§ 56-02 Amount of Abatement.
RCNY § 56-02
An eligible building shall receive an abatement of real property taxes as provided in these rules.
(a)The amount of such tax abatement shall be calculated as follows: (i) 0.5, multiplied by (ii) the total approved cost of the MCI order issued by DHCR, multiplied by (iii) a fraction, where the numerator equals the increase, of the amortization schedule of the improvement established by the rent act of 2015, measured in months, and where the denominator equals the total new amortization period for the MCI established by the rent act of 2015 applied to the eligible building, measured in months.
(b)For eligible buildings with 35 or fewer residential units, the new amortization schedule for an MCI order increases from 7 to 8 years. For example: The property owner replaces a boiler of an eligible building, which costs the owner $10,000. 0.5 x $10,000 [approved cost of MCI order] = $5,000. $5,000 x (12 months)/ (96 months) [8 year amortization schedule] = $5,000 x 0.125 =$625. The MCI tax abatement for the building is $625.
(c)For eligible buildings with more than 35 residential units, the new amortization schedule for an MCI order increases from 7 to 9 years. For example: The property owner replaces a boiler of an eligible building, which costs the owner $10,000. 0.5 x $10,000 [approved cost of MCI order] =$5,000. $5,000 x (24 months/108 months) [9 year amortization schedule] = $5,000 x 0.222 = $1,111. The MCI tax abatement for the building is $1,111.
(d)The department will adjust the amount of the abatement if the DHCR MCI order is amended in the future. However, the original owner will not receive an adjustment in the abatement amount if the MCI was amended after the sale of the real property. If an MCI is amended after the sale, the new owner may apply for an adjustment to the abatement.
(e)The department will adjust the amount of the abatement if a subsequent assessment reduction by the New York City Tax Commission or a court of appropriate jurisdiction changes the amount of the abatement that would have been calculated under these rules. (Added City Record 7/11/2018, eff. 8/10/2018)
