§ 36-07 Minimum Required Expenditure.
RCNY § 36-07
a. The minimum required expenditure is based on a percentage of the property's final taxable assessed value, without regard to any exemptions, for 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. For commercial construction work the minimum required expenditure is 30 percent. Expenditures for residential construction work or construction work on portions of property to be used for restricted activities will not be included in the minimum required expenditure. For the additional industrial construction abatement set forth in 19 RCNY § 36-11, the minimum required expenditure is 40 percent. b. Eligible expenditures. Expenditures include but are not limited to those made for: (1) construction contracts; (2) materials, labor, equipment rental, insurance, permit fees and other direct expenses of construction; (3) installation of partitions and other tenant work by or for the tenant or occupant of new or substantially renovated space; (4) architectural, engineering, construction management, legal, accounting and other professional services rendered in connection with the construction work to the extent that the total of all such fees do not exceed 10 percent of the expenses incurred for direct construction costs; (5) site preparation, such as the erection of partitions, fences, barricades, scaffolding, temporary walkways, removal of debris or any similar work allocable to the project; and (6) fees for connection to existing sewer, water or utility lines. c. Ineligible expenditures. The following are ineligible expenditures: (1) the costs of selecting or acquiring the site; (2) the costs of determining the feasibility of the project; (3) the costs of moving or installing machinery or equipment, except the cost of installing equipment that is real property and installed as part of the project; (4) charges to any reserve, contingency or sinking fund; (5) the costs of earthwork or demolition except as provided in 19 RCNY § 36-06(d); (6) the costs or payments for the extension of streets, sewers, water lines or other public utilities to a site not provided with these services; and (7) the cost or payments associated with vacating the site or existing buildings such as terminating existing leases or tenancies. d. Expenditures for construction work for mixed use properties related to the common areas and systems of such property will be allocated, if applicable, between the residential, nonresidential and retail portions of the property based on a pro rata square footage basis. e. No later than 60 days after the minimum required expenditure must be made – four years from the date of the first building permit, or from the start of construction if no permit was required – the applicant must submit to the department a certified statement that the applicant has made the minimum required expenditure as required by this chapter. (Added City Record 2/10/2017, eff. 3/12/2017)
