421-G - Exemption from local taxation of certain multiple dwellings.

§  421-g. Exemption from local taxation of certain multiple dwellings.  1. When used in this section:    (a) "Aggregate floor area" shall mean the sum of the  gross  areas  of  the  several  floors  of a building, measured from the exterior faces of  exterior walls  or  from  the  center  lines  of  walls  separating  two  buildings.    (b)  "Applicant"  shall mean any person obligated to pay real property  taxes on the property for which an exemption from or abatement  of  real  property  taxes  under  this  section is sought or in the case of exempt  property, the record owner or lessee thereof.    (c) "Benefit period" shall mean the period of time when a recipient is  eligible to receive benefits pursuant to subdivisions two and  three  of  this section.    (d) "Certificate of eligibility" shall mean the document issued by the  department  of housing preservation and development certifying a tax lot  as eligible for benefits pursuant to this section.    (e) "Commencement of conversion" shall mean the date  of  issuance  by  the department of buildings of a building permit for the conversion of a  non-residential  building  to  an  eligible  multiple dwelling, provided  however that such permit is issued on  or  after  July  first,  nineteen  hundred ninety-five and no later than June thirtieth, two thousand six.    (f)  "Completion of conversion" shall mean the date of issuance by the  department of buildings of  a  temporary  or  permanent  certificate  of  occupancy for the portion of the building for which an application for a  certificate of eligibility is filed.    (g)  "Eligible area" shall mean any area of a city having a population  of one million or more persons in which, subject to the  applicable  law  governing zoning in such city, tax benefits pursuant to this section for  eligible  multiple  dwellings  are available, provided, however, that in  the city of New York, subject to the applicable law governing zoning  in  such  city,  the  eligible  area  in which tax benefits pursuant to this  section for eligible multiple dwellings are  available  shall  mean  the  area  in  the borough of Manhattan bounded by Murray Street on the north  starting at the intersection of West Street and Murray  Street;  running  easterly along the center line of Murray Street; connecting through City  Hall  Park with the center line of Frankfort Street and running easterly  along  the  center  lines  of  Frankfort  and  Dover  Streets   to   the  intersection  of  Dover Street and South Street; running southerly along  the center line of  South  Street  to  Peter  Minuit  Plaza;  connecting  through  Peter  Minuit  Plaza  to  the  center  line of State Street and  running northwesterly along the center  line  of  State  Street  to  the  intersection  of  State Street and Battery Place; running westerly along  the center line of Battery Place to the intersection  of  Battery  Place  and  West  Street;  and  running northerly along the center line of West  Street to the intersection of West Street and Murray Street.    (h) "Eligible  multiple  dwelling"  shall  mean  a  class  A  multiple  dwelling,  except  a hotel, created from conversion of a non-residential  building, provided, however, that  such  multiple  dwelling  is  located  within  an  eligible  area,  and  provided  further,  however,  that the  aggregate floor area of commercial, community facility and accessory use  space within such multiple dwelling  does  not  exceed  twenty-five  per  centum of the aggregate floor area of such multiple dwelling.    (i)  "Non-residential building" shall mean a structure or portion of a  structure having at least one floor, a roof and  at  least  three  walls  enclosing all or most of the space used in connection with the structure  or  portion  of  the structure, which has a certificate of occupancy for  commercial, manufacturing or other non-residential use for not less than  ninety per centum of the aggregate  floor  area  of  such  structure  orportion of such structure, or other proof of such non-residential use as  is acceptable to the department of housing preservation and development.    (j)  "Person" shall mean an individual, corporation, limited liability  company, partnership, association, agency,  trust,  estate,  foreign  or  domestic government or subdivision thereof, or other entity.    (k)  "Recipient"  shall  mean  an  applicant  to whom a certificate of  eligibility has been issued pursuant to this section, or  the  successor  in  interest  of  such  applicant,  provided that where a person who has  entered into a lease or purchase agreement with the owner or  lessee  of  exempt property has been a co-applicant, such person or the successor in  interest of such person shall be the recipient.    2.  (a)  Within  a  city  having  a  population of one million or more  persons, a tax lot containing an eligible multiple dwelling that is  the  subject  of a certificate of eligibility issued pursuant to this section  shall be exempt from real property taxation for  local  purposes,  other  than  assessments  for local improvements, on the amount of the assessed  value attributable exclusively to the physical improvement, for a period  not to exceed  twelve  consecutive  years  beginning  in  the  tax  year  immediately  following  the issuance of a certificate of eligibility, so  long as such eligible multiple dwelling is used or held out for use  for  dwelling purposes, except as otherwise provided herein. During the first  eight  years, the exemption shall equal the amount of the assessed value  attributable exclusively to the physical improvement. During  the  ninth  year, the exemption shall equal eighty per centum of such amount; during  the  tenth  year,  the  exemption  shall  equal sixty per centum of such  amount; during the eleventh year, the exemption shall  equal  forty  per  centum  of such amount; and during the twelfth year, the exemption shall  equal twenty per centum of such amount.    The following table shall illustrate the computation of the  exemption  pursuant to this paragraph:      Tax Year Following                           Percentage of     Date of Issuance of                          Applicable     Certificate of Eligibility                   Exemption             1                                      100%             2                                      100%             3                                      100%             4                                      100%             5                                      100%             6                                      100%             7                                      100%             8                                      100%             9                                       80%            10                                       60%            11                                       40%            12                                       20%     (b)  Notwithstanding  paragraph (a) of this subdivision, within a city  having a population of one million or more persons, a tax lot containing  an eligible multiple dwelling that is the subject of  a  certificate  of  eligibility  issued  pursuant  to this section and that is in a building  that, in  accordance  with  procedures  set  forth  in  local  law,  was  designated as a landmark before completion of conversion shall be exempt  from  real  property taxation for local purposes, other than assessments  for local improvements, on the amount of the assessed value attributable  exclusively to the physical improvement, for  a  period  not  to  exceed  thirteen  consecutive  years  beginning  in  the  tax  year  immediately  following the issuance of a certificate of eligibility, so long as  sucheligible  multiple  dwelling  is  used  or held out for use for dwelling  purposes, except as otherwise provided herein.  During  the  first  nine  years,  the  exemption  shall  equal  the  amount  of the assessed value  attributable  exclusively  to the physical improvement. During the tenth  year, the exemption shall equal eighty per centum of such amount; during  the eleventh year, the exemption shall equal sixty per  centum  of  such  amount;  during  the  twelfth  year, the exemption shall equal forty per  centum of such amount; and during the  thirteenth  year,  the  exemption  shall equal twenty per centum of such amount.    The  following table shall illustrate the computation of the exemption  pursuant to this paragraph:      Tax Year Following                           Percentage of     Date of Issuance of                          Applicable     Certificate of Eligibility                   Exemption             1                                      100%             2                                      100%             3                                      100%             4                                      100%             5                                      100%             6                                      100%             7                                      100%             8                                      100%             9                                      100%            10                                       80%            11                                       60%            12                                       40%            13                                       20%     2-a. Within a city having a population of one million or more persons,  a tax lot containing a non-residential building  shall  be  exempt  from  real  property  taxation  for local purposes, other than assessments for  local improvements, on the amount of  the  assessed  value  attributable  exclusively  to  the  physical improvement, for the tax year immediately  following the first taxable status date that  meets  the  following  two  conditions:  (i)  such taxable status date occurs after the commencement  of conversion and (ii) such taxable status date  is  the  first  taxable  status  date on which an increase in assessed value attributable to such  physical improvement has been assessed.  Notwithstanding  the  foregoing  sentence, no such exemption shall be granted if completion of conversion  occurs  before  the fifteenth day of April following such taxable status  date.  In  the  event  that  an  exemption  granted  pursuant  to   this  subdivision  is  not  reflected on the final assessment roll prepared on  the basis of such taxable status date, the commissioner  of  finance  is  hereby  authorized  to  refund  or credit in the fiscal year relating to  such taxable status date or in the next following fiscal year an  amount  equivalent  to  the exempt amount multiplied by the applicable tax rate.  In addition to any other basis for revocation of  an  exemption  granted  pursuant  to  this  section,  the  exemption  granted  pursuant  to this  subdivision to a non-residential  building  shall  be  revoked  if  such  building is not converted into an eligible multiple dwelling that is the  subject of a certificate of eligibility issued pursuant to this section.    3.  (a)  Within  a  city  having  a  population of one million or more  persons, in addition to the benefits set forth  in  subdivision  two  of  this section, a tax lot containing an eligible multiple dwelling that is  the  subject  of  a  certificate  of eligibility issued pursuant to this  section shall receive an abatement of real property taxes for  a  period  not  to  exceed  fourteen  consecutive  years  beginning in the tax yearimmediately following the issuance of a certificate of  eligibility,  so  long  as such eligible multiple dwelling is used or held out for use for  dwelling purposes, except as otherwise provided herein. During the first  year,  the  abatement  shall be equal to the amount of the real property  tax that would have been due but for such abatement, provided,  however,  that  if the tax lot, during the first year of such abatement, was fully  or partially exempt from real property taxes, other than pursuant to the  exemption authorized by this section, then the abatement shall equal the  amount of the real property tax that would have been due  but  for  such  full  or  partial  exemption. During the second through tenth years, the  abatement shall equal one hundred per centum of such amount; during  the  eleventh  year,  the  abatement  shall  equal  eighty per centum of such  amount; during the twelfth year, the abatement  shall  equal  sixty  per  centum  of  such amount; during the thirteenth year, the abatement shall  equal forty per centum of such amount; and during the  fourteenth  year,  the abatement shall equal twenty per centum of such amount.    The  following table shall illustrate the computation of the abatement  pursuant to this paragraph:      Tax Year Following                           Percentage of     Date of Issuance of                          Applicable     Certificate of Eligibility                   Abatement             1                                      100%             2                                      100%             3                                      100%             4                                      100%             5                                      100%             6                                      100%             7                                      100%             8                                      100%             9                                      100%            10                                      100%            11                                       80%            12                                       60%            13                                       40%            14                                       20%     (b) Notwithstanding paragraph (a) of this subdivision, within  a  city  having  a  population of one million or more persons, in addition to the  benefits set forth in  subdivision  two  of  this  section,  a  tax  lot  containing  an  eligible  multiple  dwelling  that  is  the subject of a  certificate of eligibility issued pursuant to this section and  that  is  in  a  building  that,  in accordance with procedures set forth in local  law, was designated as a landmark before completion of conversion  shall  receive  an  abatement of real property taxes for a period not to exceed  fifteen  consecutive  years  beginning  in  the  tax  year   immediately  following  the issuance of a certificate of eligibility, so long as such  eligible multiple dwelling is used or held  out  for  use  for  dwelling  purposes,  except  as  otherwise provided herein. During the first year,  the abatement shall be equal to the amount of the real property tax that  would have been due but for such abatement, provided, however,  that  if  the  tax  lot,  during  the  first  year of such abatement, was fully or  partially exempt from real property taxes, other than  pursuant  to  the  exemption authorized by this section, then the abatement shall equal the  amount  of  the  real property tax that would have been due but for such  full or partial exemption. During the second through eleventh years, the  abatement shall equal one hundred per centum of such amount; during  the  twelfth  year,  the  abatement  shall  equal  eighty  per centum of suchamount; during the thirteenth year, the abatement shall equal sixty  per  centum  of  such amount; during the fourteenth year, the abatement shall  equal forty per centum of such amount; and during  the  fifteenth  year,  the abatement shall equal twenty per centum of such amount.    The  following table shall illustrate the computation of the abatement  pursuant to this paragraph:      Tax Year Following                           Percentage of     Date of Issuance of                          Applicable     Certificate of Eligibility                   Abatement             1                                      100%             2                                      100%             3                                      100%             4                                      100%             5                                      100%             6                                      100%             7                                      100%             8                                      100%             9                                      100%            10                                      100%            11                                      100%            12                                       80%            13                                       60%            14                                       40%            15                                       20%     (c) If, as a result of application to the tax commission  or  a  court  order  or  action  by  the  department of finance, the billable assessed  value is reduced,  the  department  of  finance  shall  recalculate  the  abatement  utilizing  such  reduced  billable assessed value. The amount  equal to the difference between the abatement originally granted and the  abatement as so recalculated shall be deducted from any refund otherwise  payable or remission otherwise due as a  result  of  such  reduction  in  billable assessed value, and any balance of such amount remaining unpaid  after  making  any  such  deduction  shall  be paid to the department of  finance within thirty days from the date of mailing by the department of  finance of a notice of the amount payable.  Such  amount  payable  shall  constitute  a  tax lien on the eligible multiple dwelling as of the date  of such notice and, if not paid within such thirty-day  period,  penalty  and interest at the rate applicable to delinquent taxes on such eligible  multiple dwelling shall be charged and collected on such amount from the  date of such notice to the date of payment.    4.  If  the aggregate floor area of commercial, community facility and  accessory use space exceeds twelve per centum  of  the  aggregate  floor  area  of  any  building receiving benefits pursuant to this section, the  benefits provided pursuant to this section shall be equal to the  amount  provided  by  subdivisions two, two-a and three of this section, reduced  by a percentage equal to the difference between the per  centum  of  the  aggregate   floor  area  that  is  commercial,  community  facility  and  accessory use space and twelve per centum, provided,  however,  that  if  the aggregate floor area of such building contains more than twenty-five  per  centum of commercial, community facility and accessory use space no  benefits shall be available pursuant to  this  section.  In  calculating  aggregate  floor area for purposes of subdivision two-a of this section,  "aggregate floor area" shall mean  the  intended  aggregate  floor  area  after completion of conversion, as set forth in the building plans filed  with  the  department  of buildings. If, after completion of conversion,  the actual aggregate floor area of commercial,  community  facility  andaccessory use space is greater than the intended aggregate floor area of  such  space  and  the  actual aggregate floor area of such space exceeds  twelve per centum of the actual aggregate floor area, then the  benefits  granted  pursuant  to subdivision two-a of this section shall be revoked  or partially revoked, as required, to reflect the actual aggregate floor  area of such  space.  If  a  building  contains  a  separately  assessed  non-residential  parcel,  the  aggregate floor area of such parcel shall  not be considered in calculating the aggregate floor area of commercial,  community facility and  accessory  use  space  relevant  to  determining  eligibility  for,  and amount of, benefits pursuant to this section. For  the purposes of this section, accessory use space shall not include home  occupation space or  accessory  parking  space  located  not  more  than  twenty-three feet above the curb level.    5. Benefits under this section may not be combined with benefits under  any other section of this chapter for the same tax lot.    6.   Notwithstanding   the   provisions  of  any  local  law  for  the  stabilization of rents in multiple dwellings  or  the  emergency  tenant  protection act of nineteen seventy-four, the rents of each dwelling unit  in an eligible multiple dwelling shall be fully subject to control under  such  local  law,  unless  exempt  under  such local law from control by  reason of the cooperative or condominium status of  the  dwelling  unit,  for  the  entire  period  for  which  the  eligible multiple dwelling is  receiving benefits pursuant to this section, provided, however, that for  purposes of this subdivision, an eligible  multiple  dwelling  receiving  benefits   pursuant  to  this  section  whose  benefits  are  suspended,  terminated or revoked by the  department  of  housing  preservation  and  development  shall  be deemed to be receiving benefits for the length of  time such benefits would have been received if  such  benefits  had  not  been  suspended, terminated or revoked, or for the period such local law  is in  effect,  whichever  is  shorter.  Thereafter,  such  rents  shall  continue  to  be  subject  to  such control, except that such rents that  would not have been subject to such control but  for  this  subdivision,  shall  be  decontrolled  if  the landlord has included in each lease and  renewal thereof for such unit for the tenant in residence at the time of  such decontrol a notice in at least twelve  point  type  informing  such  tenant  that  the  unit  shall become subject to such decontrol upon the  expiration of benefits pursuant to this section.    7. (a) In a non-residential building of less than one hundred thousand  square feet of aggregate floor area,  completion  of  conversion  to  an  eligible  multiple  dwelling  of at least seventy-five per centum of the  aggregate floor area of such non-residential building  must  take  place  within three years of commencement of conversion.    (b)  Only  the  aggregate floor area for which conversion is completed  within such three-year period shall be  considered  in  calculating  the  exemption and abatement provided pursuant to this section.    (c)  In  a  non-residential building of less than one hundred thousand  square feet of aggregate floor area  containing  a  separately  assessed  non-residential  parcel,  the  aggregate  floor  area of such separately  assessed non-residential parcel shall not be considered  in  determining  whether  seventy-five  per  centum  of  the aggregate floor area of such  non-residential building has been  converted  to  an  eligible  multiple  dwelling.    8.  (a)  In  a non-residential building of one hundred thousand square  feet or more of aggregate floor area, completion  of  conversion  to  an  eligible  multiple  dwelling  of at least seventy-five per centum of the  aggregate floor area of such non-residential building  must  take  place  within five years of commencement of conversion, provided, however, that  completion  of  conversion  to an eligible multiple dwelling of at leastfifty per centum of the aggregate floor  area  of  such  non-residential  building   must  take  place  within  three  years  of  commencement  of  conversion, and provided further that proof  of  completion  of  partial  conversion within three years shall be submitted with an application for  a  certificate  of eligibility for full exemption and abatement benefits  pursuant to this section.    (b) In a non-residential building of one hundred thousand square  feet  or  more of aggregate floor area in which completion of conversion to an  eligible multiple dwelling of at least fifty per centum of the aggregate  floor area of such non-residential building has taken place within three  years of commencement of conversion, and  which  is  the  subject  of  a  certificate  of  eligibility for partial exemption and partial abatement  issued pursuant to this section, partial exemption and partial abatement  of real property taxes shall  be  available,  as  follows:  (i)  partial  exemption  benefits  shall  equal  the  amount  of  the  assessed  value  attributable exclusively to the physical improvement resulting from  the  conversion  of  at least fifty per centum of the aggregate floor area of  the non-residential building that has received a  temporary  certificate  of  occupancy  and (ii) partial abatement benefits shall be equal to the  amount of the real property tax that would  have  been  due  during  the  first year of such partial abatement but for such partial abatement upon  the amount of square feet of aggregate floor area of the non-residential  building  that  has  received  a  temporary certificate of occupancy for  conversion of at least fifty per centum of the aggregate floor  area  of  the  non-residential  building,  provided, however, that if the tax lot,  during the first year of such partial abatement was fully  or  partially  exempt  from  real  property taxes, other than pursuant to the exemption  authorized by this section, then the partial abatement shall be equal to  the amount of real property tax that  would  have  been  due  upon  such  amount  of  square  feet  of aggregate floor area of the non-residential  building but for  such  full  or  partial  exemption.  Nothing  in  this  paragraph  shall  be deemed to require an applicant to apply for partial  exemption or abatement benefits  pursuant  to  this  section,  provided,  however,  that  if an applicant applies for a certificate of eligibility  for such benefits, he or she shall submit proof of completion of partial  conversion with the application for such certificate.    (c) In a non-residential building of one hundred thousand square  feet  or  more of aggregate floor area only the aggregate floor area for which  conversion  is  completed  within  the  five-year  period  specified  in  paragraph  (a)  of this subdivision or, in the case of partial exemption  from or partial abatement of real property taxes, the three-year  period  specified  in  paragraph (b) of this subdivision, shall be considered in  calculating the  exemption  and  abatement  provided  pursuant  to  this  section,  provided,  however,  that  neither  partial exemption from nor  partial  abatement  of  real  property  taxes  shall  be  available  for  commercial, community facility or accessory use space.    (d)  In a non-residential building of one hundred thousand square feet  or more  of  aggregate  floor  area  containing  a  separately  assessed  non-residential  parcel,  the  aggregate  floor  area of such separately  assessed non-residential parcel shall not be considered  in  determining  whether  seventy-five  per  centum  or, in the case of partial exemption  from or partial abatement of real property taxes, fifty  per  centum  of  the  aggregate  floor  area  of  such  non-residential building has been  converted to an eligible multiple dwelling.    (e) Any partial exemption from or partial abatement of  real  property  taxes granted pursuant to this section for a non-residential building of  one  hundred  thousand square feet or more of aggregate floor area shall  be revoked if completion of conversion to an eligible multiple  dwellingof  at least seventy-five per centum of the aggregate floor area of such  non-residential building has  not  taken  place  within  five  years  of  commencement of conversion.    (f)  The  time periods specified in subdivisions two and three of this  section shall begin upon  receipt  of  any  partial  exemption  from  or  partial  abatement of real property taxes for a non-residential building  of one hundred thousand square feet or more of aggregate floor area.    9. (a) An application  for  a  certificate  of  eligibility  for  full  exemption and abatement benefits pursuant to this section shall be filed  with  the  department  of  housing preservation and development no later  than close of business day on the thirty-first day of March  immediately  following   the  first  taxable  status  date  following  completion  of  conversion. If a certificate of eligibility for  partial  exemption  and  abatement  benefits  pursuant to this section is sought by an applicant,  an application for a certificate of eligibility for such benefits  shall  be  filed with the department of housing preservation and development no  later than close of business  day  on  the  thirty-first  day  of  March  immediately following the first taxable status date following completion  of  partial  conversion.  The  department  of  housing  preservation and  development shall issue a certificate of eligibility for  benefits  upon  determining  that  the  applicant  satisfies  the  requirements  of this  section.    (b) In addition to any other information required by the department of  housing preservation and development, an application for  a  certificate  of  eligibility  for  benefits  under  this section shall state that the  applicant agrees to comply with and be subject to rules  promulgated  by  the department of finance and the department of housing preservation and  development  to  secure  compliance with this section and all applicable  local, state and federal laws. Such application shall also certify  that  all  taxes, water charges and sewer rents currently due and owing on the  property which is the subject of the application have been paid  or  are  currently   being  paid  in  timely  installments  pursuant  to  written  agreement with the department of finance or other appropriate agency.    (c) The burden of proof shall be on the applicant to show by clear and  convincing evidence that the requirements for  granting  benefits  under  this section have been satisfied. The department of housing preservation  and  development  shall have the authority to require that statements in  connection with the application shall be made under oath.    (d)  The  department  of  finance  and  the  department   of   housing  preservation  and  development  may  promulgate  rules  to carry out the  purposes of this section, including, but not limited to, rules providing  for such administrative charges or  fees  as  are  necessary  to  defray  expenses  in administering the benefit program provided pursuant to this  section and rules defining, or expanding upon the definition  of,  terms  used in this section.    10. Any tax lot which is partly located inside the eligible area shall  be deemed to be entirely located inside such area.    11.  No  benefits  pursuant  to  this section shall be granted for any  conversion to an eligible multiple dwelling unless the  applicant  shall  file, together with the application for a certificate of eligibility, an  affidavit setting forth the following information:    (a)  a statement that within the seven years immediately preceding the  date of application  for  a  certificate  of  eligibility,  neither  the  applicant,  nor any person owning a substantial interest in the property  as defined in paragraph  (c)  of  this  subdivision,  nor  any  officer,  director  or general partner of the applicant or such person was finally  adjudicated by a  court  of  competent  jurisdiction  to  have  violated  section  two hundred thirty-five of the real property law or any sectionof article one hundred fifty of the penal law or any similar  arson  law  of another jurisdiction with respect to any building, or was an officer,  director  or  general  partner  of  a person at the time such person was  finally adjudicated to have violated such law; and    (b)  a  statement setting forth any pending charges alleging violation  of section two hundred thirty-five of  the  real  property  law  or  any  section  of  article  one  hundred fifty of the penal law or any similar  arson law of another jurisdiction with respect to any  building  by  the  applicant or any person owning a substantial interest in the property as  defined  in  paragraph (c) of this subdivision, or any officer, director  or general partner of the applicant or such person, or  any  person  for  whom  the  applicant  or  person  owning  a  substantial interest in the  property is an officer, director or general partner.    (c) "Substantial interest" as used in this subdivision and subdivision  twelve of this section shall mean ownership and control of  an  interest  of ten per centum or more in property or any person owning a property.    12. (a) If any person described in the statement required by paragraph  (b)  of  subdivision  eleven  of  this  section or paragraph (b) of this  subdivision is finally adjudicated by a court of competent  jurisdiction  to be guilty of any charge listed in such statement, the recipient shall  cease  to  be  eligible  for benefits pursuant to this section and shall  pay, with interest, any taxes for which benefits were  claimed  pursuant  to this section.    (b)  The  recipient shall, on the certificate of continuing use, state  whether any charges alleging violation by the recipient  or  any  person  owning  a substantial interest in the property, or any officer, director  or general partner of the  recipient  or  person  owning  a  substantial  interest in the property, or any person for whom the recipient or person  owning a substantial interest in the property is an officer, director or  general partner, of section two hundred thirty-five of the real property  law  or any section of article one hundred fifty of the penal law or any  similar arson law of another jurisdiction, are pending. For purposes  of  this  paragraph,  "substantial  interest" shall have the same meaning as  set forth in paragraph (c) of subdivision eleven of this section.    13. In addition to any other qualifications for benefits  pursuant  to  this section, an applicant must be:    (a)  obligated  to  pay  real  property  tax on the property for which  benefits are sought, whether such obligation arises  because  of  record  ownership  of  such  property, or because the obligation to pay such tax  has been assumed by contract; or    (b) the record owner or lessee of property which is exempt  from  real  property  taxation  who  has  entered into an agreement to sell or lease  such property to another person. Such person  shall  be  a  co-applicant  with such owner or lessee.    14.  A  co-applicant with a public entity shall be eligible to receive  benefits pursuant to this section, provided that for such period as  the  property  which  is  the  subject  of  the certificate of eligibility is  exempt from real property taxation because it is owned or controlled  by  a  public  entity  no  benefits  shall  be  available  to such recipient  pursuant to this section. Such recipient shall receive benefits pursuant  to this section when such property ceases to be eligible  for  exemption  pursuant  to  other  provisions of law, as follows: the recipient shall,  commencing with the date such tax exemption ceases, and continuing until  the expiration of the benefit period pursuant to this  section,  receive  the  benefits  to  which such recipient is entitled in the corresponding  tax year pursuant to this section.    15. For the duration of the benefit period, the recipient  shall  file  annually with the department of housing preservation and development, onor before the taxable status date, a certificate of continuing use. Such  certificate  shall  be on a form prescribed by the department of housing  preservation and development. The department of housing preservation and  development  shall  have the authority to require such information as it  deems necessary to  determine  whether  the  recipient  has  established  continuing   eligibility   for   benefits.  The  department  of  housing  preservation and development  shall  have  the  authority  to  terminate  benefits  pursuant to this section upon failure of the recipient to file  such certificate by the taxable status date. The burden of  proof  shall  be on the recipient to establish continuing eligibility for benefits and  the  department of housing preservation and development may require that  statements made in such certificate shall be made under oath.    16. Any recipient whose property is the subject of  a  certificate  of  eligibility for benefits pursuant to this section who converts aggregate  floor area within such property from the use authorized pursuant to this  section  where  such  conversion  results  in less that seventy-five per  centum of the aggregate floor area of such property being used  or  held  out  for  use for dwelling purposes, or where such conversion results in  more than twenty-five per centum of such aggregate floor area being used  or held out for use for commercial, community facility or accessory  use  space,  or  where  such conversion in a building of one hundred thousand  square feet or more of aggregate floor area that has  a  certificate  of  eligibility  for  a  partial  exemption or partial abatement pursuant to  subdivision eight of this section results in less than fifty per  centum  of such aggregate floor area being used or held out for use for dwelling  purposes,  shall  cease  to be eligible for benefits as of the last date  upon which the recipient met the requirements of this section and proves  by clear and convincing evidence that at least seventy-five  per  centum  of the aggregate floor area of the property was used or held out for use  for  dwelling  purposes,  or  twenty-five  per  centum  or  less  of the  aggregate floor area of such property was used or held out for  use  for  commercial, community facility or accessory use space, or at least fifty  per centum of the aggregate floor area of such property in a building of  one  hundred  thousand  square  feet  or more which is receiving partial  exemption or partial abatement benefits was used or held out for use for  dwelling  purposes,  respectively.  Such  recipient  shall   pay,   with  interest,  any  taxes  for  which benefits were claimed after such date,  including the pro-rata share of tax for which any benefits were  claimed  during  the  tax  year  in which the property was converted to a use not  eligible for benefits under this section.    17. All taxes plus interest required to be paid retroactively pursuant  to this section shall constitute a tax lien as of the date  that  it  is  determined  that such taxes and interest are owed. All interest shall be  calculated from the date the taxes would  have  been  due  but  for  the  benefits  claimed pursuant to this section at three per centum above the  applicable  rate  of  interest  imposed  by  such  city  generally   for  non-payment  of  real property tax with respect to such property for the  period in question.    18. (a) The department of housing  preservation  and  development  may  deny,  reduce,  suspend,  terminate  or  revoke  any  exemption  from or  abatement of tax payments pursuant  to  this  section  whenever:  (i)  a  recipient  fails  to comply with the requirements of this section or the  rules promulgated hereunder; or (ii) an application, certificate, report  or other document submitted by an applicant  or  recipient  pursuant  to  this  section  or  the  rules  promulgated hereunder contains a false or  misleading statement as to  a  material  fact  or  omits  to  state  any  material  fact  necessary  in  order  to make the statements therein not  false  or  misleading.  The  department  of  housing  preservation   anddevelopment  may  declare  any  applicant  or  recipient  referred to in  subparagraph (i) or (ii) of this paragraph to be ineligible  for  future  benefits pursuant to this section for the same or other property.    (b)  Notwithstanding  any other law to the contrary, a recipient shall  be personally liable  for  any  taxes  owed  pursuant  to  this  section  whenever  such  recipient fails to comply with this section or the rules  promulgated hereunder, or makes such false or  misleading  statement  or  omission,  and  the  department  of housing preservation and development  determines that such act was due to the recipient's willful neglect,  or  that  under  the  circumstances  such  act  constituted  a  fraud on the  department of housing  preservation  and  development,  or  a  buyer  or  prospective  buyer  of  the  property. The remedy provided herein for an  action in personam shall be in addition to any other remedy or procedure  for the enforcement of collection of delinquent taxes  provided  by  any  general,  special  or  local  law. Any lease provision which obligates a  tenant to pay taxes which become due because of willful neglect or fraud  by the recipient, or otherwise relieves  or  indemnifies  the  recipient  from  any personal liability arising hereunder, shall be void as against  public policy except where the imposition of such taxes or liability  is  occasioned by actions of the tenant in violation of the lease.    (c)  In order to carry out the purposes of this section the department  of housing preservation and development may administer oaths to and take  the testimony of any person, including but not limited to the  owner  of  property  which  is  the  subject of an application for a certificate of  eligibility or a certificate of eligibility pursuant to this section and  issue subpoenas requiring the attendance of persons and  the  production  of  such  bills,  books,  papers  or  other  documents  as it shall deem  necessary.    (d) If, during the benefit period, any real property tax or  water  or  sewer  charge  due  and  payable  with  respect to property receiving an  exemption or abatement pursuant to this section shall remain unpaid  for  at  least  one  year  following  the  date upon which such tax or charge  became due and payable, all exemptions and abatements  granted  pursuant  to  this  section with respect to such property shall be revoked, unless  within thirty days from the mailing of a notice  of  revocation  by  the  department  of finance satisfactory proof is presented to the department  of finance that any and all delinquent  taxes  and  charges  owing  with  respect to such property as of the date of such notice have been paid in  full  or  are  currently being paid in timely installments pursuant to a  written agreement with the department of finance  or  other  appropriate  agency.  Any  revocation  pursuant  to this paragraph shall be effective  with respect to real property tax which became due and payable following  the date of such revocation.