§ 5-03 Eligible Projects and Eligibility Requirements.
RCNY § 5-03
(a)Eligible projects. Subject to the limitations relating to single room occupancy and permanent residential use set forth in 28 RCNY §§ 5-03(f)(4), 5-04(a)(4) and 5-07(f)(1), the following classes of projects may be granted tax exemption and tax abatement: (1) Conversion of any building or structure classified as a Class B multiple dwelling or a Class A multiple dwelling used for single room occupancy into a Class A multiple dwelling, but only if the conversion is carried out with substantial governmental assistance.
(2)Conversion of residential units covered by Article 7-C of the Multiple Dwelling Law in buildings classified as interim multiple dwellings pursuant to such article and registered with the New York City Loft Board to units which are in compliance with the standards of safety and fire protection set forth in Article 7-B of the Multiple Dwelling Law or to units which have a Certificate of Occupancy as part of a Class A multiple dwelling. Provided, that if only a portion of a building is eligible as an interim multiple dwelling, benefits shall be pro-rated between such portion and the remaining part of the building.
(3)Conversion permitted as of right by the Zoning Resolution of any non-residential Building or structure situated in the borough of Manhattan into a Class A Multiple Dwelling, provided that the Conversion was completed prior to December 31, 2011.
(4)Conversion permitted as of right by the Zoning Resolution of any non-residential Building or structure situated in the boroughs of the Bronx, Brooklyn, Queens or Staten Island into a Class A Multiple Dwelling, provided that the Conversion was completed prior to December 31, 2011.
(5)Alterations or improvements to the exterior of a building visible from a public street, provided the alterations or improvements are made pursuant to a Permit for Minor Work, Certificate of Appropriateness, or Certificate of No Effect issued by the Landmarks Preservation Commission with respect to a landmark and the building or structure is otherwise eligible and either an existing dwelling or a building other than a private dwelling, which is being converted into a Class A multiple dwelling. Such alterations are eligible for the full amount spent on the required work whether or not the work qualifies as an MCI, provided, however, that each item of work must appear on the Itemized Cost Breakdown Schedule as set forth in 28 RCNY § 5-08.
(6)Alterations or improvements constituting a moderate rehabilitation of a substantially occupied Class A multiple dwelling, provided the project meets all the conditions set forth below: (i) The scope of work must includes a major capital improvement in not less than one of the following five categories designated below: (A) Elevators: (a) Replacement of existing unit in its entirety; (b) Replacement of traction machine; (c) Replacement of one or two-speed controller; or (d) Conversion of manual to automatic. (B) Heating: (a) Boiler and/or burner replacement; or (b) Piping, heat, mains, risers, branches in all dwelling units. (C) Plumbing: (a) Piping (gas), risers and branches in all dwelling units; (b) Piping (waste and vent), mains, risers branches in all dwelling units; (c) Piping (water-main and risers), mains, risers, branches in all dwelling units; or (d) Sprinklers, in entire building. (D) Wiring: (a) Adequate in all dwelling units; or (b) New in all dwelling units. (E) Window and trim replacement: provided that all the windows are replaced in at least ninety percent (90%) of all residential units; and (ii) The scope of work must have an average certified reasonable cost of not less than two thousand five hundred dollars ($2,500) for each dwelling unit in existence at the commencement of construction of the rehabilitation, comprised exclusively of major capital improvements, exclusive of any certified reasonable cost for ordinary repairs.
(iii)For the purpose of moderate rehabilitation, a Class A multiple dwelling is substantially occupied if at least sixty percent (60%) of the units are occupied by permanent residential tenants immediately prior to the start of rehabilitation, during the entire period of rehabilitation (except, in substantially governmentally assisted projects, for temporary periods of relocation pursuant to a governmentally supervised plan of temporary relocation) and immediately subsequent to completion of construction of the rehabilitation.
(7)Alterations or improvements to an existing dwelling; provided that such items of work are set forth in 28 RCNY § 5-08 and are necessary to eliminate presently existing unhealthy or dangerous conditions or to replace inadequate and obsolete sanitary facilities, including asbestos abatement to the extent required by any federal, state or local law.
(8)Alterations or improvements designated as energy conservation items in 28 RCNY § 5-08. In order to be eligible pursuant to this paragraph the building being altered or improved must be an existing dwelling.
(9)Alterations or improvements commenced on or after September 1, 1987 constituting a substantial rehabilitation of a Class A multiple dwelling or a conversion of a building or structure into a Class A multiple dwelling as part of a program to provide housing for low and moderate income households, provided that: (i) such alterations or improvements or conversions shall be aided by a grant, loan or subsidy from any federal, state or local agency or instrumentality. For purposes of this paragraph, the term "low and moderate income households" shall mean households having an annual household income no greater than one hundred sixty-five percent (165%) of area median income for the Metropolitan Statistical Area as determined by HUD. Notwithstanding the foregoing sentence, HPD shall grant benefits to a building if no more than eighty percent (80%) of units are rented to households having an annual household income no greater than one hundred eighty percent (180%) of such area median income, provided at least twenty percent (20%) of the units in such building are rented to households with an annual household income no greater than eighty percent (80%) of such area median income.
(ii)[Reserved.] (10) Conversion of a property classified under the zoning resolution as a non-profit institution with sleeping accommodations into a Class A multiple dwelling, but only if such conversion is carried out with substantial governmental assistance.
(11)Alterations or improvements to any private dwelling, or conversion of any private dwelling to a Class A multiple dwelling, or conversion of any multiple dwelling to a private dwelling, provided that in each instance the alterations, improvements or conversion are carried out with substantial governmental assistance.
(b)Eligible items of work: major capital improvements.
(1)Items of work designated as major capital improvements in the itemized cost breakdown schedule contained in 28 RCNY § 5-08 shall be eligible for tax benefits. Except for purposes of 28 RCNY § 5-03(c)(1)(iii), any item of work set forth in 28 RCNY § 5-08 shall also be considered a major capital improvement if done pursuant to an Alteration Type-I Permit issued by the Department of Buildings or if it is part of the scope of work of a moderate rehabilitation.
(c)Eligible items of work: ordinary repairs.
(d)Time Requirements.
(2-a)For a project with multiple Buildings eligible for the sixty-month completion period established pursuant to subparagraph (C) of paragraph one of this subdivision in which all of the Buildings in such project are not completed within such period, separate applications for benefits may be filed either for: (A) different items of governmentally-assisted work completed within such sixty-month period, or (B) benefits for separate Buildings or separate groups of Buildings that are on the same tax block and lot and are completed within such sixty-month period, provided that separate Building Permits are in effect for each such filing.
(e)Construction and maintenance requirements.
(i)Buildings converted to Class A multiple dwellings, buildings where the configuration has been altered to increase the number of units, and existing dwellings which have been substantially rehabilitated must contain bedrooms in a number equal to seventy-five (75%) percent of the dwelling units contained therein in order to be eligible to receive tax benefits.
(iv)For purposes of the bedroom count requirement set forth in subparagraphs (i) and (ii) above, dwelling units which contain a combined living/dining/kitchen space in excess of three hundred and twenty-five square feet may be deemed to include both a kitchen and living room, so that any additional rooms may be considered bedrooms, under subparagraphs (i) and (ii) above.
(f)Rent regulatory requirements.
(g)Eligibility rules for Cooperatives and Condominiums.
(v)For purposes of determining the number of rooms in applying the limitations contained in 28 RCNY § 5-03(g)(2)(iv), the number of zoning rooms shall be used unless there is no filing with the Department of Buildings indicating the number of zoning rooms, in which case the number shall be: (A) the number of rooms as evidenced in the Offering Plan, or (B) at the discretion of the Office, the number of rooms as certified by a licensed architect.
(vi)Where the Building is occupied in part for residential purposes and in part for non-residential purposes, the Actual Assessed Value of the property shall be allocated by the Office between the residential and the non-residential portions based on pro rata Floor Area, unless the non-residential portion is on a separately assessed tax lot, in which case only the amount of Actual Assessed Value allocated to the residential portion shall be considered in computing the Actual Assessed Value per dwelling unit for purposes of 28 RCNY § 5-03(g)(2)(iv).
(h)Special requirements for moderate rehabilitation and special non-harassment provisions.
