This bill would require the Department of Housing Preservation and Development to audit buildings receiving benefits under the 421-a tax exemption program to ensure that such buildings are complying with the applicable affordability requirements.
- Introduced
History
Int. No.
By Council Members Levin and Williams
A Local Law to amend the administrative code of the city of New York, in relation to auditing buildings for compliance with the affordability requirements of the 421-a tax exemption program
Be it enacted by the Council as follows:
Section 1. Title 26 of the administrative code of the city of New York is amended by adding a new chapter 12 to read as follows:
CHAPTER 12
AUDITS FOR COMPLIANCE WITH 421-A TAX EXEMPTION REQUIREMENTS
§ 26-1201 Definitions.
§ 26-1202 Audits.
§ 26-1203 Report.
§ 26-1201 Definitions. For the purposes of this chapter:
Affordability requirements. The term “affordability requirements” means any requirement that one or more dwelling units within a building receiving benefits under section 421-a of the real property tax law be occupied by or available for occupancy by individuals or families whose incomes at the time of initial occupancy do not exceed a certain threshold.
Department. The term “department” means the department of housing preservation and development.
§ 26-1202 Audit. The department shall audit no fewer than 20 percent of all buildings receiving benefits under section 421-a of the real property tax law annually to determine whether the owners of such buildings are in compliance with all applicable affordability requirements, have received a certification of eligibility and have approved applications for such benefits.
§ 26-1203 Report. Where an audit performed pursuant to section 26-1202 of this chapter reveals that a building owner is not (i) in compliance with the applicable affordability requirements (ii) does not have a certification of eligibility and / or (iii) does not have an approved application for such benefits, the department shall, within 60 days, report such building owner to the speaker of the council and to the department of finance for revocation of benefits under section 421-a of the real property tax law for the period of such noncompliance or, where the department determines that an on-going pattern of non-compliance exists, or that the owner does not have a certificate of eligibility and / or an approved application for such benefits, from the inception of such benefits.
§ 2. Chapter 1 of title 11 of the administrative code of the city of New York is amended by adding a new section 11-139 to read as follows:
§ 11-139 Report on revocations. Within 60 days after receiving a report from the department of housing preservation and development pursuant to section 26-1203 of the code, the department of finance shall report to the speaker of the council and to the mayor, a plan and a timeline for revocation of benefits under section 421-a of the real property tax law.
§ 3. This local law takes effect one year after it becomes law, except that the commissioner of housing preservation and development may take such actions as are necessary for its implementation, including the promulgation of rules, prior to such effective date.
LS 7739
JW
11/7/16 12:48p