Application Process: Only initial application required
In 2009, 45,645 exemptions were issued worth $17.52 billion.
Programs limited to designated geographic areas meeting specific criteria
Local government must take action to opt in
In the case of the 13-year exemption, there is no local option. In the case of the 18-year, 23-year, and 28-year exemptions, the local option is as follows: The local housing agency may choose whether or not to allow the exemption. This option must be exercised through adoption of rules and regulations. However, in the case of all four exemptions, the city may, by enacting a local law, further restrict the eligibility requirements, scope of exemption (including eligible areas), and amount of benefits under this statute.
To the extent allowed by the city, new multiple dwellings in New York City that are constructed during a certain time period are partially exempt from taxation, but liable for special assessments. The exemptions are as follows: (1) 13-year exemption: for the construction period not to exceed 3 years, along with year 1 and 2, 100% of assessed value is exempt. A phase out of the benefit begins thereafter every 2 years at 20% until reaching year 10; (2) 18-year exemption: for the construction period not to exceed 3 years, along with years 1-11, 100% of assessed value is exempt. A phase out of the benefit begins thereafter every year at 20% until reaching year 15; (3) 23-year exemption: for the construction period not to exceed 3 years, along with years 1-12, 100% of assessed value is exempt. A phase out of the benefit begins thereafter every 2 years at 20% until reaching year 20; (4) 28-year exemption: for the construction period not to exceed 3 years, along with years 1-21, 100% of assessed value is exempt. A phase out of the benefit begins thereafter every year at 20% until reaching year 25.
Incentives Restricted to Certain Industries or Uses
Project must be located on land that, 36 months prior to start of construction, was vacant, predominantly vacant, underutilized, or improved with a nonconforming use.
If the new dwelling replaces a demolished residential building and contains more than 20 dwelling units, the new dwelling must contain at least 5 dwelling units for each Class A dwelling unit demolished.
If the new dwelling contains more than 100 dwelling units, at least 15% of the units must contain 3-1/2 rooms or more and at least 10% of the units must contain 4-1/2 rooms or more, unless this requirement has been waived by the NYC Department of Housing Preservation and Development.
Local Voter Approval
Local Legislative Body Approval
Housing developments within NYC are eligible.
Business and Industry Specific Districts
In the case of all four types of exemption, the property must be located in New York City. In addition, it must not be located in an area where exemption has been disallowed by the NYC Department of Housing Preservation and Development because a tax incentive in the area is not needed, unless (1) the dwelling is less than 4 stories in height and (2) construction began before 1 January 1982 or within 2 years of the date that exemption was disallowed.
18-Year Exemption: property must not be located in an area excluded by local law from eligibility for the 13-year exemption. If the property is located in Manhattan south of or adjacent to either side of 110th Street, or if the project is located partially within the Greenpoint-Williamsburg waterfront exclusion area and partially outside the exclusion area but within Brooklyn Community District Number One, it must comply with certain additional requirements.
23-Year Exemption: property must be located in Manhattan south of or adjacent to either side of 110th Street.
28-Year Exemption: property must be located in a neighborhood preservation program area as determined by the local housing agency, an area eligible for mortgage insurance, an area receiving funding for a neighborhood preservation project, or another area provided that certain requirements are met, as detailed in statute.
N.Y. R.P.T Law § 421-a (in effect for 2009)
This record includes materials submitted by the state contact.
CAT05 2014/06/24 GIR: NEW: FN2 - A05568 (2009) revised the the deadline for beginning an exemption from December 28, 2010 to December 28, 2013; updated date in FN1
Link to index of exemption administration manual:http://www.orps.state.ny.us/assessor/manuals/vol4/part1/section2/sec2.01.htm
1) Removed from incentive box as this belongs in eligibility criteria - where in effect this information was also captured: "provided that the property is not exempt from taxation under any other law, the project is located on land that, 36 months prior to start of construction, was vacant, predominantly vacant, underutilized, or improved with a nonconforming use, and if the new dwelling replaces a demolished residential building and contains more than 20 dwelling units, the new dwelling satisfies certain conditions regarding the type or size of dwelling units provided." Also added current breakdown of 4 exemptions. 2) Removed large chunk of description of eligibility criteria as it provided too much detail of what was not to be included: "The property must not include land mapped as a public park, unless for at least 10 years after mapping, the land has not been acquired by the state or city, the city Department of Parks and Recreation has determined that the land is not required for public park purposes, that department has no intention of acquiring the land, and no moneys have been allocated for its acquisition.
The property must not include land used for 10 or more consecutive years prior to 1 October 1971 as a "private park," defined as a privately owned zoning lot in a densely developed area having a maximum size of 4,000 sq. ft., free of developments and containing only trees, grass, benches, walkways, and passive recreational facilities, which has been used and maintained during such period for such passive recreational activity by the general public without charge and with the consent and participation of the owner.
If a local law exists providing for the stabilization of rents in multiple dwellings, the rents of the dwelling exempt under RPTL §421-a are subject to control under that local law, unless they are exempt from such control by reason of cooperative or condominium status, for the entire period during which the property is receiving §421-a benefits or for the period during which the local law is in effect, whichever is shorter. This period may be extended if rent-control provisions other than those contained in RPTL §421-a become applicable.
The property must not be used as a hotel.
A project which consists of new construction and either rehabilitation of an existing multiple dwelling or conversion of non-residential space into residential space (or a combination of such rehabilitation and conversion) must set apart at least 51% of the floor space as new space." 3) Removed and edited 28-year exemption in geographic area criteria text box. Deleted these details: "as of 6/1/85, a neighborhood preservation area as determined by the NYC Planning Commission as of 6/1/85, an area eligible for mortgage insurance provided by the Rehabilitation Mortgage Insurance Corporation, an area receiving funding for a neighborhood preservation project pursuant to the Neighborhood Reinvestment Corporation Act (42 USC 180 et seq.) as of 6/1/85, or another area provided that certain requirements are met (see Property Use Requirements below). Property must not be located (1) in an area excluded by local law from eligibility for the 13-year exemption or (2) in Manhattan south of or adjacent to either side of 110th Street." 4) Also edited all dates to read correctly.
Enrollment data provided by 2010 New York State Contact Survey.
6/24/14 GIR: Correction
8/1/2010 CS New Record
3/3/2011 CS Update- incentive, geographic area, eligibility criteria
8/31/11 cc verified without checking
08/30/2012-ES verified
