permit, the actual start date, or
(3) for projects eligible pursuant to 28 RCNY § 5-03(a)(1), (3), (4), (9) or (10), the actual Commencement of Construction in good faith based on prior issuance of a Building Permit. Demolition work does not constitute "Commencement of Construction."
(b) If the issuance of a Building Permit 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 shall require that the Commencement of Construction date be confirmed by an affidavit of a registered architect or licensed professional engineer, along with 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 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.
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;
(ii) the date of issuance of a Temporary Certificate of Occupancy 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 Conversion, Alteration or Improvement; provided, however, that
(a) if none of the documents set forth above are required by law, "Completion of Construction" means that date on which physical operations to undertake Alterations or Improvements are concluded as confirmed by the submission of an affidavit of a registered architect or licensed professional engineer, along with 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 and a contractor's affidavit;
(b) if the applicant is a Limited Profit Housing Company which owns and operates a planned unit development consisting of at least fifteen thousand (15,000) dwelling units, "Completion of Construction" means that date on which physical operations to undertake Alterations or Improvements are concluded as confirmed by the submission of an affidavit of a registered architect or licensed professional engineer, along with 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 and a contractor's affidavit. 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 28 RCNY § 5-05(g)(3) 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 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 a Certificate of Occupancy.
Condominium. "Condominium" means any dwelling unit that is owned pursuant to the Condominium Act and is situated in a Class A Multiple Dwelling that either (a) has had an Offering Plan accepted for filing by the Attorney General, (b) has received a "no action" letter from the Attorney General, or (c) has demonstrated that it is not subject to the requirements of § 352(e) of the General Business Law.
Condominium Act. "Condominium Act" means Article IX-B of the Real Property Law.
Conversion. "Conversion" means only those items of work set forth in 28 RCNY § 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 exclusively for the benefit of persons or families who are entitled to occupancy in dwelling units by reason of ownership of stock, membership, or other evidence of ownership in the corporate owner of the Building, or for the benefit of such persons or families entitled to occupancy in dwelling units under applicable provisions of law without ownership of stock, membership, or other evidence of ownership in the corporate owner of the Building, where such Building either (a) has had an Offering Plan accepted for filing by the Attorney General, (b) has received a "no action" letter from the Attorney General or (c) 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. § 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 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.
Fannie Mae. "Fannie Mae" means the Federal National Mortgage Association.
Floor Area. "Floor Area" of a Building means the gross square footage of all of the floors and the accessory structures of the Building on the same lot, as measured from the exterior faces of exterior walls or from the center line of party walls. "Floor Area" of a dwelling unit in a Building means the gross square footage within the dwelling unit measured from the interior faces of the demising partitions or party 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.
HDFC. "HDFC" means a housing development fund company organized pursuant to Article XI of the Private Housing Finance Law.
Hotel. "Hotel" shall mean those buildings defined as Hotels by 28 RCNY § 5-03(f)(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.
Itemized Cost Breakdown Schedule. "Itemized Cost Breakdown Schedule" means the schedule set out in 28 RCNY § 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.
Limited Profit Housing Company. "Limited Profit Housing Company" means a limited profit housing company organized pursuant to Article II of the Private Housing Finance Law.
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 28 RCNY § 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 28 RCNY § 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 28 RCNY § 5-03(a)(6), and in which the certified reasonable cost, calculated as set forth in 28 RCNY § 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 28 RCNY § 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.
Mutual Redevelopment Company. "Mutual Redevelopment Company" means a Redevelopment Company that is a corporation operating 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.
Non-targeted Area. "Non-targeted Area" means a geographic area in the city of New York that is not located in a Targeted Area.
Offering Plan. "Offering Plan" means an offering statement or plan with respect to a Condominium or Cooperative as required by § 352-e of the General Business Law.
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 Certificate of Occupancy. "Permanent Certificate of Occupancy" means a permanent certificate of occupancy that is issued by the Department of Buildings with respect to a Class A Multiple Dwelling for all dwelling units contained therein.
Permanent residential use. "Permanent residential use" shall mean the lease of all residential units for residential purposes as set forth in 28 RCNY § 5-03(f)(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 or two-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.
Redevelopment Company. "Redevelopment Company" means a company organized pursuant to Article V of the Private Housing Finance Law.
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.
Substantial governmental assistance. "Substantial governmental assistance" shall mean a project carried out with grants, loans or subsidies from any federal, state or local 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 28 RCNY § 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 28 RCNY § 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 28 RCNY § 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 |
Borough | ZIP Code | Neighborhood Name |
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 28 RCNY § 5-06(e)(3).
Temporary Certificate of Occupancy. "Temporary Certificate of Occupancy" means a temporary certificate of occupancy that is issued by the Department of Buildings with respect to a Class A multiple dwelling for all dwelling units contained therein.
Zoning Resolution. "Zoning Resolution" means the Zoning Resolution of the City, as amended.
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