Extending the old 421-a completion date from June 15, 2026 to June 15, 2031

Section 1. Subparagraph (xxviii) of paragraph (a) of subdivision 16 of section 421-a of the real property tax law, as amended by section 3 of part TTT of chapter 59 of the laws of 2017, is amended to read as follows:

 (xxviii) "Eligible multiple dwelling" shall mean a multiple dwelling or homeownership project containing six or more dwelling units created through new construction or eligible conversion for which the commencement date is after December thirty-first, two thousand fifteen and on or before June fifteenth, two thousand twenty-two, and for which the completion date is on or before June fifteenth, two thousand  [twenty-six] thirty-one.

This act shall take effect immediately.

A replacement of 421-a: 485-X

1. The real property tax law is amended by adding a new section 485-x to read as follows: 485-x. Affordable neighborhoods for New Yorkers tax incentive. Definitions. For purposes of this section:

(a) "Affordable neighborhoods for New Yorkers tax incentive benefits (hereinafter referred to as "ANNY Program benefits")" shall mean the exemption from real property taxation pursuant to this section.

(b) "Affordable homeownership program" shall only apply to a homeownership project, of which a prescribed percent of the units shall, upon initial sale immediately subsequent to the completion date and upon each subsequent sale for forty years immediately subsequent to the completion date, be affordable to individuals or families whose household income does not exceed a prescribed percent of the area median income, adjusted for family size, and where each owner of any such unit shall agree, in writing, to maintain such unit as their primary residence for no less than five years from the acquisition of such unit, and such project is subject to a regulatory agreement with a city or state agency. 

The prescribed percentage of the units and the prescribed percentage of the area median income shall be set forth in regulations promulgated by the agency in accordance with the goals and factors set forth in subdivision eight of this section.

(c) "Affordability percentage" shall mean a fraction, the numerator of which is the number of affordable housing units in an eligible site and the denominator of which is the total number of dwelling units in such eligible site.

(d) "Affordable housing unit" shall mean a dwelling unit that: (i) is situated within the eligible site for which ANNY Program benefits are granted; and (ii) upon initial rental and upon each subsequent rental following a vacancy during the applicable restriction period, is affordable to and restricted to occupancy by a household whose income does not exceed a prescribed percentage of the area median income, adjusted for family size, at the time that such household initially occupies such dwelling unit. The prescribed area median income percentages shall be set forth in regulations promulgated by the agency in accordance with the goals and factors set forth in subdivision eight of this section.

(e) "Agency" shall mean the department of housing preservation and development.

(f) "Application" shall mean an application for ANNY Program benefits.

(g) "Average hourly wage" shall mean the amount equal to the aggregate amount of all wages and all employee benefits paid to, or on behalf of, construction workers for construction work divided by the aggregate number of hours of construction work.

(h) "Brooklyn prime development area" shall mean any tax lots now existing or hereafter created which are located entirely within the borough of Brooklyn and as set forth pursuant to a memorandum of understanding entered into pursuant to subdivision twenty-two of this section.

(i) "Building service employee" shall mean any person who is regularly employed at, and performs work in connection with the care or maintenance of, an eligible site, including, but not limited to, a watchman, guard, doorman, building cleaner, porter, handyman, janitor, gardener, groundskeeper, elevator operator and starter, and window cleaner, but not including persons regularly scheduled to work fewer than eight hours per week at the eligible site.

(j) "Commencement date" shall mean, with respect to any eligible multiple dwelling, the date upon which excavation and construction of initial footings and foundations lawfully begins in good faith or, for an eligible conversion, the date upon which the actual construction of the conversion, alteration or improvement of the pre-existing building or structure lawfully begins in good faith.

(k) "Completion date" shall mean, with respect to any eligible multiple dwelling, the date upon which the local department of buildings issues the first temporary or permanent certificate of occupancy covering all residential areas of an eligible multiple dwelling.

(l) "Construction period" shall mean, with respect to any eligible multiple dwelling, a period: (i) beginning on the later of the commencement date of such eligible multiple dwelling or three years before the completion date of such eligible multiple dwelling; and (ii) ending on the day preceding the completion date of such eligible multiple dwelling.

(m) "Construction work" shall mean the provision of labor performed on an eligible site between the commencement date and the completion date, whereby materials and constituent parts are combined to initially form, make or build an eligible multiple dwelling, including without limitation, painting, or providing of material, articles, supplies or equipment in the eligible multiple dwelling, but excluding security personnel and work related to the fit-out of commercial spaces.

(n) "Construction workers" shall mean all persons performing construction work who (i) are paid on an hourly basis and (ii) are not in a management or executive role or position.

(o) "Contractor certified payroll report" shall mean an original

payroll report submitted by a contractor or sub-contractor to the independent monitor setting forth to the best of the contractor's or subcontractor's knowledge, the total number of hours of construction work performed by construction workers, and the amount of wages and employee benefits paid to construction workers for construction work.

(p) "Eligible conversion" shall mean the conversion, alteration or improvement of a pre-existing building or structure resulting in a multiple dwelling in which no more than forty-nine percent of the floor area consists of such pre-existing building or structure.

(q) "Eligible multiple dwelling" shall mean a multiple dwelling or homeownership project containing six or more dwelling units created through new construction or eligible conversion for which the commencement date is within five years subsequent to the date on which the memorandum of understanding is entered into pursuant to subdivision twenty-two of this section, and for which the completion date is within nine years subsequent to the date on which a memorandum of understanding is entered into pursuant to subdivision twenty-two of this section.

(r) "Eligible site" shall mean either: (i) a tax lot containing an eligible multiple dwelling; or (ii) a zoning lot containing two or more eligible multiple dwellings that are part of a single application.

(s) "Employee benefits" shall mean all supplemental compensation paid by the employer, on behalf of construction workers, other than wages, including, without limitation, any premiums or contributions made into plans or funds that provide health, welfare, non-occupational disability coverage, retirement, vacation benefits, holiday pay, life insurance and apprenticeship training. The value of any employee benefits received shall be determined based on the prorated hourly cost to the employer of the employee benefits received by construction workers.

(t) "Fiscal officer" shall mean the comptroller or other analogous officer in a city having a population of one million or more.

(u) "Floor area" shall mean the horizontal areas of the several floors, or any portion thereof, of a dwelling or dwellings, and accessory structures on a lot measured from the exterior faces of exterior walls, or from the center line of party walls.

(v) "Four percent tax credits" shall mean federal low-income housing tax credits computed in accordance with clause (ii) of subparagraph (B) of paragraph (1) of subsection (b) of section forty-two of the internal revenue code of nineteen hundred eighty-six, as amended.

(w) "Forty-year benefit" shall mean: (i) for the construction period, a one hundred percent exemption from real property taxation, other than assessments for local improvements; and (ii) for the first forty years of the restriction period, a one hundred percent exemption from real property taxation, other than assessments for local improvements.

(x) "Homeownership project" shall mean a multiple dwelling operated as condominium or cooperative housing.

(y) "Homeownership project restriction period" shall mean a period commencing on the completion date and expiring on the fortieth anniversary of the completion date, notwithstanding any earlier termination or revocation of ANNY Program benefits.

(z) "Independent monitor" shall mean an accountant licensed and in good standing pursuant to article one hundred forty-nine of the education law.

(aa) "Job action" shall mean any delay, interruption or interference with the construction work caused by the actions of any labor organization or concerted action of any employees at the eligible site, including without limitation, strikes, sympathy strikes, work stoppages, walkouts, slowdowns, picketing, bannering, hand billing, demonstrations, sickouts, refusals to cross a picket line, refusals to handle struck business, and use of the rat or other inflatable balloons or similar displays.

(bb) "Large rental project" shall mean an eligible site consisting of thirty or more residential dwelling units in which all dwelling units included in any application are operated as rental housing.

(cc) "Large rental project restriction period" shall mean a period commencing on the completion date and extending in perpetuity, notwithstanding any earlier termination or revocation of ANNY Program benefits.

(dd) "Manhattan prime development area" shall mean any tax lots, now existing or hereafter created, located entirely in the borough of Manhattan and as set forth pursuant to the memorandum of understanding entered into pursuant to subdivision twenty-two of this section.

(ee) "Market unit" shall mean a dwelling unit in an eligible multiple dwelling other than an affordable housing unit.

(ff) "Multiple dwelling" shall have the same meaning set forth in subdivision seven of section four of the multiple dwelling law.

(gg) "Non-residential tax lot" shall mean a tax lot that does not contain any dwelling units.

(hh) "Prime development area" shall mean the Manhattan prime development area, the Brooklyn prime development area and the Queens prime development area.

(ii) "Project-wide certified payroll report" shall mean a certified payroll report submitted by the independent monitor to the fiscal officer based on each contractor certified payroll report which sets forth the total number of hours of construction work performed by construction workers, the amount of wages and employee benefits paid to construction workers for construction work and the average hourly wage.

(jj) "Queens prime development area" shall mean any tax lots now existing or hereafter created which are located entirely within the borough of Queens and as set forth pursuant to a memorandum of under- standing entered into pursuant to subdivision twenty-two of this section.

(kk) "Rent stabilization" shall mean, collectively, the rent stabilization law of nineteen hundred sixty-nine, the rent stabilization code, and the emergency tenant protection act of nineteen seventy-four, all as in effect as of the effective date of the chapter of the laws of two thousand twenty-four that added this section or as amended thereafter, together with any successor statutes or regulations addressing substantially the same subject matter.

(ll) "Rental project" shall mean, collectively, large rental project and small rental project.

(mm) "Residential tax lot" shall mean a tax lot that contains dwelling units.

(nn) "Small rental project" shall mean an eligible site consisting of less than thirty residential dwelling units in which all dwelling units included in any application are operated as rental housing.

(oo) "Small rental project restriction period" shall mean a period commencing on the completion date and expiring on the thirty-fifth anniversary of the completion date, notwithstanding any earlier termination or revocation of ANNY Project benefits.

(pp) "Tax exempt bond proceeds" shall mean the proceeds of an exempt facility bond, as defined in paragraph seven of subsection (a) of section one hundred forty-two of the internal revenue code of nineteen hundred eighty-six, as amended, the interest upon which is exempt from taxation under section one hundred three of the internal revenue code of nineteen hundred eighty-six, as amended.

(qq) "Third-party fund administrator" shall be a person or entity that receives funds pursuant to subdivision three of this section and oversees and manages the disbursal of such funds to construction workers. The third-party fund administrator shall be a person or entity approved by the fiscal officer and recommended by one, or more, representative or representatives of the largest trade association of residential real estate developers, either for profit or not-for-profit, in New York city and one, or more, representative or representatives of the largest trade labor association representing building and construction workers, with membership in New York city. The third-party fund administrator shall be appointed for a term of three years, provided, however, that the administrator in place at the end of a three-year term shall continue to serve beyond the end of the term until a replacement administrator is appointed. The fiscal officer, after providing notice and after meeting with the third-party fund administrator, may remove such administrator for cause upon a fiscal officer determination that the administrator has been ineffective at overseeing or managing the disbursal of funds to the construction workers. The third-party fund administrator shall, at the request of the fiscal officer, submit reports to the fiscal officer.

"Thirty-five year benefit" shall mean: (i) for the construction period, a one hundred percent exemption from real property taxation, other than assessments for local improvements; (ii) for the first twenty-five years of the small rental project restriction period or the large rental project restriction period, as applicable, a one hundred percent exemption from real property taxation, other than assessments for local improvements; and (iii) for the final ten years of the small rental project restriction period or for the next ten years of the large rental project restriction period, as applicable, an exemption from real property taxation, other than assessments for local improvements, equal to the affordability percentage.

(ss) "Wages" shall mean all compensation, remuneration or payments of any kind paid to, or on behalf of, construction workers, including, without limitation, any hourly compensation paid directly to the construction worker, together with employee benefits, such as health, welfare, non-occupational disability coverage, retirement, vacation benefits, holiday pay, life insurance and apprenticeship training, and payroll taxes, including, to the extent permissible by law, all amounts paid for New York state unemployment insurance, New York state disability insurance, metropolitan commuter transportation mobility tax, federal unemployment insurance and pursuant to the federal insurance contributions act or any other payroll tax that is paid by the employer.

2. Benefit. In cities having a population of one million or more, notwithstanding the provisions of any general, special or local law to the contrary, new eligible multiple dwellings, except hotels, that comply with the provisions of this section shall be exempt from real property taxation, other than assessments for local improvements, in the amounts and for the periods specified in this section. A rental project that meets all of the requirements of this section shall receive a thirty-five year benefit and a homeownership project that meets all of the requirements of this section shall receive a forty-year benefit.

3. Rental projects. In addition to all other requirements set forth in this section, rental projects containing more than the number of rental units set forth by the memorandum of understanding entered into pursuant to subdivision twenty-two of this section that are located within the prime development area shall comply with the requirements set forth in this subdivision. For purposes of this subdivision, "contractor" shall mean any entity which by agreement with another party, including subcontractors, undertakes to perform construction work at an eligible site and "applicant" shall mean an applicant for ANNY Program benefits and any successor thereto.

(a) The minimum average hourly wage paid to construction workers on an eligible site within the Manhattan prime development area shall be no less than the amount set by the memorandum of understanding entered into pursuant to subdivision twenty-two of this section, and shall increase pursuant to a schedule set forth by such memorandum.

(b) The minimum average hourly wage paid to construction workers on an eligible site within the Brooklyn prime development area or the Queens prime development area shall be no less than the amount set by the memorandum of understanding entered into pursuant to subdivision twenty-two of this section, and shall increase pursuant to a schedule set forth by such memorandum.

(c) The requirements of paragraphs (a) and (b) of this subdivision shall not be applicable to:

(i) an eligible multiple dwelling in which at least fifty percent of the dwelling units upon initial rental and upon each subsequent rental following a vacancy during the large rental project restriction period, are affordable to and restricted to occupancy by individuals or families whose household income does not exceed ninety percent of the area median income, adjusted for family size, at the time that such household initially occupies such dwelling unit; or

(ii) any eligible dwelling that meets exemption criteria set forth in a memorandum of understanding entered into pursuant to subdivision twenty-two of this section.

(d) The applicant shall contract with an independent monitor. Such independent monitor shall submit to the fiscal officer within one year of the completion date, a project-wide certified payroll report. In the event such project-wide certified payroll report is not submitted to the fiscal officer within the requisite time, the applicant shall be subject to a fine of one thousand dollars per week, or any portion thereof; provided that the maximum fine shall be seventy-five thousand dollars.

In the event that the wage paid is less than the average hourly wage set pursuant to paragraph (a) or (b) of this subdivision as applicable, the project-wide certified payroll report shall also set forth the amount of such deficiency.

(e) The contractor certified payroll report shall be submitted by each contractor and sub-contractor no later than ninety days after the completion of construction work by such contractor or sub-contractor. In the event that a contractor or sub-contractor fails or refuses to submit the contractor certified payroll report within the time prescribed in this paragraph, the independent monitor shall notify the fiscal officer and the fiscal officer shall be authorized to fine such contractor or sub-contractor in an amount set forth by the memorandum of understanding entered into pursuant to subdivision twenty-two of this section, provided that the maximum fine shall not exceed an amount set forth in such memorandum.

(f) In the event that the project-wide certified payroll report shows that the wage paid as required by paragraph (a) or (b) of this subdivision, as applicable, was not paid, if the wage paid is within fifteen percent of the average hourly wage required pursuant to paragraph (a) or (b) of this subdivision, as applicable, then no later than one hundred twenty days from the date of submission of such project-wide certified payroll report, the applicant shall pay to the third-party fund administrator an amount equal to the amount of the deficiency set forth in the project-wide certified payroll report. The third-party fund administrator shall distribute such payment to the construction workers who performed construction work on such eligible site. Prior to making such repayment, the third-party fund administrator shall submit to the fiscal officer a plan subject to the fiscal officer's approval setting forth the manner in which the third-party fund administrator will reach the required average hourly wage within one hundred fifty days of receiving the payment from the applicant and how any remaining funds will be disbursed in the event that the third-party fund administrator cannot distribute the funds to the construction workers within one year of receiving fiscal officer approval. In the event that the applicant fails to make such payment within the time period prescribed in this paragraph, the applicant shall be subject to a fine not to exceed the amount set by the memorandum of understanding entered into pursuant to subdivision twenty-two of this section, provided that the maximum fine shall not exceed the amount set by the memorandum of understanding entered into pursuant to subdivision twenty-two of this section. If the wage paid is more than fifteen percent below the construction wage required pursuant to paragraph (a) or (b) of this subdivision, as applicable, then no later than one hundred twenty days from the date of submission of such project-wide certified payroll report, the applicant shall pay to the third-party fund administrator an amount equal to the amount of the deficiency set forth in the project-wide payroll report. The third-party fund  administrator shall distribute such payment to the construction workers who performed construction work on such eligible site. Prior to making such repayment, the third-party fund administrator shall submit to the fiscal officer a plan subject to the fiscal officer's approval setting forth the manner in which the third-party fund administrator will reach the required average hourly wage within one hundred fifty days of receiving the payment from the applicant and how any remaining funds will be disbursed in the event that the third-party fund administrator cannot distribute the funds to the construction workers within one year of receiving fiscal officer approval. In addition, the fiscal officer shall impose a penalty on the applicant in an amount equal to twenty-five percent of the amount of the deficiency, provided, however, that the fiscal officer shall not impose such penalty where the eligible multiple dwelling has been the subject of a job action which results in a work delay. In the event that the applicant fails to make such payment within the time period prescribed in this paragraph, the applicant shall be subject to a fine not to exceed the amount set by the memorandum of understanding entered into pursuant to subdivision twen-ty-two of this section, provided that the maximum fine shall not exceed the amount set by the memorandum of understanding entered into pursuant subdivision twenty-two of this section. Notwithstanding any provision of this subdivision, the applicant shall not be liable in any respect whatsoever for any payments, fines or penalties related to or resulting from contractor fraud, mistake, or negligence or for fraudulent or inaccurate contractor certified payroll reports or for fraudulent or inaccurate project-wide certified payroll reports, provided, however, that payment to the third-party fund administrator in the amount set forth in the project-wide certified payroll report as described in this paragraph shall still be made by the contractor or sub-contractor in the event of underpayment resulting from or caused by the contractor or sub-contractor, and that the applicant will be liable for underpayment to the third-party fund administrator unless the fiscal officer determines, in its sole discretion, that the underpayment was the result of, or caused by, contractor fraud, mistake or negligence and/or for fraudulent or inaccurate contractor certified payroll reports and/or project-wide certified payroll reports. The applicant shall otherwise not be liable in any way whatsoever once the payment to the third-party fund administrator has been made in the amount set forth in the project-wide certified payroll report. Other than the underpayment, which must be paid to the third-party fund administrator, all fines and penalties set forth in this subdivision imposed by the fiscal officer shall be paid to the agency and used by the agency to provide affordable housing.

(g) Nothing in this subdivision shall be construed to confer a private right of action to enforce the provisions of this subdivision, provided, however, that this sentence shall not be construed as a waiver of any existing rights of construction workers or their representatives related to wage and benefit collection, wage theft or other labor protections or rights and provided, further, that nothing in this subdivision relieves any obligations pursuant to a collective bargaining agreement.

(h) The fiscal officer shall have the sole authority to determine and enforce any liability for underpayment owing to the third-party fund administrator from the applicant and/or the contractor, as a result of contractor fraud, mistake or negligence and/or for fraudulent or inaccurate contractor certified payroll reports and/or project-wide certified payroll reports, as set forth in paragraph (e) of this subdivision. The fiscal officer shall expeditiously conduct an investigation and hearing at the New York city office of administrative trials and hearings, shall determine the issues raised thereon and shall make and file an order in his or her office stating such determination and forthwith serve a copy of such order, either personally or by mail, together with notice of filing, upon the parties to such proceedings. The fiscal officer in such an investigation shall be deemed to be acting in a judicial capacity and shall have the right to issue subpoenas, administer oaths and examine witnesses. The enforcement of a subpoena issued under this paragraph shall be regulated by the civil practice law and rules. The filing of such order shall have the full force and effect of a judgment duly docketed in the office of the county clerk. The order may be enforced by and in the name of the fiscal officer in the same manner, and with like effect, as that prescribed by the civil practice law and rules for the enforcement of a money judgment.

4. In addition to all other requirements set forth in this section, an eligible site must, over the course of the design and construction of such eligible site, make all reasonable efforts to spend on contracts with minority and women owned business enterprises at least twenty-five percent of the total applicable costs, as such enterprises and costs are defined in rules of the agency. Such rules shall set forth required measures with respect to contracts for design and construction that are comparable, to the extent practicable, to the measures used by agencies of the city of New York to enhance minority and women owned business enterprise participation in agency contracts pursuant to applicable law, including section 6-129 of the administrative code of the city of New York.

5. Tax payments. In addition to any other amounts payable pursuant to this section, the owner of any eligible site receiving ANNY Program benefits shall pay, in each tax year in which such ANNY Program benefits are in effect, real property taxes and assessments as follows:

(a) with respect to each eligible multiple dwelling constructed on such eligible site, real property taxes on the assessed valuation of such land and any improvements thereon in effect during the tax year prior to the commencement date of such eligible multiple dwelling, without regard to any exemption from or abatement of real property taxation in effect during such tax year, which real property taxes shall be calculated using the tax rate in effect at the time such taxes are due; and

(b) all assessments for local improvements.

6. Limitation on benefits for non-residential space. If the aggregate floor area of commercial, community facility and accessory use space in an eligible site, other than parking which is located not more than twenty-three feet above the curb level, exceeds twelve percent of the aggregate floor area in such eligible site, any ANNY Program benefits shall be reduced by a percentage equal to such excess. If an eligible site contains multiple tax lots, the tax arising out of such reduction in ANNY Program benefits shall first be apportioned pro rata among any non-residential tax lots. After any such non-residential tax lots are fully taxable, the remainder of the tax arising out of such reduction in ANNY Program benefits, if any, shall be apportioned pro rata among the remaining residential tax lots.

7. Calculation of benefit. Based on the certification of the agency certifying the applicant's eligibility for ANNY Program benefits, the assessors shall certify to the collecting officer the amount of taxes to be exempted.

8. Affordability requirements. A rental project shall maintain an affordability percentage at or above the minimum affordability percentage set forth in regulations promulgated by the agency. The affordable dwelling units within a rental project shall comply with the area median income affordability level or levels set forth pursuant to regulations promulgated by the agency. In setting the affordability percentage and the area median income levels, the agency shall consider the following goals and factors: the production of financially viable, high quality and safe housing, particularly in well-resourced areas with high land acquisition costs, that meet the needs of low and moderate income households and individuals.

(a) All rental dwelling units in an eligible multiple dwelling shall share the same common entrances and common areas as market rate units in such eligible multiple dwelling and shall not be isolated to a specific floor or area of an eligible multiple dwelling. Common entrances shall mean any area regularly used by any resident of a rental dwelling unit in the eligible multiple dwelling for ingress and egress from such eligible multiple dwelling.

(b) Unless preempted by the requirements of a federal, state or local housing program, either (i) the affordable housing units in an eligible multiple dwelling shall have a unit mix proportional to the market units, or (ii) at least fifty percent of the affordable housing units in an eligible multiple dwelling shall have two or more bedrooms and no more than twenty-five percent of the affordable housing units shall have less than one bedroom.

(c) Notwithstanding any provision of rent stabilization to the contrary, all affordable housing units shall remain fully subject to rent stabilization both during and subsequent to the small building restriction period or the large building restriction period, as applicable.

(d) All rent stabilization registrations required to be filed shall contain a designation that specifically identifies affordable housing units created pursuant to this section as "ANNY Program affordable housing units" and shall contain an explanation of the requirements that apply to all such affordable housing units.

(e) Failure to comply with the provisions of this subdivision that require the creation, maintenance, rent stabilization compliance and occupancy of affordable housing units or for purposes of a homeownership project the failure to comply with the affordable homeownership project requirements shall result in revocation of any ANNY Program benefits for the period of such non-compliance.

(f) Nothing in this section shall (i) prohibit the occupancy of an affordable housing unit by individuals or families whose income at anytime is less than the maximum percentage of the area median income, adjusted for family size, specified for such affordable housing unit pursuant to this section, or (ii) prohibit the owner of an eligible site from requiring, upon initial rental or upon any rental following a vacancy, the occupancy of any affordable housing unit by such lower income individuals or families.

(g) Following issuance of a temporary certificate of occupancy and upon each vacancy thereafter, an affordable housing unit shall promptly be offered for rental by individuals or families whose income does not exceed the maximum percentage of the area median income, adjusted for family size, specified for such affordable housing unit pursuant to this section and who intend to occupy such affordable housing unit as their primary residence. An affordable housing unit shall not be (i) rented to a corporation, partnership or other entity, or (ii) held off the market for a period longer than is reasonably necessary to perform repairs needed to make such affordable housing unit available for occupancy.

(h) An affordable housing unit shall not be rented on a temporary, transient or short-term basis. Every lease and renewal thereof for an affordable housing unit shall be for a term of one or two years, at the option of the tenant.

(i) An affordable housing rental unit shall not be converted to cooperative or condominium ownership.

(j) The agency may establish by rule such requirements as the agency deems necessary or appropriate for (i) the marketing of affordable housing units, both upon initial occupancy and upon any vacancy, (ii) monitoring compliance with the provisions of this subdivision, and (iii) the marketing and monitoring of any homeownership project that is granted an exemption pursuant to this subdivision. Such requirements may include, but need not be limited to, retaining a monitor approved by the agency and paid for by the owner.

(k) Notwithstanding any provision of this section to the contrary, a market unit shall not be subject to rent stabilization unless, in the absence of ANNY Program benefits, the unit would be subject to rent stabilization.

9. Building service employees. (a) For the purposes of this subdivision, "applicant" shall mean an applicant for ANNY Program benefits, any successor to such applicant, or any employer of building service employees for such applicant, including, but not limited to, a property management company or contractor.

(b) All building service employees employed by the applicant at the eligible site shall receive the applicable prevailing wage for the duration of the applicable benefit period, regardless of whether such benefits are revoked or terminated.

(c) The fiscal officer shall have the power to enforce the provisions of this subdivision. In enforcing such provisions, the fiscal officer shall have the power:

(i) to investigate or cause an investigation to be made to determine the prevailing wages for building service employees; in making such investigation, the fiscal officer may utilize wage and fringe benefit data from various sources, including, but not limited to, data and determinations of federal, state or other governmental agencies, provided, however, that the provision of a dwelling unit shall not be considered wages or a fringe benefit;

(ii) to institute and conduct inspections at the site of the work or elsewhere;

(iii) to examine the books, documents and records pertaining to the wages paid to, and the hours of work performed by, building service employees;

(iv) to hold hearings and, in connection therewith, to issue subpoenas, administer oaths and examine witnesses; the enforcement of a subpoena issued under this subdivision shall be regulated by the civil practice law and rules;

(v) to make a classification by craft, trade or other generally recognized occupational category of the building service employees and to determine whether such work has been performed by the building service employees in such classification;

(vi) to require the applicant to file with the fiscal officer a record of the wages actually paid by such applicant to the building service employees and of their hours of work;

(vii) to delegate any of the foregoing powers to his or her deputy or other authorized representative;

(viii) to promulgate rules as he or she shall consider necessary for the proper execution of the duties, responsibilities and powers conferred upon him or her by the provisions of this paragraph; and

(ix) to prescribe appropriate sanctions for failure to comply with the provisions of this subdivision. For each violation of paragraph (b) of this subdivision, the fiscal officer may require the payment of: (A) back wages and fringe benefits; (B) liquidated damages up to three times the amount of the back wages and fringe benefits for willful violations; and/or (C) reasonable attorney's fees. If the fiscal officer finds that the applicant has failed to comply with the provisions of this subparagraph, he or she shall present evidence of such non-compliance to the agency.

(d) Paragraph (b) of this subdivision shall not be applicable to: (i) an eligible multiple dwelling containing less than thirty dwelling units; or (ii) an eligible multiple dwelling in which all of the dwelling units are affordable housing units and not less than fifty percent of such affordable housing units, upon initial rental and upon each subsequent rental following a vacancy are affordable to and restricted to occupancy by individuals or families whose household income does not exceed ninety percent of the area median income, adjusted for family size, at the time that such household initially occupies such dwelling unit.

(e) The applicant shall submit a sworn affidavit with its application, and annually thereafter, certifying that it shall comply with the requirements of this subdivision.

(f) The agency shall annually publish a list of all eligible sites subject to the requirements of this paragraph and the affidavits required pursuant to paragraph (e) of this subdivision.

10. Replacement ratio. If the land on which an eligible site is located contained any dwelling units three years prior to the commencement date of the first eligible multiple dwelling thereon, then such eligible multiple dwelling or dwellings built thereon shall contain at least one affordable housing unit for each dwelling unit that existed on such date and was thereafter demolished, removed or reconfigured.

11. Concurrent exemptions or abatements. An eligible multiple dwelling receiving ANNY Program benefits shall not receive any exemption from or abatement of real property taxation under any other law.

12. Voluntary renunciation or termination. Notwithstanding the provisions of any general, special or local law to the contrary, an owner shall not be entitled to voluntarily renounce or terminate ANNY Program benefits unless the agency authorizes such renunciation or termination in connection with the commencement of a new tax exemption pursuant to either the private housing finance law or section four hundred twenty-c of this title.

13. Termination or revocation. The agency may terminate or revoke ANNY Program benefits for noncompliance with this section; provided, however, that the agency shall not terminate or revoke ANNY Program benefits for a failure to comply with subdivision three of this section. If an applicant has committed three violations of the requirements of paragraph b of subdivision nine of this section within a five-year period, the agency may revoke any benefits under this section. For purposes of this subdivision, a "violation" of paragraph b of subdivision nine of this section shall be deemed a finding by the fiscal officer that the applicant has failed to comply with paragraph b of subdivision nine of this section and has failed to cure the deficiency within three months of such finding. Provided, however, that after a second such violation, the applicant shall be notified that any further violation may result in the revocation of benefits under this section and that the fiscal officer shall publish on its website a list of all applicants with two violations as defined in this paragraph. If ANNY Program benefits are terminated or revoked for noncompliance with this section: (a) all of the affordable housing units shall remain subject to rent stabilization and all other requirements of this section for the applicable restriction period, and any additional period expressly provided in this section, as if the ANNY Program benefits had not been terminated or revoked; or (b) for a homeownership project, such project shall continue to comply with affordability requirements set forth in this section and all other requirements of this section for the restriction period and any additional period expressly provided in this section, as if the ANNY Program benefits had not been terminated or revoked.

14. Powers cumulative. The enforcement provisions of this section shall not be exclusive, and are in addition to any other rights, remedies, or enforcement powers set forth in any other law or available at law or in equity.

15. Multiple tax lots. If an eligible site contains multiple tax lots, an application may be submitted with respect to one or more of such tax lots. The agency shall determine eligibility for ANNY Program benefits based upon the tax lots included in such application and benefits for each multiple dwelling shall be based upon the completion date of such multiple dwelling.

16. Applications. (a) The application with respect to any eligible multiple dwelling shall be filed with the agency not later than one year after the completion date of such eligible multiple dwelling.

(b) Notwithstanding the provisions of any general, special or local law to the contrary, the agency may require by rule that applications be filed electronically.

(c) The agency may rely on certification by an architect or engineer submitted by an applicant in connection with the filing of an application. A false certification by such architect or engineer shall be deemed to be professional misconduct pursuant to section sixty-five hundred nine of the education law. Any licensee found guilty of such misconduct under the procedures prescribed in section sixty-five hundred ten of the education law shall be subject to the penalties prescribed in section sixty-five hundred eleven of the education law and shall thereafter be ineligible to submit a certification pursuant to this section.

(d) The agency shall not require that the applicant demonstrate compliance with the requirements of subdivision three of this section as a condition to approval of the application.

17. Filing fee. The agency may require a filing fee of three thousand dollars per dwelling unit in connection with any application. However, the agency may promulgate rules imposing a lesser fee for eligible sites containing eligible multiple dwellings constructed with the substantial assistance of grants, loans or subsidies provided by a federal, state or local governmental agency or instrumentality pursuant to a program for the development of affordable housing.

18. Rules. Except as provided in subdivisions three and nine of this section, the agency shall have the sole authority to enforce the provisions of this section and may promulgate rules to carry out the provisions of this section.

19. Election. Notwithstanding anything in this section to the contrary, a small rental project, large rental project or homeownership project with a commencement date on or before June fifteenth, two thousand twenty-two that has not received benefits pursuant to section four hundred twenty-one-a of this title prior to the effective date of the chapter of the laws of two thousand twenty-four that added this section may elect to comply with this section and receive ANNY Program benefits pursuant to this section.

20. Reporting. On or before June thirtieth of each year, the commissioner of the New York city department of housing preservation and development shall issue a report to the governor, the temporary president of the senate and the speaker of the assembly setting forth the number of total projects and units created by this section by year, level of affordability, and community board, the cost of the ANNY

Program, and other such factors as the commissioner of the New York city department of housing preservation and development deems appropriate.

The New York city department of housing preservation and development may request and shall receive cooperation and assistance from all departments, divisions, boards, bureaus, commissions, public benefit corporations or agencies of the state of New York, the city of New York or any other political subdivisions thereof, or any entity receiving benefits pursuant to this section.

21. Penalties for violations of large rental project affordability requirements. (a) On and after the expiration date of the thirty-five year benefit for a large rental project, the agency may impose, after notice and an opportunity to be heard, a fine for any violation of the affordability requirements established pursuant to subdivision eight of this section by such large rental project. The agency shall establish a schedule and method of calculation of such fines pursuant to subdivision seventeen of this section.

(b) A fine under this subdivision may be imposed against the owner of the eligible site containing such large rental project at the time the violation occurred, even if such owner no longer owns such eligible site. A failure to pay such fine may result in a lien and such other remedies as may be available pursuant to applicable law and regulation.

22. The provisions of subdivisions one through twenty-one of this section shall take effect only upon the conditions that on or before 16 January first, two thousand twenty-five: (a) a memorandum of understanding is executed by one, or more, representatives of the largest trade association of residential real estate developers, either for profit or not-for-profit, in New York city as well as one, or more, representatives of the largest trade labor association representing building and construction workers, with membership in New York city, and (b) notice of such full execution is delivered to the legislative bill drafting commission. Such memorandum of understanding shall include provisions regarding wages or wage supplements for construction workers on buildings over fifteen units where such buildings enjoy the benefits of this section; provided, however, that such memorandum shall also address issues including those related to the (i) number of units, (ii) application of a wage schedule to different size projects, (iii) wage schedules for various geographic locations in New York city, and (iv) a schedule of fines for non-compliance with the wage requirements set forth in this section. The terms and conditions of the memorandum of understanding shall apply to all projects with more than fifteen units that receive benefits under this section after the memorandum of understanding is executed. Notwithstanding the foregoing, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.

§ 2. Paragraphs f and g of subdivision 3 of section 224-a of the labor law, as added by section 1 of part FFF of chapter 58 of the laws of 2020, are amended and a new paragraph h is added to read as follows:

f. funds provided pursuant to subdivision three of section twenty-eight hundred fifty-three of the education law; [and]

g. any other public monies, credits, savings or loans, determined by the public subsidy board created in section two hundred twenty-four-c of this article as exempt from this definition[.]; and

h. benefits under section four hundred eighty-five-x of the real property tax law.

§ 3. Severability clause. If any clause, sentence, paragraph, subdivision, or section of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, or section thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein.

§ 4. This act shall take effect immediately; provided, however, that the department of housing preservation and development shall notify the legislative bill drafting commission upon the occurrence of the execution of the memorandum of understanding provided for in subdivision twenty-two of section 485-x of the real property tax law as added by section one of this act in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law.

This act shall take effect immediately provided, however, that the applicable effective date of Parts A through U of this act shall be as specifically set forth in the last section of such Parts.