Section 11-268
§ 11-268 Definitions. When used in this part:
a. "Commercial construction work" means the construction of a new
building or structure or the modernization, rehabilitation, expansion or
improvement of an existing building or structure for use as commercial
property.
b. "Commercial exclusion area" means an area as defined in subdivision
d of section 11-274 of this part.
c. "Commercial property" means nonresidential property on which will
exist after completion of commercial construction work a building or
structure, or portion thereof, used for the buying, selling or otherwise
providing of goods or services including hotel services, or for other
lawful business, commercial or manufacturing activities; provided that
property or portions of property dedicated to utility property shall not
be considered commercial property for purposes of this part.
d. "Commissioner" means the commissioner of finance of the city of New
York.
e. "Completion of construction," or "completion," when relating to new
construction, means the earlier of the date on which the department of
buildings issues a final certificate of occupancy, or when the
department has otherwise determined that construction is complete.
f. "Department" means the department of finance of the city of New
York.
g. "Industrial construction work" means the construction of a new
building or structure or the modernization, rehabilitation, expansion or
improvement of an existing building or structure for use as industrial
property.
h. "Industrial property" means nonresidential property on which will
exist after completion of industrial construction work a building or
structure, or portion thereof, with at least seventy-five percent of the
total net square footage of the property used or immediately available
and held out for manufacturing activities involving assembling goods or
the fabrication or processing of raw materials; provided that property
or portions of property dedicated to utility property shall not be
considered industrial property for purposes of this part.
i. "Manufacturing activity" means an activity involving the assembly
of goods or the fabrication or processing of raw materials, but shall
not include: (1) such activity when conducted for the purpose of retail
sale on the premises; or (2) utility services.
j. "Minimum required expenditure" means the amount that an applicant
must expend on construction work for a project in order to qualify for
benefits as provided in this part.
k. "Mixed-use property" means property on which exists, or will exist
upon completion of construction work, a building or structure used for
both residential and nonresidential purposes.
l. "Renovation construction work" means the modernization,
rehabilitation, expansion or improvement of an existing building or
structure where such modernization, rehabilitation, expansion or
improvement is physically and functionally integrated with the existing
building or structure, or portion thereof, does not increase the bulk of
the existing building or structure by more than thirty percent, and does
not increase the height of the existing building or structure by more
than thirty percent.
m. "Residential construction work" means any construction,
modernization, rehabilitation, expansion or improvement of dwelling
units other than dwelling units in a hotel.
n. "Restricted activity" means any entertainment activity that the
department has identified in rules promulgated by such department
pursuant to this part as an activity which, in the public interest,
should not be encouraged through the benefits of this part.
o. "Retail purposes" means any activity that consists predominately of
(1) the final sale of tangible personal property or services by a vendor
as defined in section eleven hundred one of the tax law, (2) the sale of
services that generally involve the physical, mental, and/or spiritual
care of individuals or the physical care of the personal property of
individuals, (3) retail banking services, or (4) the final sale of food
and/or beverage by a vendor as defined in section eleven hundred one of
the tax law, including the assembly, processing or packaging of goods,
provided that sales of such tangible personal property or services are
predominately to purchasers who personally visit the facilities at which
such sales are made or such property and services are provided. "Retail
purposes" shall not include hotel uses as described in subdivision d of
section 11-270 of this part.
p. "Temporary commercial incentive area boundary commission" means a
commission as defined in section 11-274 of this part.
q. "Utility property" means property and equipment as described in
paragraphs (c), (d), (e), (f) and (i) of subdivision twelve of section
one hundred two of the real property tax law that is used in the
ordinary course of business by its owner or any other entity or property
as described in paragraphs (a) and (b) of subdivision twelve of section
one hundred two of such law that is owned by any entity that uses in the
ordinary course of business property and equipment as described in
paragraphs (c), (d), (e), (f) and (i) of subdivision twelve of section
one hundred two of such law, without regard to the classification of
such property and equipment for real property tax purposes pursuant to
section eighteen hundred two of such law, except that any such property
and equipment used solely to serve the building to which they are
attached shall not be deemed utility property. Notwithstanding any
provision of this part to the contrary, peaking units shall not be
considered utility property. For purposes of this part, "peaking unit"
shall mean a generating unit that: (a) is determined by the New York
independent system operator or a federal or New York state energy
regulatory commission to constitute a peaking unit as set forth in
section 5.14.1.2 of the New York independent system operator's market
administration and control area services tariff, as such term existed as
of April first, two thousand eleven; or (b) has an annual average
operation, during the calendar year preceding the taxable status date,
of less than eighteen hours following each start of the unit; for
purposes of calculating the annual average, operations during any period
covered by any major emergency declaration issued by the New York
independent system operator, northeast power coordinating council, or
other similar entity shall be excluded. A "peaking unit" under this part
shall include all real property used in connection with the generation
of electricity, and any facilities used to interconnect the peaking unit
with the electric transmission or distribution system, but shall not
include any facilities that are part of the electric transmission or
distribution system; it may be comprised of a single turbine and
generator or multiple turbines and generators located at the same site.
Notwithstanding any provision of this part to the contrary, a peaking
unit shall be considered industrial property, provided however that the
benefit period for a peaking unit shall be as set forth in paragraph
two-a of subdivision c of section 11-269 of this part.
Section 11-269
§ 11-269 Industrial and commercial real property tax abatement. a.
Subject to the provisions of this part, tax abatement benefits shall be
available to eligible recipients in accordance with the provisions of
this section.
b. Amount of abatement base. (1) Calculation of abatement base. Except
as provided in paragraph (5) of subdivision c of this section, the
abatement base used to determine the amount of the abatement provided
under this part shall be the amount by which the post-completion tax on
a building or structure exceeds one hundred fifteen percent of the
initial tax levied on a building or structure.
(2) Initial tax on building or structure. (a) Determination of initial
tax. The initial tax shall be determined by multiplying the final
taxable assessed value, without regard to any exemptions, shown on the
assessment roll with a taxable status date immediately preceding the
issuance of the first building permit by the initial tax rate. For
purposes of this subdivision, the initial tax rate shall be the final
tax rate applicable to the assessment roll with a taxable status date
immediately preceding the issuance of the first building permit. If no
permit was required, the initial tax and the initial tax rate shall be
determined based on the assessment roll with a taxable status date
immediately preceding the commencement of construction.
(b) Effect of tax lot apportionment or merger. For a property as to
which an applicant has applied for benefits pursuant to this part, if
such property is apportioned or merged and such apportionment or merger
is not reflected in the assessment roll described in subparagraph (a) of
this paragraph, the initial tax for the newly created tax lot or lots
shall be based on the initial tax of the lot or lots from which they
have been created, which shall be apportioned among the newly created
tax lot or lots in the manner established by the department for purposes
of assessed valuation of real property.
(3) Post-completion tax on building or structure. For purposes of
calculating the abatement base only, the post-completion tax is
determined by multiplying the initial tax rate by the final taxable
assessed value, without regard to any exemptions, that would be shown on
the assessment roll but for the abatement, on the assessment roll with a
taxable status date immediately following the earlier of:
(a) completion of construction; or
(b) four years from the date of issuance of the first building permit,
or if no permit was required, the commencement of construction.
(4) (a) If the taxable assessed value is later reduced by a court
order or application to the tax commission, then the initial tax or the
post-completion tax shall be the tax as reduced.
(b) The taxable assessed value used for the calculations in this
subdivision shall be the lower of the actual and transitional value as
provided in subdivision three of section eighteen hundred five of this
chapter.
(5) Mixed-use property. For a mixed-use property, the initial tax and
post-completion tax shall be apportioned between the residential and
nonresidential portions. The department may promulgate rules to
determine the method of apportionment.
(6) Initial taxes not to be reduced by abatement. Except as provided
in paragraph (5) of subdivision c of this section, the abatement
provided under this part shall not be applicable in any year of the
benefit period to the initial tax or to the tax on the portion of the
assessment attributable to land. Additionally, the abatement shall not
result in any credit or refund of real property taxes.
c. Industrial and commercial abatements. (1) Abatement for commercial
construction work. Upon approval by the department of a final
application for benefits, an applicant who has performed commercial
construction work outside of a special commercial abatement area, as
designated pursuant to subdivision b of section 11-274 of this part, or
a renovation area, as defined by subdivision c of section 11-274 of this
part, shall be eligible for an abatement of real property taxes, as
follows:
(a) Amount of abatement. The first year of the abatement shall be the
tax year with the first taxable status date that follows the sooner of
(i) completion of construction; or (ii) four years from the date the
first building permit was issued, or if no permit was required, the
commencement of construction. For years one through eleven, the
abatement shall be the amount of the abatement base. For years twelve
through fifteen, the abatement shall decrease by twenty percent each
year. The following table illustrates the abatement computation:
Tax year during benefit period: Amount of abatement:
Years 1 through 11 100% of abatement base
12 80% of abatement base
13 60% of abatement base
14 40% of abatement base
15 20% of abatement base
(b) Minimum required expenditure. For commercial construction work,
the minimum required expenditure is thirty percent of the property's
taxable assessed value in the tax year with a taxable status date
immediately preceding the issuance of the first building permit, or if
no permit was required, the commencement of construction. Expenditures
for residential construction work or construction work on portions of
property to be used for restricted activities shall not be included in
the minimum required expenditure.
(2) Abatement for industrial construction work or commercial
construction work in special commercial abatement areas on buildings
where not more than ten percent of the building or structure is used for
retail purposes. Upon approval by the department of a final application
for benefits, an applicant who has performed industrial construction
work in any area, where not more than ten percent of the building or
structure on which such work has been performed is used for retail
purposes, or commercial construction work in a special commercial
abatement area, as designated pursuant to subdivision b of section
11-274 of this part, where not more than ten percent of the building or
structure on which such work has been performed is used for retail
purposes, shall be eligible for an abatement of real property taxes, as
follows:
(a) Amount of abatement. The first year of the abatement shall be the
tax year with the first taxable status date that follows the sooner of
(i) completion of construction; or (ii) four years from the date the
first building permit was issued, or if no permit was required, the
commencement of construction. For years one through sixteen, the
abatement shall be the amount of the abatement base. The abatement shall
be adjusted for inflation protection as provided in subparagraph (b) of
this paragraph. For years seventeen through twenty-five, the abatement
shall decrease by ten percent each year. The following table illustrates
the abatement computation:
Tax year during benefit period: Amount of abatement:
Years 1 through 16 100% of abatement base
17 90% of abatement base
18 80% of abatement base
19 70% of abatement base
20 60% of abatement base
21 50% of abatement base
22 40% of abatement base
23 30% of abatement base
24 20% of abatement base
25 10% of abatement base
(b) Inflation protection. (i) Industrial construction work. (A) Effect
of assessed valuation increases. For years two through thirteen of the
benefit period, except as provided in item (B) of this clause, if there
is any increase in tax in that year that is based on an increase of
taxable assessed valuation since the immediately prior tax year, such
excess tax liability shall be added to the amount of the abatement base.
Such addition to the amount of the abatement base shall be determined
using the initial tax rate.
(B) Physical increases. Notwithstanding the provisions of item (A) of
this clause, if in any of years two through thirteen of the benefit
period, a physical change to the property results in an increase in the
taxable assessed value of the property of more than five percent for
that year, then any increase in taxes for that year shall not be added
to the amount of the abatement base in any year.
(C) If the taxable assessed value upon which an adjustment to the
abatement under this paragraph is based is later reduced by a court
order or application to the tax commission, then the appropriate
adjustment to the abatement base shall be made in accordance with the
reduced taxable assessed value.
(i) Commercial construction work in special commercial abatement areas
on buildings where not more than ten percent of the building or
structure is used for retail purposes. (A) Effect of assessed valuation
increases. For years two through thirteen of the benefit period, except
as provided in item (B) of this clause, if there is any increase in tax
in that year that is based on an increase of taxable assessed valuation
since the immediately prior tax year that exceeds five percent, such
excess tax liability shall be added to the amount of the abatement base.
Such addition to the amount of the abatement base shall be determined
using the initial tax rate.
(B) Physical increases. Notwithstanding the provisions of item (A) of
this clause, if in any of years two through thirteen of the benefit
period, a physical change to the property results in an increase in the
taxable assessed value of the property of more than five percent for
that year, then any increase in taxes for that year shall not be added
to the amount of the abatement base in any year.
(C) If the taxable assessed value upon which an adjustment to the
abatement under this paragraph is based is later reduced by a court
order or application to the tax commission, then the appropriate
adjustment to the abatement base shall be made in accordance with the
reduced taxable assessed value.
(ii) Mixed-use property. For a property as to which benefits are given
for both industrial and commercial construction, the inflation
protection provided under this subparagraph shall be based on the
predominant use of the property as determined by the department.
(c) Minimum required expenditure. For industrial construction work or
commercial construction work in a special commercial abatement area, the
minimum required expenditure is thirty percent of the property's taxable
assessed value in the tax year with a taxable status date immediately
preceding the issuance of the first building permit, or if no permit was
required, the commencement of construction. Expenditures for residential
construction work or construction work on portions of property to be
used for restricted activities shall not be included in the minimum
required expenditure.
(2-a) Abatement for industrial construction work on a peaking unit.
Upon approval by the department of a final application for benefits, an
applicant who has performed industrial construction work in any area on
a peaking unit, shall be eligible for an abatement of real property
taxes, as follows:
(a) Amount of abatement. The first year of the abatement shall be the
tax year with the first taxable status date that follows the sooner of
(i) completion of construction; or (ii) four years from the date the
first building permit was issued, or if no permit was required, the
commencement of construction. For years one through fifteen, the
abatement shall be the amount of the abatement base. The abatement shall
be adjusted for inflation protection as provided in subparagraph (b) of
this paragraph. The following table illustrates the abatement
computation:
Tax year during benefit period: Amount of abatement:
Years 1 through 15 100% of abatement base
(b) Inflation protection. (i) Industrial construction work, effect of
assessed valuation increases. For years two through thirteen of the
benefit period, except as provided in clause (ii) of this subparagraph,
if there is any increase in tax in that year that is based on an
increase of taxable assessed valuation since the immediately prior tax
year, such excess tax liability shall be added to the amount of the
abatement base. Such addition to the amount of the abatement base shall
be determined using the initial tax rate.
(ii) Physical increases. Notwithstanding the provisions of clause (i)
of this subparagraph, if in any of years two through thirteen of the
benefit period, a physical change to the property results in an increase
in the taxable assessed value of the property of more than five percent
for that year, then any increase in taxes for that year shall not be
added to the amount of the abatement base in any year.
(iii) If the taxable assessed value upon which an adjustment to the
abatement under this paragraph is based is later reduced by a court
order or application to the tax commission, then the appropriate
adjustment to the abatement base shall be made in accordance with the
reduced taxable assessed value.
(c) Minimum required expenditure. For industrial construction work on
a peaking unit, the minimum required expenditure is thirty percent of
the property's taxable assessed value in the tax year with a taxable
status date immediately preceding the issuance of the first building
permit, or if no permit was required, the commencement of construction.
Expenditures for residential construction work or construction work on
portions of property to be used for restricted activities shall not be
included in the minimum required expenditure.
(3) Abatement for industrial construction work or commercial
construction work in special commercial abatement areas on buildings
where more than ten percent of the building or structure is used for
retail purposes. Upon approval by the department of a final application
for benefits, an applicant who has performed industrial construction
work in any area, where more than ten percent of the building or
structure on which such work has been performed is used for retail
purposes, or commercial construction work in a special commercial
abatement area, as designated pursuant to subdivision b of section
11-274 of this part, where more than ten percent of the building or
structure on which such work has been performed is used for retail
purposes, shall be eligible for an abatement of real property taxes on
the non-retail portion of such building or structure and up to ten
percent of such building or structure used for retail purposes, in
accordance with paragraph (2) of this subdivision, and shall be eligible
for an abatement of real property taxes on the remaining retail portion
of such building or structure, as follows:
(a) Amount of abatement. The first year of the abatement shall be the
tax year with the first taxable status date that follows the sooner of
(i) completion of construction; or (ii) four years from the date the
first building permit was issued, or if no permit was required, the
commencement of construction. For years one through eleven, the
abatement shall be the amount of the abatement base. For years twelve
through fifteen, the abatement shall decrease by twenty percent each
year. The abatement shall be adjusted for inflation protection as
provided in subparagraph (b) of this paragraph. The following table
illustrates the abatement computation:
Tax year during benefit period: Amount of abatement:
Years 1 through 11 100% of abatement base
12 80% of abatement base
13 60% of abatement base
14 40% of abatement base
15 20% of abatement base
(b) Inflation protection. (i) Industrial construction work. (A) Effect
of assessed valuation increases. For years two through thirteen of the
benefit period, except as provided in item (B) of this clause, if there
is any increase in tax in that year that is based on an increase of
taxable assessed valuation since the immediately prior tax year, such
excess tax liability shall be added to the amount of the abatement base.
Such addition to the amount of the abatement shall be determined using
the initial tax rate.
(B) Physical increases. Notwithstanding the provisions of item (A) of
this clause, if in any of years two through thirteen of the benefit
period, a physical change to the property results in an increase in the
taxable assessed value of the property of more than five percent for
that year, then any increase in taxes for that year shall not be added
to the amount of the abatement base in any year.
(C) If the taxable assessed value upon which an adjustment to the
abatement under this paragraph is based is later reduced by a court
order or application to the tax commission, then the appropriate
adjustment to the abatement base shall be made in accordance with the
reduced taxable assessed value.
(i) Commercial construction work in special commercial abatement areas
on buildings where more than ten percent of the building or structure is
used for retail purposes. (A) Effect of assessed valuation increases.
For years two through thirteen of the benefit period, except as provided
in item (B) of this clause, if there is any increase in tax in that year
that is based on an increase of taxable assessed valuation since the
immediately prior tax year that exceeds five percent, such excess tax
liability shall be added to the amount of the abatement base. Such
addition to the amount of the abatement base shall be determined using
the initial tax rate.
(B) Physical increases. Notwithstanding the provisions of item (A) of
this clause, if in any of years two through thirteen of the benefit
period, a physical change to the property results in an increase in the
taxable assessed value of the property of more than five percent for
that year, then any increase in taxes for that year shall not be added
to the amount of the abatement base in any year.
(C) If the taxable assessed value upon which an adjustment to the
abatement under this paragraph is based is later reduced by a court
order or application to the tax commission, then the appropriate
adjustment to the abatement base shall be made in accordance with the
reduced taxable assessed value.
(ii) Mixed-use property. For a property as to which benefits are given
for both industrial and commercial construction, the inflation
protection provided under this subparagraph shall be based on the
predominant use of the property as determined by the department.
(c) Minimum required expenditure. For industrial construction work or
commercial construction work in a special commercial abatement area, the
minimum required expenditure is thirty percent of the property's taxable
assessed value in the tax year with a taxable status date immediately
preceding the issuance of the first building permit, or if no permit was
required, the commencement of construction. Expenditures for residential
construction work or construction work on portions of property to be
used for restricted activities shall not be included in the minimum
required expenditure.
(4) Abatement for renovation construction work in renovation areas.
Subject to the provisions of subparagraph (c) of this paragraph, upon
approval by the department of a final application for benefits, an
applicant who has performed renovation construction work in a renovation
area, as defined by subdivision c of section 11-274 of this part, shall
be eligible for an abatement of real property taxes, as follows:
(a) Amount of abatement. For the renovation areas defined in
paragraphs (1) and (2) of subdivision c of section 11-274 of this part,
the first year of the abatement shall be the tax year with the first
taxable status date that follows the sooner of (i) completion of
construction; or (ii) four years from the date the first building permit
was issued, or if no permit was required, the commencement of
construction. For years one through eight, the abatement shall be the
amount of the abatement base. For years nine through twelve, the
abatement shall decrease by twenty percent each year. The following
table illustrates the abatement computation:
Tax year during benefit period: Amount of abatement:
Years 1 through 8 100% of abatement base
9 80% of abatement base
10 60% of abatement base
11 40% of abatement base
12 20% of abatement base
(b) Amount of abatement. For the renovation area defined in paragraph
(3) of subdivision c of section 11-274 of this part, the first year of
the abatement shall be the tax year with the first taxable status date
that follows the sooner of (i) completion of construction; or (ii) four
years from the date the first building permit was issued, or if no
permit was required, the commencement of construction. For years one
through five, the abatement shall be the amount of the abatement base.
For years six through nine, the abatement shall decrease by twenty
percent each year. In year ten, the abatement shall be twenty percent of
the abatement base. The following table illustrates the abatement
computation:
Tax year during benefit period: Amount of abatement:
Years 1 through 5 100% of abatement base
6 80% of abatement base
7 60% of abatement base
8 40% of abatement base
9 20% of abatement base
10 20% of abatement base
(c) If more than five percent of any building or structure upon which
renovation construction work is performed is used for retail purposes,
no abatement shall be granted for the retail portions of such building
or structure in excess of five percent, but five percent of such
building or structure used for retail purposes shall be eligible for an
abatement of real property taxes in accordance with subparagraph (a) or
subparagraph (b) of this paragraph, as applicable; provided, however,
that notwithstanding any other provision of this part, any building or
structure located in the renovation area defined in paragraph (1) of
subdivision c of section 11-274 of this part shall be eligible for an
abatement in accordance with subparagraph (a) of this paragraph
regardless of the amount of the building or structure used for retail
purposes.
(d) Minimum required expenditure. For renovation construction work in
renovation areas, the minimum required expenditure is thirty percent of
the property's taxable assessed value in the tax year with a taxable
status date immediately preceding the issuance of the first building
permit, or if no permit was required, the commencement of construction.
Expenditures for construction work on portions of the property to be
used for retail purposes that exceed five percent of the building or
structure in renovation areas defined in paragraphs (2) and (3) of
subdivision c of section 11-274 of this part, for residential
construction work, or for construction work on portions of the property
to be used for restricted activities, shall not be included in the
minimum required expenditure.
(5) Additional industrial abatement. In addition to the abatement for
industrial construction work provided in paragraph (2) of this
subdivision, an applicant who performs industrial construction work that
meets the eligibility requirements set forth in this part shall be
eligible for an additional abatement, calculated as a percentage of the
initial tax, as follows:
(a) Amount of abatement. The first year of the abatement shall be the
tax year with the first taxable status date that follows the sooner of
(i) completion of construction; or (ii) four years from the date the
first building permit was issued, or if no permit was required, the
commencement of construction. The amount of the additional industrial
abatement shall be as follows:
Tax year during benefit period: Amount of additional abatement:
1 through 4 50% of the initial tax amount
5 40% of the initial tax amount
6 40% of the initial tax amount
7 30% of the initial tax amount
8 30% of the initial tax amount
9 20% of the initial tax amount
10 20% of the initial tax amount
11 10% of the initial tax amount
12 10% of the initial tax amount
(b) Minimum required expenditure. For the additional industrial
abatement, the minimum required expenditure is forty percent of the
property's taxable assessed value in the tax year with a taxable status
date immediately preceding the issuance of the first building permit, or
if no permit was required, the commencement of construction.
Expenditures for residential construction work or construction work on
portions of property to be used for restricted activities shall not be
included in the minimum required expenditure.
(6) Abatement for commercial construction work on new construction in
certain areas of the borough of Manhattan. Notwithstanding any other
provision of law, upon approval by the department of a final application
for benefits, an applicant who has performed commercial construction
work on a new building or structure, in the geographical area as
specified in subparagraph (d) of this paragraph, shall be eligible for
an abatement of real property taxes, as follows:
(a) Amount of abatement. The first year of the abatement shall be the
tax year with the first taxable status date that follows the sooner of
(i) completion of construction; or (ii) four years from the date the
first building permit was issued, or if no permit was required, the
commencement of construction. For years one through four, the abatement
shall be the amount of the abatement base. For years five through eight,
the abatement shall decrease by twenty percent each year. The following
table illustrates the abatement computation:
Tax year during benefit period: Amount of abatement:
Years 1 through 4 100% of abatement base
5 80% of abatement base
6 60% of abatement base
7 40% of abatement base
8 20% of abatement base
(b) Minimum required expenditure. The minimum required expenditure is
thirty percent of the property's taxable assessed value in the tax year
with a taxable status date immediately preceding the issuance of the
first building permit, or if no permit was required, the commencement of
construction. Expenditures for residential construction work or
construction work on portions of property to be used for restricted
activities shall not be included in the minimum required expenditure.
(c) Special eligibility requirements. Notwithstanding any other
provision of this part, no benefits shall be granted pursuant to this
paragraph unless the building or structure meets the requirements of
clauses (i) and (ii) of this subparagraph, and further meets at least
two of the requirements set forth in clauses (iii) through (vii) of this
subparagraph:
(i) The height of at least forty percent of the floors in such
building or structure shall be not less than twelve feet, nine inches
measured from the top of the slab comprising the floor to the bottom of
the slab comprising the ceiling;
(ii) Such building or structure shall be served by fiber-optic
telecommunications wiring and shall contain vertical penetrations for
the distribution of fiber optic cabling to individual tenants on each
floor;
(iii) The total square footage of such building or structure is not
less than five hundred thousand gross square feet;
(iv) A minimum of two hundred thousand gross square feet or
twenty-five per centum of such building or structure is comprised of
floors of not less than forty thousand gross square feet;
(v) At least ten per centum of the gross square footage of such
building or structure is comprised of floors that contain no more than
eight structural columns, excluding any columns within the core or on
the periphery of such building or structure;
(vi) The electrical capacity of such building or structure is not less
than six watts per net square foot;
(vii) Emergency backup power sufficient to accommodate a need of six
watts per net square foot is available in at least two hundred thousand
gross square feet or twenty-five per centum of such building or
structure.
(d) Geographical area. Abatements will only be granted for new
construction work pursuant to this paragraph in the following
geographical area: the area in the borough of Manhattan bounded by
Murray Street on the north starting at the intersection of West Street
and Murray Street; running easterly along the center line of Murray
Street; connecting through City Hall Park with the center line of
Frankfort Street and running easterly along the center line of Frankfort
and Dover Streets to the intersection of Dover Street and South Street;
running southerly along the center line of South Street to Peter Minuit
Plaza; connecting through Peter Minuit Plaza to the center line of State
Street and running northwesterly along the center line of State Street
to the intersection of State Street and Battery Place; running westerly
along the center line of Battery Place to the intersection of Battery
Place and West Street; and running northerly along the center line of
West Street to the intersection of West Street and Murray Street, except
the area in the borough of Manhattan bounded by Church Street on the
east starting at the intersection of Liberty Street and Church Street;
running northerly along the center line of Church Street to the
intersection of Church Street and Vesey Street; running westerly along
the center line of Vesey Street to the intersection of Vesey Street and
West Broadway; running northerly along the center line of West Broadway
to the intersection of West Broadway and Barclay Street; running
westerly along the center line of Barclay Street to the intersection of
Barclay Street and Washington Street; running southerly along the center
line of Washington Street to the intersection of Washington Street and
Vesey Street; running westerly along the center line of Vesey Street to
the intersection of Vesey Street and West Street; running southerly
along the center line of West Street to the intersection of West Street
and Liberty Street; and running easterly along the center line of
Liberty Street to the intersection of Liberty Street and Church Street.
d. Limitations on abatement. (1) Subsequent abatement. With respect to
any property that has received or is receiving abatement benefits under
this part, an applicant shall not file a preliminary application for new
abatement benefits under this part for an additional construction
project on the same portion of the property for which construction work
is the subject of abatement benefits under this part until at least four
years have elapsed since the first day of the first tax year of such
abatement benefits under the prior abatement, and, in the event that
such new benefits are granted, then notwithstanding any other provision
of this part or any other law, the initial tax for any such new
abatement will be determined without regard to the prior abatement and
any other abatement or exemption granted to the property.
(2) Abatement benefits granted under this part shall not in any year
exceed the real property taxes imposed on such property.
(3) Once an abatement is granted, no additional benefits pursuant to
this part shall be granted for construction work that is substantively a
part of eligible construction work for which benefits have been approved
or granted.
(4) No benefits shall be granted for residential construction work.
(5) Any parcel partly located in an excluded area shall be deemed to
be entirely located in such area.
(6) Where a tax lot contains multiple structures or buildings with
eligible and non-eligible uses, the initial tax shall be apportioned
under rules promulgated by the commissioner and only the tax
attributable to the eligible portion of the property shall be abated.
(7)(a) No benefits under this part may be received by a property that
is concurrently receiving exemption or abatement of real property taxes
under any other law, except for an exemption under (i) section four
hundred twenty-a, four hundred twenty-b or four hundred fifty-nine-b of
the real property tax law; or (ii) any section of the real property tax
law as to which the city has enacted a local law to implement such
exemption and as to which exemption is granted only if the property is
the primary or legal residence of one or more of the owners of the
property, including such sections in which exemption may be granted if
an owner is absent from the residence while receiving medical benefits;
or (iii) title two-D of article four of the real property tax law for a
separate project involving separate parts of the building or structure
that was completed prior to the application for benefits.
(b) For purposes of this paragraph, "property" means the real property
contained by an individual tax lot.
(c) Notwithstanding subparagraph (b) of this paragraph, where a
property is owned in condominium form, and an application for benefits
under this part includes more than one tax lot in the same condominium,
then for purposes of this paragraph, "property" shall include any or all
such tax lots that are included in the application.
Section 11-270
§ 11-270 Eligibility for benefits. a. Time limit for meeting minimum
required expenditure. Applicants must meet the appropriate minimum
required expenditure as provided in subdivision c of section 11-269 of
this part relating to the abatement for which such project qualifies as
follows:
(1) No later than four years from the date of issuance of the first
building permit, or if no permit was required, the commencement of
construction.
(2) Mixed use properties. Expenditures for construction work related
to the common areas and systems of such property shall be allocated
under rules promulgated by the department between the residential,
nonresidential and retail, if any, portions of the property.
b. Time limit for completion of construction. Construction of
buildings or structures for which benefits have been approved shall be
completed no later than five years from the date of issuance of the
first building permit, or if no permit was required, the commencement of
construction. Failure to meet this requirement shall result in
termination of any inflation protection provided under subdivision c of
section 11-269 of this part for any tax year that begins following the
date by which completion of construction is required under this
paragraph.
c. Non-permissible uses. To be eligible for benefits, the property may
not be used for a non-permissible purpose. Accordingly, no abatement
benefits under this part shall be granted for work to be performed on
property to be used for the following purposes:
(1) Residential. No abatement benefits under this part shall be
granted for construction work for residential purposes, or for work on a
structure or building where twenty percent or more of the total rentable
square footage of such property is or will be dedicated to residential
purposes, provided however that where less than five percent of a
property's rentable square footage is or will be dedicated to
residential purposes, that use shall be considered de minimus and shall
not be considered in determining benefits under this part.
(a) For purposes of this paragraph, "property" means the real property
contained by an individual tax lot.
(b) Notwithstanding subparagraph (a) of this paragraph, where a
building or structure is owned in condominium form, and an application
for benefits under this part includes more than one property in the same
condominium, then for purposes of this paragraph, the five percent and
twenty percent of the rentable square footage shall be determined based
on the aggregate usage of all such properties.
(c) Hotel uses, as described in subdivision d of this section, shall
not be considered residential.
(2) Utility property. No abatement benefits under this part shall be
provided for utility property.
(3) Restricted activity. No benefits pursuant to this part shall be
granted for construction work on property any part of which is to be
used for a restricted activity.
d. Hotel uses. Benefits shall be available for commercial construction
work or renovation construction work on a building or structure for the
property's square footage used to provide lodging and support services
for transient guests.
e. Filing requirements. (1) Time to file. (a) Preliminary application.
(i) Building permit. No benefits pursuant to this part shall be granted
for any construction work unless the applicant filed a preliminary
application for such benefits on or before the date of issuance of the
first building permit for such work. This requirement may be satisfied
where the applicant's architect, contractor or other representative
authorized to file the application for such building permit files with
the department on behalf of the applicant a preliminary application
containing such information as the department shall prescribe by rule.
(ii) No building permit required. Where construction work does not
require a building permit, a notarized letter from the project's
architect or engineer notifying the department of this fact shall be
filed within thirty calendar days of the commencement of construction.
In such circumstance, such letter shall also satisfy the requirement of
a preliminary application if the letter contains all of the information
required for a preliminary application under rules prescribed by the
department.
(b) Final application. Applicants shall file a final application for
benefits no later than one year from the date of issuance of the first
building permit for construction work, or, where construction work does
not require a building permit, no later than one year from the date of
commencement of construction.
(2) Who may file for benefits. An applicant shall be:
(a) obligated to pay real property tax on the property, either by
virtue of ownership or contract; or
(b) the record owner or lessee of property that is exempt from real
property taxation who has entered into an agreement to sell or lease
such property to another person. Such applicant shall be a co-applicant
with such owner or lessee.
(3) Applicant affidavit. No benefits pursuant to this part shall be
granted for any construction work unless the applicant provides,
together with the final application, an affidavit setting forth the
following information:
(a) a statement that within the seven years immediately preceding the
date of the preliminary application for benefits, neither the applicant,
nor any person owning a substantial interest in the property as defined
in subparagraph (c) of this paragraph, nor any officer, director or
general partner of the applicant or such person was finally adjudicated
by a court of competent jurisdiction to have violated section two
hundred thirty-five of the real property law or any section of article
one hundred fifty of the penal law or any similar arson law of another
state with respect to any building, or was an officer, director or
general partner of a person at the time such person was finally
adjudicated to have violated such law; and
(b) a statement setting forth any pending charges alleging violation
of section two hundred thirty-five of the real property law or any
section of article one hundred fifty of the penal law or any similar
arson law of another jurisdiction with respect to any building by the
applicant or any person owning a substantial interest in the property as
defined in subparagraph (c) of this paragraph, or any officer, director
or general partner of the applicant or such person.
(c) "Substantial interest" as used in this subdivision shall mean
ownership and control of an interest of ten percent or more in a
property or any person owning a property.
(d) If any person described in the statement required by subparagraph
(b) of this paragraph is finally adjudicated by a court of competent
jurisdiction to be guilty of any charge listed in such statement, the
recipient shall cease to be eligible for benefits pursuant to this part
and shall pay with interest any taxes for which an abatement was claimed
pursuant to this part.
f. Requirement to file income and expense statements. No benefits
pursuant to this part shall be granted for any property unless income
and expense statements are filed for the property with respect to the
tax year as to which the assessment roll described in paragraph (2) of
subdivision b of section 11-269 of this part applies, and all subsequent
tax years up to and including the tax year on which the assessment roll
described in paragraph (3) of subdivision b of section 11-269 of this
part applies.
g. Co-application with public entity. A co-applicant with a public
entity may be eligible for abatement benefits, provided that for any
period for which the property is exempt from real property tax because
it is owned or controlled by a public entity, no benefits shall be
available to such recipient under this part. Such recipient may receive
benefits under this part when the property is no longer eligible for an
exemption as follows: (1) No benefits under this part shall be provided
during the period of exemption; (2) during such period of exemption, the
years of the benefit period applicable to the project provided in
subdivision c of section 11-269 of this part shall not be tolled, but
shall run in accordance with the applicable schedule provided therein;
and (3) the recipient shall, starting with the date the exemption
ceases, and continuing until the abatement benefit period expires,
receive the abatement benefits to which such recipient is entitled in
the tax year that corresponds to the year of the benefit period provided
in subdivision c of section 11-269 of this part.
Section 11-271
§ 11-271 Applying for benefits. a. Application. (1) Application for
benefits pursuant to this part may be made immediately following the
effective date of the local law that added this section and continuing
until March first, two thousand fifteen.
(2) Application content. The preliminary and final applications shall
be in any format designated by the commissioner, including electronic
format. The applications shall require, and applicants shall provide,
information and documentation sufficient to determine eligibility for
abatement benefits. The required information and documentation for both
applications shall be prescribed by the department by rule. Such
information and documentation may include, but need not be limited to,
certified statements related to the project, project costs, filings with
other governmental entities, and work performed or to be performed on
such project. At the department's sole discretion, an applicant may be
required to furnish certified statements made by the applicant's
architect or engineer or both.
(3) Compliance. The application shall also state that the applicant
agrees to comply with and be subject to the rules issued from time to
time by the department to secure compliance with all applicable city,
state and federal laws or which implement mayoral directives and
executive orders designed to ensure equal employment opportunity. If
required by local law or rule, such application shall also state that
the applicant agrees to comply with the program established thereby to
ensure meaningful participation of minority and women-owned business
enterprises in construction work for which the applicant receives
benefits.
(4) Affidavit of no violations. No benefits pursuant to this part
shall be granted for any construction work unless the applicant shall
file with the application, the affidavit required under paragraph (3) of
subdivision e of section 11-270 of this part.
(5) Electronic filing of application. The commissioner may, by rule,
require any application for benefits under this part to be submitted
electronically in such form and manner as the commissioner may
determine. For good cause, the commissioner may waive any rule requiring
electronic filing and may permit an application to be filed in another
manner.
b. Fees. The department may provide by rule for reasonable
administrative charges or fees necessary to defray expenses in
administering this benefit program.
c. (1) No benefits pursuant to this part shall be granted for
construction work performed pursuant to a building permit issued after
April first, two thousand fifteen.
(2) If no building permit was required, then no benefits pursuant to
this part shall be granted for construction work that is commenced after
April first, two thousand fifteen.
Section 11-272
§ 11-272 Reporting requirement. a. Continuing use. For the duration of
the benefit period, the recipient of benefits shall file biennially with
the department, on or before the appropriate taxable status date, a
statement of the continuing use of such property and any changes in use
that have occurred, provided, however, that any recipient of benefits
receiving benefits for property defined as a peaking unit shall file
such statement biannually. This statement shall be in a form determined
by the department and may be in any format the department determines, in
its discretion, is appropriate, including electronic format. The
department shall have authority to terminate such benefits upon failure
of a recipient to file such statement by the appropriate taxable status
date. The burden of proof shall be on the recipient to establish
continuing eligibility for benefits and the department shall have the
authority to require that statements filed under this subdivision be
certified.
b. Conversion of construction. A recipient shall file an amendment to
the latest statement of continuing use prior to:
(1) converting square footage within property that is the subject of
benefits for industrial construction work from use for the manufacturing
activities described in such statement of continuing use where such
conversion would result in less than sixty-five percent of total net
square footage being used or held out for use for manufacturing
activities; or
(2) converting any portion of property that is the subject of benefits
for industrial construction work for use for any restricted activity or
as residential property.
(3) For all other use conversions, applicants shall immediately notify
the department of a change in use, in a manner that the department may
determine.
c. Minimum required expenditure. No later than sixty days after the
minimum required expenditure must be made under subdivision a of section
11-270 of this part, the applicant shall submit to the department a
certified statement that the applicant has made the minimum required
expenditure as required by this part.
Section 11-273
§ 11-273 Conversion of property. a. Conversion from commercial to
industrial use. Where a property has been granted benefits for
commercial or renovation construction work, but such property is used as
industrial property before the benefits period expires, such property
shall continue to receive benefits for commercial or renovation
construction work.
b. Conversion from industrial use to commercial use. Where a property
has been granted benefits for industrial construction work, and where,
before the benefit period expires, less than seventy-five percent of the
total net square footage is used or held out for use for manufacturing
activities, no further benefits for industrial construction work shall
be provided except as provided in this subdivision. Taxes, together with
interest, shall become due and owing after such date of the use for
purposes other than industrial, except as provided in this subdivision.
(1) Any applicant whose property has been granted a tax abatement
under this part for industrial construction work in a special commercial
abatement area who would have been eligible to receive benefits for
commercial construction work at the time such applicant applied for
benefits shall continue to receive an abatement for industrial
construction work.
(2) Any applicant whose property has been granted benefits under this
part for industrial construction work other than in a special commercial
abatement area who would have been eligible to receive benefits for
commercial construction work at the time such applicant applied for
benefits shall, commencing with the date of conversion to commercial
property and continuing until the expiration of the benefit period for
commercial construction work, receive any abatement which such applicant
would have received in the corresponding tax year pursuant to the
benefits granted for commercial construction work.
(3) Any applicant whose property has been granted benefits under this
part for industrial construction work in any area of the city on whose
property at least sixty-five percent of the net square footage continues
to be used or held out for use for manufacturing activities after
conversion to commercial property, shall not be required to pay the pro
rata share of tax for which an abatement was claimed during the tax year
in which such conversion occurred.
(4) Where the property is receiving the additional industrial
abatement pursuant to paragraph (5) of subdivision c of section 11-269
of this part, such additional industrial abatement shall cease from the
date of conversion to commercial property.
c. Conversion to restricted use. Any applicant whose property has been
granted benefits for commercial, industrial or renovation construction
work, and who uses such property for any restricted activity prior to
the expiration of the benefit period, shall cease to be eligible for
further abatement as of the date such property was first used for any
restricted activity. Such recipient of benefits that cease under this
subdivision shall pay with interest any taxes for which an abatement was
claimed after such date, including the pro rata share of tax for which
any abatement was claimed during the tax year in which such use
occurred.
d. Conversion to residential use. (1) Any applicant whose property has
been granted benefits for commercial, industrial or renovation
construction work and who, before the benefit period expires, uses the
property or a portion of the property as residential property, shall
cease to be eligible for further abatement for commercial, industrial or
renovation construction work as of the date such property was first used
as residential property, as follows:
(a) if twenty percent or more of the rentable square footage of the
property is used as residential property, then the entire building shall
cease to be eligible for further abatement;
(b) if less than twenty percent of the rentable square footage of the
property is used as residential property, then that portion of such
property used as residential property shall cease to be eligible for
further abatement;
(c) notwithstanding subparagraph (b) of this paragraph, where less
than five percent of a property's rentable square footage is used as
residential property, that use will be considered de minimus and will
not be a basis for benefits to cease under this subdivision; and
(d) such recipient of benefits that cease under this subdivision shall
pay, with interest, any taxes for which an abatement was claimed after
the conversion of the property as described in this subdivision,
including the pro rata share of tax for which such abatement was claimed
during the tax year in which such use occurred. The abatement shall
continue for the commercial, industrial or renovation construction work
for the portion of the property that continues to be used for commercial
purposes.
(2) For purposes of paragraph (1) of this subdivision, "property"
means the real property contained by an individual tax lot.
(3) Notwithstanding paragraph (2) of this subdivision, where a
building or structure is owned in condominium form, and an application
for benefits under this part includes more than one property in the same
condominium, then for purposes of this subdivision, the five percent and
twenty percent of the rentable square footage shall be determined based
on the aggregate usage of all such properties.
e. Conversion to retail use. (1) Where a property has been granted
benefits for industrial or commercial construction work in special
commercial abatement areas on buildings where not more than ten percent
of the building or structure is used for retail purposes and where,
before the benefit period expires, the property or a portion thereof is
converted so that ten percent or more of the building or structure is
used for retail purposes, the department shall recalculate the abatement
upon conversion as provided in subdivision six of this section.
(2) Where a property has been granted benefits for renovation
construction work in renovation areas and where, before the benefit
period expires, the property or a portion of the property is converted
so that more than five percent of the building or structure is used for
retail purposes, the department shall recalculate the abatement upon
conversion as provided in subdivision f of this section.
e-1. Conversion of use by peaking units. Any applicant whose property
has been granted benefits under this part for industrial construction
work as a peaking unit and who converts such property in any tax year to
a use that no longer qualifies it as a peaking unit, or who uses such
property in a manner inconsistent with the definition of a peaking unit,
shall be ineligible for abatement benefits during any such tax year. Any
such recipient of benefits shall pay with interest taxes for which an
abatement was claimed during any portion of such tax year.
f. Recalculation of abatement upon conversion. If, during the benefit
period, a recipient converts square footage within any building or
structure, the department may recalculate the benefit granted pursuant
to this part to reflect the benefit for which the current use is
eligible under this part and rules that may be promulgated by the
department.
g. The burden shall at all times be on the recipient to demonstrate by
clear and convincing evidence that property subject to benefits under
this part is used as stated in the preliminary and final applications
for benefits filed by the recipient with the department.
Section 11-274
§ 11-274 Temporary commercial incentive area boundary commission;
designation of special commercial abatement areas; excluded and
renovation areas.
a. Commission members. There shall be a temporary commercial incentive
area boundary commission to consist of the deputy mayor for economic
development and planning, the commissioner of finance, the chair of the
city planning commission, the director of management and budget, the
borough presidents, the speaker of the city council and a public member
appointed by the mayor to serve at the mayor's pleasure. Each member
except the public member shall have the power to designate an alternate
to represent him or her at commission meetings to exercise all the
rights and powers of such member, including the right to vote, provided
that such designation be made in writing to the chair of the commission.
The deputy mayor for economic development and planning shall serve as
commission chair. Each borough president shall be entitled to vote only
on the designation of areas within his or her borough. Commission
members who shall be officers or employees of such city shall serve
without compensation but shall be reimbursed for expenses necessarily
incurred in the performance of their duties. Any other commission member
shall receive as exclusive compensation for his or her services one
hundred dollars per diem, or another reasonable amount as determined by
the deputy mayor for economic development and planning, provided,
however, that the total compensation paid to any such member shall not
exceed twelve hundred dollars for any calendar year, or another
reasonable amount determined by the deputy mayor for economic
development and planning. A majority of members of such commission
entitled to vote on a matter shall constitute a quorum for such issue.
Decisions shall be made by majority vote of those present entitled to
vote on a matter. Notwithstanding any other law to the contrary, no
officer or employee of the state or any of its subdivisions or any
public benefit corporation shall be deemed to have forfeited his or her
office or employment or any benefits provided under the retirement and
social security law or under any public retirement system maintained by
the state or any of its subdivisions by reason of accepting membership
on such commission.
b. Designation of special commercial abatement areas. (1) The
commission shall meet in two thousand nine and at least once every five
years thereafter to determine the boundaries of special commercial
abatement areas which it is authorized, but not required, to designate
pursuant to this section. The areas designated by the commission
established pursuant to title two-D of article four of the real property
tax law in effect as of June thirtieth, two thousand eight shall remain
in effect until the first taxable status date after the city council
approves a new designation pursuant to paragraph (4) of this
subdivision.
(2) In years when special commercial abatement areas are to be
designated, no later than October first, the commission shall provide
public notice of such designation by publishing a notice at least once
in a newspaper of general circulation setting forth the proposed
boundaries. Notice may also be provided electronically or in an
electronic medium, such as a website, in a manner the commission
determines to be appropriate. Notice must be provided not earlier than
five nor later than fifteen days before the date of the commission's
public hearing to hear all persons interested in the designation of the
areas. The notice required by this paragraph shall be published in the
City Record and a newspaper of general circulation in the city, and
copies thereof shall be forwarded to each council member and community
board.
(3) The commission shall make such designation, and notify the city
council of such designation, not later than November first of each year
when special commercial abatement areas are to be designated.
(4) Within thirty days after the first stated meeting of the city
council following the receipt of notice of such designation, the city
council may, by majority vote, disapprove such designation. If, within
such thirty-day period, the city council fails to act or fails to act by
the required vote, the city council shall be deemed to have approved
such designation. Such designation shall take effect on the first
taxable status date after the city council approves such designation and
shall remain in effect until the first taxable status date after the
city council approves such new designation.
(5) The commission may designate any area other than the area lying
south of the center line of 96th Street in the borough of Manhattan, to
be a special commercial abatement area if it determines that market
conditions in the area are such that the availability of a special
abatement is required in order to encourage commercial construction work
in such area. In making such determination, the commission shall
consider, among other factors, the existence in such area of a special
need for commercial and job development, high unemployment, economic
distress or unusually large numbers of vacant, underutilized, unsuitable
or substandard structures, or other substandard, unsanitary,
deteriorated or deteriorating conditions, with or without tangible
blight.
(6) If the commission fails to meet for more than five years, all new
applications for special commercial abatement area benefits postmarked
after the fifth anniversary of the commission's last meeting shall be
deemed applications for regular area benefits.
c. Renovation areas. The following areas in the borough of Manhattan
shall be designated as renovation areas. Except as provided in paragraph
(6) of subdivision c of section 11-269 of this part, new commercial
construction in a renovation area shall not be eligible for abatement
benefits. Renovation areas shall be limited to:
(1) the area in the borough of Manhattan bounded by Murray Street on
the north starting at the intersection of West Street and Murray Street;
running easterly along the center line of Murray Street; connecting
through City Hall Park with the center line of Frankfort Street and
running easterly along the center line of Frankfort and Dover Streets to
the intersection of Dover Street and South Street; running southerly
along the center line of South Street to Peter Minuit Plaza; connecting
through Peter Minuit Plaza to the center line of State Street and
running northwesterly along the center line of State Street to the
intersection of State Street and Battery Place; running westerly along
the center line of Battery Place to the intersection of Battery Place
and West Street; and running northerly along the center line of West
Street to the intersection of West Street and Murray Street;
(2) the area in the borough of Manhattan defined as the special
garment center district by chapter one of article XII of the zoning
resolution of the city; and
(3) the area in the borough of Manhattan south of the center line of
59th street, other than the areas designated renovation areas by
paragraphs (1) and (2) of this subdivision.
d. Commercial exclusion area. Except as provided in paragraph (6) of
subdivision c of section 11-269 of this part, any area in the borough of
Manhattan lying south of the center line of 96th Street, other than the
areas designated renovation areas by subdivision c of this section,
shall be a commercial exclusion area. Commercial construction projects
in the commercial exclusion area shall not be eligible to receive tax
abatements pursuant to this part.
e. Eligible industrial construction projects may receive tax
abatements pursuant to paragraphs (2) and (5) of subdivision c of
section 11-269 of this part in any area of the city.
Section 11-275
§ 11-275 Administration of the benefit program. The department shall
have the following additional functions, powers and duties:
a. To require that any documents submitted in support of or as part of
an application be certified;
b. To audit documents submitted by an applicant, to require the
production of books, records and documents with respect to information
relating to any application made pursuant to, or whether the applicant
has complied with, the requirements of this part;
c. To revoke or suspend benefits due to non-compliance with a request
made under this section;
d. to enter and inspect property to determine a property's use and to
determine whether (1) any such property is being used for any restricted
use, or
(2) any property for which benefits have been granted for industrial
construction work is being used as commercial property, or
(3) any industrial or commercial property is being used as residential
or mixed-use property, or
(4) all or part of the nonresidential portion of mixed-use property is
being used as residential property;
e. To make and promulgate a rule that increases up to fifty percent
the amount of the minimum required expenditure required under this part,
if, after consultation with the deputy mayor for economic development
and planning, the commissioner determines that a greater minimum
required expenditure is required to encourage significant industrial and
commercial development; and
f. To make and promulgate any other rules to carry out the purposes of
this part. Such rules shall provide that for construction work,
recipients of benefits and their contractors shall be equal opportunity
employers and may also provide that persons employed in the construction
work shall implement a training program for economically disadvantaged
persons enrolled or eligible to be enrolled in training programs
approved by the department of labor.
Section 11-276
§ 11-276 Penalties for non-compliance, false statements and omissions.
Denial, reduction, suspension, termination or revocation. The department
may deny, reduce, suspend, terminate or revoke any abatement benefits
where: a. A recipient fails to comply with the requirements of this part
or the related rules promulgated by the department; or
b. An application, certificate, report or other document delivered by
an applicant or recipient hereunder contains a false or misleading
statement as to a material fact or omits to state any material fact
necessary to make the statements not false or misleading, and may
declare any applicant or recipient who makes such false or misleading
statement or omission ineligible for future tax abatements for this
property or another property.
Section 11-277
§ 11-277 Code violations; suspension of benefits. a. If a court, or
the environmental control board with respect to matters within its
jurisdiction, finds that there has been a violation of the city
construction codes, the 1968 building code or other law or rule enforced
by the department of buildings classified as immediately hazardous
pursuant to chapter two of title twenty-eight of the administrative code
or the rules of the department of buildings; a violation of subdivision
a of section 1-102 of title fifteen of the rules of the city of New
York; or a violation of the city fire code or title three of the rules
of the city of New York, relating to the failure to provide a fire
protection system or emergency power system, or maintain it in good
working order, to prepare or, where required, submit for fire department
approval, a fire safety and evacuation plan or emergency action plan, or
to provide a fire safety and evacuation plan or emergency action plan
staff, or relating to the obstruction of a means of egress at any
property receiving benefits pursuant to this part, such benefits shall
be suspended unless, within one hundred eighty days after the department
of finance has sent notice of such finding to the recipient, the
recipient submits to the department of finance documentation from the
department of buildings, the department of environmental protection or
the fire department, whichever is applicable, certifying that the
underlying violation has been legally cured or corrected. Such notice
may be in any form determined by the department of finance, including in
electronic form, and shall be sent to the recipient on the next
quarterly statement of account after the department of finance has
learned of such finding. If the recipient fails to make the required
submission within the one hundred eighty day period, the suspension of
benefits shall continue until the recipient makes such submission to the
department of finance. After the recipient makes such submission,
benefits shall resume, but benefits lost during the period of suspension
shall not be restored.
b. If the original finding of violation or denial of certification is
appealed and a court or appropriate governmental agency finally
determines that the finding of violation or denial of certification was
invalid or erroneous, all benefits to which the recipient was otherwise
entitled shall be restored retroactively.
Section 11-278.
§ 11-278. Participation by minority-and women-owned business
enterprises. a. Policy and program established. It is the policy of the
city to encourage meaningful participation of minority-and women-owned
business enterprises in construction work for which an applicant
receives benefits under this part. A program is hereby established to
further the stated policy that will be administered by the division of
economic and financial opportunity within the department of small
business services, or any successor thereto, in accordance with the
provisions of this section.
b. Definitions. For purposes of this section, the following terms
shall have the following meanings:
1. "Directory" shall have the same meaning as provided in paragraph
thirteen of subdivision c of section 6-129 of this code.
2. "Division" shall mean the division of economic and financial
opportunity within the department of small business services.
3. "Minority-owned business enterprise" shall mean a minority-owned
business enterprise certified in accordance with section 1304 of the
charter.
4. "Women-owned business enterprise" shall mean a women-owned business
enterprise certified in accordance with section 1304 of the charter.
c. Information to be provided with the application for benefits. The
department shall provide with the application for benefits information
concerning how an applicant can access the directory from the division.
Making such information available may include, but need not be limited
to, providing information to applicants on how to access and search the
directory in electronic format. The application shall also include
information concerning an applicant's obligations under this part.
d. For construction projects between seven hundred fifty thousand
dollars and one million five hundred thousand dollars in cost, the
applicant shall certify that it accessed the directory. The applicant
shall file such certification with the department in conjunction with
the final application for benefits along with a report of whether or not
efforts were made by the applicant to include minority- and women-owned
business enterprises in the construction work on property for which
benefits are sought in accordance with this part, and if so, what such
efforts were.
e. For construction projects one million five hundred thousand dollars
in cost and over, the applicant must comply with the following
requirements in order to obtain benefits under this part:
1. Subsequent to filing a preliminary application for benefits, the
applicant shall inform the division of contracting and subcontracting
opportunities at construction sites where the applicant will be
performing construction work subject to benefits pursuant to this part.
The division shall make information on such contracting and
subcontracting opportunities available to the general public by posting
such opportunities on its website.
2. The applicant shall review the directory to identify minority-or
women-owned business enterprises that may be qualified to perform
contracting or subcontracting work on construction projects subject to
benefits pursuant to this part.
3. For each subcontract on the project, the applicant shall solicit or
arrange for the solicitation of bids from at least three of such
minority- or women-owned enterprises to perform such subcontracting
work.
4. The applicant shall maintain records demonstrating its compliance
with the provisions of this subdivision.
5. When filing a final application for benefits with the department,
the applicant shall certify that it has complied with and will continue
to comply with the provisions of this subdivision. The certification
shall also include: (i) the name and contact information of every
minority- or women-owned business enterprise that the applicant
solicited bids from pursuant to the provisions of paragraph three of
this subdivision and (ii) whether any such minority- or women-owned firm
was awarded a subcontract.
f. The division shall have authority to audit the records maintained
by each applicant pursuant to paragraph four of subdivision e of this
section to ensure compliance with the requirements of such subdivision.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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