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A09861 Summary:

BILL NOA09861
 
SAME ASSAME AS S08052
 
SPONSORLentol
 
COSPNSRDavila
 
MLTSPNSRNiou
 
Add 1277-b, Pub Auth L; amd 1115, Tax L; add 16-bb, UDC Act; add Art 4 Title 3-A 497 - 497-f, RPT L; amd 100, Ec Dev L
 
Relates to mitigating the closure of the L subway line in the city of New York; authorizes the MTA to develop a plan to mitigate the individual and economic hardships experienced by a temporary closure of the L subway line for repairs; establishes a sales tax exemption for goods and services sold in the L subway line closure area; establishes a tax abatement for commercial properties in the L subway line closure area; authorizes the NYC department of transportation to install additional traffic cameras around the L subway line closure area; authorizes the department of economic development to use showrooms for businesses affected by the temporary closure of the L subway line for repairs.
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A09861 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9861
 
SPONSOR: Lentol
  TITLE OF BILL: An act to amend the public authorities law, the tax law, the New York state urban development corporation act, the real property tax law and the economic development law, in relation to miti- gating the closure of the L subway line in the city of New York   PURPOSE OR GENERAL IDEA OF BILL: Relates to mitigating the closure of the L subway line in the city of New York.   SUMMARY OF PROVISIONS: The public authorities law is amended by adding a new section 1277-b. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 45. Section 1 of chapter 174 of the laws of 1968, consti- tuting the New York state urban development corporation act, is amended by adding a new section 16-aa. Article 4 of the real property tax law is amended by adding a new title 3-A.   JUSTIFICATION: This bill has been introduced to mitigate the damaging effects of the L-train shut-down during reconstruction. The intent of this legislation is to steady and secure our neighborhoods during the shut-down crisis. It is a crisis. The management of the L line shut down is crucial to the quality of life for local residents and the economic survival of our local businesses. A well run reconstruction will allow our neighborhoods to continue to thrive by providing easy and abundant passage between Williamsburg, the Northside and Manhattan. If the project and the concerns of the residents and businesses are ignored, this shut-down has the potential to completely destabilize our neighborhoods economic vitality.This legislation outlines programs that will mitigate the consequences the construction is likely to have on travel patterns.Our transportation leaders and economic leaders need to go above and beyond the usual way of managing projects by implementing the programs outline in this legislation. We want the shut-down to be a success story for everyone.   PRIOR LEGISLATIVE HISTORY: None. New for 2018.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: 90th day after it shall have become a law.
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A09861 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9861
 
                   IN ASSEMBLY
 
                                    February 14, 2018
                                       ___________
 
        Introduced by M. of A. LENTOL -- read once and referred to the Committee
          on Corporations, Authorities and Commissions
 
        AN  ACT  to  amend the public authorities law, the tax law, the New York
          state urban development corporation act, the real property tax law and
          the economic development law, in relation to mitigating the closure of
          the L subway line in the city of New York

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  public  authorities  law  is amended by adding a new
     2  section 1277-b to read as follows:
     3    § 1277-b. L subway line closure mitigation plan.  Notwithstanding  any
     4  other  provision  of  law to the contrary, the authority shall develop a
     5  plan to mitigate the individual and economic hardships experienced by  a
     6  temporary  closure  of  the  L subway line for repairs.  Such plan shall
     7  include, but need not be limited to, the following:
     8    1. Discounted advertising on all  authority  advertising  mediums  for
     9  businesses in the designated L subway line reconstruction area;
    10    2. Signage at above ground work sites which states that businesses are
    11  open. Such signage shall be provided by the company responsible for such
    12  above ground work site;
    13    3.  Grants to be awarded to artists for the creation of works suitable
    14  for display on a street, bus or ferry for the purpose of  drawing  visi-
    15  tors to the neighborhoods in the L subway line reconstruction area;
    16    4.  A  free  shuttle bus service for transit customers in the L subway
    17  line reconstruction area;
    18    5. Fare parity between ferry, bus and subway lines serving as alterna-
    19  tive routes during the temporary shutdown of the L subway line;
    20    6. Free MetroCard transfers on ferry, bus and subway lines serving  as
    21  alternative routes during the temporary shutdown of the L subway line.
    22    §  2.  Subdivision  (a)  of  section 1115 of the tax law is amended by
    23  adding a new paragraph 45 to read as follows:
    24    (45) (i) Food, beverages, goods or services sold in  a  business  zone
    25  area  from  April  first, two thousand nineteen until July thirty-first,
    26  two thousand twenty.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14751-02-8

        A. 9861                             2
 
     1    (ii) For purposes of this paragraph, "business zone area"  shall  mean
     2  those  businesses,  in  an  area  to  be determined by the commissioner,
     3  located in the city of New York and impacted by the  closure  of  the  L
     4  subway line.
     5    §  3.  Beginning April 1, 2019, the New York city department of trans-
     6  portation shall be authorized to  install  and  operate  traffic-control
     7  signal photo violation-monitoring devices along L subway line high occu-
     8  pancy  vehicle,  bus  and  bicycle  lanes, including but not limited to,
     9  along the Williamsburg Bridge, Grand Street and any other  location  the
    10  commissioner  of  the  New  York city department of transportation deems
    11  necessary.
    12    § 4. Section 1 of chapter 174 of the laws of  1968,  constituting  the
    13  New York state urban development corporation act, is amended by adding a
    14  new section 16-bb to read as follows:
    15    §  16-bb.  L subway line repairs emergency grant program. (1) There is
    16  hereby created an L subway line repairs emergency grant program for  the
    17  purpose  of  providing financial assistance to businesses located within
    18  the L subway line business zone area during periods of repair.
    19    (2) For the purposes of this section  the  following  words  or  terms
    20  shall mean as follows:
    21    (a)  "Qualified  business"  shall mean a business operating within the
    22  business zone area during a period of authorized repairs, and the  busi-
    23  ness has a demonstrated loss.
    24    (b)  "Business zone area" shall mean an area in which the chair of the
    25  corporation determines that repairs on the L subway  line  has  occurred
    26  that  has been certified by the commissioner for the Metropolitan Trans-
    27  portation Authority.
    28    (c) "Period of authorized repairs" shall mean those  dates  for  which
    29  the  chair  of  the  corporation determines that repairs on the L subway
    30  line has occurred for the specific portion of the business zone area.
    31    (d) "Demonstrated loss" means a ten percent decline in taxable  income
    32  in  the year in which the grant is applied for compared to the business'
    33  base fiscal year.
    34    (e) "Base fiscal year" means the tax year  immediately  preceding  the
    35  year in which repairs began in that portion of the business zone area in
    36  which the business is located.
    37    (3)  Assistance,  out of moneys made available for this program, shall
    38  be provided to qualified businesses for a period of three months for the
    39  following purposes:
    40    (a) rental payment assistance, whether for real property or  equipment
    41  and services; and
    42    (b) utilities, including but not limited to electricity, phone, cable,
    43  internet, and water.
    44    (4)  The chairman shall establish rules and regulations to ensure that
    45  all moneys given pursuant to this section  are  used  for  the  purposes
    46  specified  by  the  applicant.   If it is determined that a recipient of
    47  funds used the money in a manner inconsistent with the  information  set
    48  out  in his or her application, the applicant shall be required to reim-
    49  burse the corporation twice the amount given to the applicant.
    50    § 5. Article 4 of the real property tax law is amended by adding a new
    51  title 3-A to read as follows:
    52                                  TITLE 3-A
    53                    TAX ABATEMENT FOR CERTAIN COMMERCIAL
    54           PROPERTIES LOCATED WITHIN THE L SUBWAY LINE REPAIR AREA
    55  Section 497.   Definitions.
    56          497-a. Real property tax abatement.

        A. 9861                             3
 
     1          497-b. Eligibility requirements.
     2          497-c. Application for certificate of abatement.
     3          497-d. Enforcement and administration.
     4          497-e. Reporting requirements; revocation of abatements.
     5          497-f. Tax lien; interest and penalty.
     6    § 497. Definitions. When used in this title, the following terms shall
     7  mean or include:
     8    1. "Abatement base." The lesser of: (a) two dollars and fifty cents or
     9  (b) fifty per centum of the tax liability per square foot.
    10    2.  "Abatement zone." Any area located within the repair area of the L
    11  subway line as defined by the commissioner of the metropolitan transpor-
    12  tation authority, which has been located in such  area  and  continually
    13  been  doing  business  in  such area during the taxable year or years in
    14  which repairs occur.
    15    3. "Aggregate floor area." The sum of the gross areas of  the  several
    16  floors of a building, measured from the exterior faces of exterior walls
    17  or from the center lines of walls separating two buildings.
    18    4. "Applicant." The landlord and the tenant.
    19    5.  "Benefit  period." The period commencing with the first day of the
    20  month immediately following the rent commencement date  and  terminating
    21  no later than twenty-four months thereafter.
    22    6.  "Billable  assessed value." The lesser of the taxable transitional
    23  or the taxable actual assessed value of the eligible  building  and  the
    24  land  on  which  the eligible building is located for the fiscal year in
    25  which the benefit period commences.
    26    7. "Department of finance." The department of finance of the  city  of
    27  New York.
    28    8.  "Eligible  building."  A  non-residential  or  mixed-use  building
    29  located in the abatement zone.  Such eligible building shall not include
    30  any building owned by a governmental agency.
    31    9. "Eligibility period." The period commencing April first, two  thou-
    32  sand nineteen and terminating July thirty-first, two thousand twenty.
    33    10.  "Eligible  premises."  Premises  located  in an eligible building
    34  which are occupied or used as offices (including ancillary uses) or  are
    35  occupied or used as retail space.
    36    11.  "Fiscal year." The fiscal year of any city having a population of
    37  one million or more.
    38    12. "Governmental agency." The United States of America or any  agency
    39  or instrumentality thereof, the state of New York, the city of New York,
    40  any  public  corporation (including a body corporate and politic created
    41  pursuant to agreement or compact between the state of New York  and  any
    42  other  state),  public  benefit  corporation,  public authority or other
    43  political subdivision of the state.
    44    13. "Landlord." Any  person  who:  (a)  controls  all  non-residential
    45  portions  of  an  eligible  building, including, without limitation, the
    46  record owner,  the  lessee  under  a  ground  lease,  any  mortgagee  in
    47  possession or any receiver, and
    48    (b)  who  grants  the  right to use or occupy eligible premises to any
    49  tenant, provided that landlord shall not include any lessee who  at  any
    50  time during the lease term occupied or used or occupies or uses any part
    51  of  the  non-residential  portions of such eligible building, other than
    52  premises occupied or used by such lessee to provide rental or management
    53  services to such building.
    54    14. "Lease commencement date." The date set  forth  in  the  lease  on
    55  which the term of the lease commences.

        A. 9861                             4
 
     1    15.  "Mixed-use  building."  A  building used for both residential and
     2  commercial purposes, provided that more than twenty-five per  centum  of
     3  the aggregate floor area of such building is used or held out for use as
     4  commercial, community facility or accessory use space.
     5    16.  "Person."  An individual, corporation, limited liability company,
     6  partnership, association, agency, trust,  estate,  foreign  or  domestic
     7  government or subdivision thereof, or other entity.
     8    17. "Rent commencement date." The date set forth in the lease on which
     9  the obligation to pay basic fixed rent shall commence.
    10    18.  "Tax liability." The product obtained by multiplying the billable
    11  assessed value for the fiscal year in which the benefit period commences
    12  by the tax rate applicable to the eligible building for such fiscal year
    13  as set by the local legislative body of any city having a population  of
    14  one million or more.
    15    19.  "Tax liability per square foot." The tax liability divided by the
    16  total number of square feet in the eligible building, as listed  on  the
    17  records of the department of finance.
    18    20.  "Tenant."  A  person  (including  any successors in interest) who
    19  executes a lease with the landlord for the right to occupy  or  use  the
    20  eligible  premises and who occupies or uses the eligible premises pursu-
    21  ant to such lease. Tenant shall not include any subtenant.
    22    21. "Tenant's  percentage  share."  The  percentage  of  the  eligible
    23  building's  aggregate  floor  area  allocated  to the eligible premises,
    24  which shall be presumed to be such percentage as set forth in the  lease
    25  for  the  eligible  premises;  provided that where the eligible premises
    26  includes expansion premises, the "tenant's percentage  share"  shall  be
    27  calculated  on  the  basis  of the percentage of the eligible building's
    28  aggregate floor area allocated solely to the expansion premises.
    29    22. "Renewal tenant." A person who has  an  existing  lease  with  the
    30  landlord and renegotiates or renews such lease with the landlord for the
    31  right to occupy or use the eligible premises.
    32    § 497-a. Real  property tax abatement. 1. Within a city having a popu-
    33  lation of one million or more, eligible  buildings  containing  eligible
    34  premises  shall  receive  an abatement of real property taxes during the
    35  benefit period. The abatement shall be equal to the product obtained by:
    36    (a) multiplying the tenant's percentage share by the number of  square
    37  feet  in  the eligible building, as listed on the records of the depart-
    38  ment of finance; and
    39    (b) multiplying the product obtained in paragraph (a) by the abatement
    40  base.
    41    2. If, as a result of application to the tax  commission  or  a  court
    42  order  or  action  by  the  department of finance, the billable assessed
    43  value is reduced, the department of finance shall recalculate the abate-
    44  ment utilizing such reduced billable assessed value. The amount equal to
    45  the difference between the abatement originally granted and  the  abate-
    46  ment  as  so  recalculated  shall  be deducted from any refund otherwise
    47  payable or remission otherwise due as a  result  of  such  reduction  in
    48  billable assessed value, and any balance of such amount remaining unpaid
    49  after  making  any  such  deduction  shall  be paid to the department of
    50  finance within thirty days from the date of mailing by the department of
    51  finance of a notice of the amount payable.  Such  amount  payable  shall
    52  constitute  a  tax  lien on the eligible building as of the date of such
    53  notice and, if not paid  within  such  thirty-day  period,  penalty  and
    54  interest  at  the  rate  applicable to delinquent taxes on such eligible
    55  building shall be charged and collected on such amount from the date  of
    56  such notice to the date of payment.

        A. 9861                             5
 
     1    3.  In  no event shall the abatement for the eligible premises granted
     2  pursuant to this title exceed the tax liability allocable to the  eligi-
     3  ble premises.
     4    4.  Notwithstanding  the provisions of any lease for occupancy of non-
     5  eligible premises in an eligible building or for occupancy  of  eligible
     6  premises  for which no certificate of abatement has been issued pursuant
     7  to this title, a lessee of non-eligible premises or of eligible premises
     8  for which no certificate of abatement has been issued pursuant  to  this
     9  title  shall  not  be  entitled  to  receive  directly  or  indirectly a
    10  reduction in either the real property taxes or any rent (including addi-
    11  tional rent) payable pursuant to such lease where such  reduction  would
    12  result from an abatement of real property taxes granted pursuant to this
    13  title.  A  landlord  of an eligible building shall not allocate, credit,
    14  assign or disburse any portion of an abatement granted pursuant to  this
    15  title  to  a lessee of non-eligible premises or of eligible premises for
    16  which no certificate of abatement  has  been  issued  pursuant  to  this
    17  title.  A  landlord  shall  not  be required to reduce the real property
    18  taxes or any rent  (including  additional  rent)  payable  by  expansion
    19  tenants,  new  tenants and renewal tenants by an amount that exceeds the
    20  full amount of the abatement granted pursuant to this title, but a land-
    21  lord shall be required to reduce the real property  taxes  or  any  rent
    22  (including  additional  rent)  payable by expansion tenants, new tenants
    23  and renewal tenants by an amount that, in the aggregate, equals the full
    24  amount of the abatement granted pursuant to this title.  Such  reduction
    25  shall  be  allocated  in  accordance  with the abatement granted for the
    26  eligible premises occupied by each such tenant.
    27    § 497-b. Eligibility requirements. 1. No abatement  shall  be  granted
    28  pursuant  to  this  title  unless  the  landlord enters into a lease for
    29  eligible premises  with  a  tenant  or  renewal  tenant  and  the  lease
    30  commencement date is within the eligibility period.
    31    2.  No  abatement shall be granted pursuant to this title if an appli-
    32  cant shall fail to meet any of the requirements  of  this  title  within
    33  sixty days of the rent commencement date.
    34    3. For purposes of this title, the expiration date of a lease shall be
    35  determined  by  the  expiration  date  set  forth in such lease, without
    36  giving effect to any rights of the landlord or the tenant  to  terminate
    37  such lease prior to the expiration date set forth in such lease.
    38    4.  The  lease  for  the eligible premises shall contain the following
    39  provisions:
    40    (a) a statement of the tenant's percentage share;
    41    (b) a statement informing the tenant in  at  least  twelve-point  type
    42  that:
    43    (1)  an  application  for abatement of real property taxes pursuant to
    44  this title will be made for the premises;
    45    (2) the rent, including amounts  payable  by  the  tenant  or  renewal
    46  tenant for real property taxes, will accurately reflect any abatement of
    47  real property taxes granted pursuant to this title for the premises; and
    48    (3) all abatements granted with respect to a building pursuant to this
    49  title  will  be revoked if, during the benefit period, real estate taxes
    50  or water or sewer charges or other lienable charges are unpaid for  more
    51  than  one  year,  unless such delinquent amounts are paid as provided in
    52  subdivision four of section four hundred ninety-seven-e of this title.
    53    5. No abatement shall be granted pursuant to this title if:
    54    (a) the lease for the  eligible  premises  provides  that  during  the
    55  initial  lease  term  required by subdivision one of this section either
    56  the landlord or the tenant or renewal tenant may  terminate  such  lease

        A. 9861                             6

     1  prior  to  the  expiration  date  of  such  required initial lease term;
     2  provided that such lease may provide that either  the  landlord  or  the
     3  tenant may terminate such lease if:
     4    (1)  the  other party is in default of any of such party's obligations
     5  under the lease,
     6    (2) the eligible premises are damaged or destroyed by  fire  or  other
     7  casualty,
     8    (3)  the  eligible  premises  are rendered unusable for any reason not
     9  attributable to any act or failure to act of either tenant or  landlord,
    10  or
    11    (4) the eligible premises are acquired by eminent domain; and
    12    (b)  there  are  real  property taxes, water or sewer charges or other
    13  lienable charges currently due and owing on the eligible building  which
    14  is  the  subject of an application for abatement pursuant to this title,
    15  unless such real property taxes or charges are currently being  paid  in
    16  timely  installments pursuant to a written agreement with the department
    17  of finance or other appropriate agency.
    18    6. No abatement shall be granted pursuant to  this  title  unless  the
    19  applicant  shall  file,  together  with  the  application,  an affidavit
    20  setting forth the following information:
    21    (a) a statement that within the seven years immediately preceding  the
    22  date  of  application for a certificate of abatement, neither the appli-
    23  cant nor any person owning a substantial interest in the eligible build-
    24  ing as defined in paragraph (c) of this subdivision,  nor  any  officer,
    25  director  or general partner of the applicant or such person was finally
    26  adjudicated by a  court  of  competent  jurisdiction  to  have  violated
    27  section  two hundred thirty-five of the real property law or any section
    28  of article one hundred fifty of the penal law or any similar  arson  law
    29  of another jurisdiction with respect to any building, or was an officer,
    30  director  or  general  partner  of  a person at the time such person was
    31  finally adjudicated to have violated any such law; and
    32    (b) a statement setting forth any pending charges  alleging  violation
    33  of  section  two  hundred  thirty-five  of  the real property law or any
    34  section of article one hundred fifty of the penal  law  or  any  similar
    35  arson  law  of  another jurisdiction with respect to any building by the
    36  applicant or any person owning a substantial interest  in  the  eligible
    37  building  as  defined in paragraph (c) of this subdivision, or any offi-
    38  cer, director or general partner of the applicant or such person, or any
    39  person for whom the applicant or person owning a substantial interest in
    40  the eligible building is an officer, director or general partner.
    41    (c) for purposes of this subdivision and subdivision seven of  section
    42  four  hundred ninety-seven-e of this title, "substantial interest" shall
    43  mean ownership and control of an interest of ten per centum or  more  in
    44  the eligible building or in any person owning the eligible building.
    45    § 497-c. Application for certificate of abatement. 1.  Application for
    46  a  certificate  of  abatement  may  be made on or after April first, two
    47  thousand nineteen and until sixty days after the end of the  eligibility
    48  period,  and shall be filed with the department of finance.  No applica-
    49  tion may be filed prior to the date on which the lease for the  eligible
    50  premises is executed by the landlord and tenant.
    51    2.  No  abatement  pursuant  to this title shall be granted unless the
    52  applicant files an application for a  certificate  of  abatement  within
    53  sixty  days  following  the lease commencement date or within sixty days
    54  following the effective date of this title, whichever is later.
    55    3. In addition to any other information required by the department  of
    56  finance, the application for a certificate of abatement shall include an

        A. 9861                             7
 
     1  abstract  of  the lease for the eligible premises for which an abatement
     2  is being sought which abstract is signed by the landlord and the tenant.
     3  Such abstract shall include the tenant's  percentage  share,  the  lease
     4  commencement  date,  the rent commencement date, the expiration date for
     5  such lease and a description of the  improvements  to  be  made  to  the
     6  eligible premises and the common areas of the eligible building, includ-
     7  ing the estimated value of such improvements.
     8    4.  The  department  of finance shall issue a certificate of abatement
     9  upon determining that the applicant has submitted  proof  acceptable  to
    10  the  department  of  finance that the applicant has met the requirements
    11  set forth in this title.
    12    5. The burden of proof shall be on the applicant to show by clear  and
    13  convincing  evidence that the requirements for granting a certificate of
    14  abatement have been satisfied. The department of finance shall have  the
    15  authority to require that statements in connection with such application
    16  be made under oath.
    17    6. The department of finance may provide by rule for reasonable admin-
    18  istrative  charges or fees necessary to defray expenses in administering
    19  the abatement program provided by this title.
    20    § 497-d. Enforcement and administration.  The  department  of  finance
    21  shall  have, in addition to any other functions, powers and duties which
    22  have been or may be conferred on it by  law,  the  following  functions,
    23  powers and duties:
    24    1.  To  receive  and review applications for certificates of abatement
    25  under this title and issue such certificates where  authorized  pursuant
    26  to this title.
    27    2. To receive evidence of premises and building eligibility.
    28    3.  To  receive all certificates of continuing eligibility required by
    29  section four hundred ninety-seven-e of this title.
    30    4. To collect all real property taxes, with interest and penalty,  due
    31  and  owing  as  a  result of reduction, termination or revocation of any
    32  abatement granted pursuant to this title.
    33    5. To make and promulgate rules to carry  out  the  purposes  of  this
    34  title.
    35    § 497-e. Reporting requirements; revocation of abatements. 1.  For the
    36  duration  of  the  applicant's  benefit period, the applicant shall file
    37  annually with the department of finance, on or  before  April  first  of
    38  each  year,  a certificate of continuing eligibility confirming that the
    39  eligible premises are occupied by the tenant who originally executed the
    40  lease and that the eligible premises are being  used  for  the  purposes
    41  described in the application. Such certificate of continuing eligibility
    42  shall  be  on  a  form prescribed by the department of finance and shall
    43  contain such additional information as the department of  finance  shall
    44  require. The department of finance shall have the authority to determine
    45  the  abatements granted pursuant to this title upon failure of an appli-
    46  cant to file such certificate by such date. The burden of proof shall be
    47  on the applicant to establish continuing eligibility  for  benefits  and
    48  the  department  of  finance  shall  have  the authority to require that
    49  statements made in such certificate shall be made under oath.
    50    2. The department of finance shall revoke any abatement granted pursu-
    51  ant to this title when the tenant who originally executed the  lease  is
    52  no  longer  occupying  the  eligible  premises. Such revocation shall be
    53  retroactive to the date that such tenant vacated the  eligible  premises
    54  and  the  department  of finance shall require the landlord to pay, with
    55  interest, any taxes which become payable as a result of such revocation.
    56  The landlord shall notify the department of finance within  thirty  days

        A. 9861                             8
 
     1  following  the  date  on which such tenant vacated the eligible premises
     2  and, for failure to comply with this notification requirement, shall  be
     3  liable  for penalty calculated for the same period as interest is calcu-
     4  lated pursuant to the preceding sentence.
     5    3.  If  any  portion  of  the premises for which an abatement has been
     6  granted pursuant to this title ceases to be occupied or used as eligible
     7  premises or is occupied by a subtenant, the department of finance  shall
     8  reduce  the  abatement granted pursuant to this title by an amount equal
     9  to the percentage of such eligible premises which has ceased to be occu-
    10  pied or used as eligible premises or is occupied by  a  subtenant.  Such
    11  reduction  shall be retroactive to the date that such premises ceased to
    12  be occupied or used as eligible premises or was occupied by a subtenant,
    13  and the department of finance shall require the landlord  to  pay,  with
    14  interest,  any taxes which become payable as a result of such reduction.
    15  The landlord shall notify the department of finance within  thirty  days
    16  following  the  date on which the premises ceased to be occupied or used
    17  as eligible premises or was occupied by a subtenant and, for failure  to
    18  comply  with  this notification requirement, shall be liable for penalty
    19  calculated for the same period as interest  is  calculated  pursuant  to
    20  this subdivision.
    21    4.  If,  during  the benefit period, any real property tax or water or
    22  sewer charge or other lienable charge due and payable with respect to an
    23  eligible building shall remain unpaid for at least  one  year  following
    24  the  date  upon  which  such  tax  or charge became due and payable, all
    25  abatements granted pursuant to this title with respect to such  building
    26  shall be revoked, unless within thirty days from the mailing of a notice
    27  of  revocation  by  the  department  of  finance  satisfactory  proof is
    28  presented to the department of finance that any and all delinquent taxes
    29  and charges owing with respect to such building as of the date  of  such
    30  notice  have  been  paid  in  full or are currently being paid in timely
    31  installments pursuant to a written  agreement  with  the  department  of
    32  finance  or  other  appropriate  agency. Any revocation pursuant to this
    33  subdivision shall be effective with respect to real property taxes which
    34  become due and payable following the date of such revocation.
    35    5. The department of finance may deny, reduce, suspend,  terminate  or
    36  revoke any abatement granted pursuant to this title whenever:
    37    (a)  the  landlord  or the tenant receiving abatement pursuant to this
    38  title fails to comply with the requirements of this title or  the  rules
    39  promulgated hereunder; or
    40    (b) an application, certificate, report or other document submitted by
    41  the  applicant contains a false or misleading statement as to a material
    42  fact or omits to state any material fact necessary in order to make  the
    43  statement therein not false or misleading, and may declare any applicant
    44  who  makes such false or misleading statement or omission to be ineligi-
    45  ble for future abatement pursuant to this title for the  same  or  other
    46  property.  In  addition,  the  department  of  finance shall require the
    47  applicant to pay, with penalty  and  interest,  any  abatement  received
    48  pursuant to this title as a result of such false or misleading statement
    49  or omission of a material fact.
    50    6.  Notwithstanding  any other provision of this title, the department
    51  of finance shall deny, terminate or revoke any abatement applied for  or
    52  granted  pursuant  to  this  title  upon  a determination that the lease
    53  between the landlord and the tenant was entered into primarily  for  the
    54  purpose  of  receiving  an  abatement  under  this title. In making such
    55  determination, the department  of  finance  may  consider,  among  other
    56  factors,  the  relationship, if any, between the landlord and the tenant

        A. 9861                             9

     1  and whether the business terms of such lease  are  consistent  with  the
     2  business terms generally found in leases for comparable space.
     3    7.  (a) If any person described in the statement required by paragraph
     4  (b) of subdivision six of section four hundred  ninety-seven-b  of  this
     5  title  is finally adjudicated by a court of competent jurisdiction to be
     6  guilty of any charge listed in such statement, the department of finance
     7  shall revoke the abatement granted pursuant  to  this  title  and  shall
     8  require  the  payment, with interest, of any abatement received pursuant
     9  to this title.
    10    (b) The applicant shall, on the certificate of continuing eligibility,
    11  state whether any charges alleging violation by  the  applicant  or  any
    12  person  owning  a  substantial interest in the eligible building, or any
    13  officer, director or general partner of the applicant or person owning a
    14  substantial interest in the eligible building, or any  person  for  whom
    15  the  applicant  or  person owning a substantial interest in the eligible
    16  building is an officer, director or  general  partner,  of  section  two
    17  hundred  thirty-five  of the real property law or any section of article
    18  one hundred fifty of the penal law or any similar arson law  of  another
    19  jurisdiction,  are pending. For purposes of this paragraph, "substantial
    20  interest" shall have the same meaning as set forth in paragraph  (c)  of
    21  subdivision six of section four hundred ninety-seven-b of this title.
    22    § 497-f. Tax  lien;  interest  and  penalty. All taxes, with interest,
    23  required to be paid retroactively pursuant to this title  shall  consti-
    24  tute  a tax lien as of the date it is determined such taxes and interest
    25  are owed. All interest shall be calculated from the date the taxes would
    26  have been due but for the abatement granted pursuant to  this  title  at
    27  the  applicable rate or rates of interest imposed by such city generally
    28  for non-payment of real property tax with respect to the eligible build-
    29  ing for the period in question. When a provision of this title  requires
    30  the  payment  of  a  penalty in addition to interest, the amount of such
    31  penalty shall be equal to the amount of interest that  would  have  been
    32  payable  pursuant to such provision had such interest been calculated at
    33  the rate of three percent per annum.
    34    § 6. Section 100 of the economic development law is amended by  adding
    35  a new subdivision 48 to read as follows:
    36    48.  to,  in  consultation with the New York city economic development
    37  corporation, identify state owned property in  Manhattan  which  may  be
    38  used  as  temporary  showrooms  for businesses affected by the temporary
    39  closure of the L subway line for  repairs,  who  have  clients  who  are
    40  unable to travel to North Brooklyn because of such temporary closure.
    41    § 7. This act shall take effect immediately.
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