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Proposed Rules: Closed to Comments (View Public Comments Received:1)

Agency:
Comment By: 
Friday, January 5, 2018
Proposed Rules Content: 

Statement of Basis and Purpose of Proposed Regulations

Various state and local laws vest the New York City Comptroller with authority to set prevailing wage and supplement rates, and to enforce the provisions of the above-mentioned laws by conducting investigations, issuing reports with recommendations or orders, in various situations. Over the years, as additional authority has been given to the Comptroller in this regard, it has become necessary and appropriate to update the Comptroller’s procedural rules. The laws that vest authority in the Comptroller are detailed below.

  • New York state labor law article eight requires payment of prevailing wages and supplements to construction workers on New York city public works projects.
  • New York state labor law article nine requires payment of prevailing wages and supplements to building service employees on building service contracts with city agencies. 
  • New York state real property tax law sections 421-a (8), (16)(h), and 17(g) require payment of prevailing wages to building service employees in certain buildings that receive real estate tax exemptions under that law. New York state real property tax law section 421-a (16)(c) requires payment of an average minimum hourly wage to construction workers on certain projects that are entitled to real estate tax exemptions under that law.
  • New York city administrative code section 6-109 requires payment of prevailing wages and supplements to workers on certain service contracts with city agencies and requires payment of living wages and supplements to workers on certain service contracts with city agencies.
  • New York city administrative code section 19-142 requires payment of prevailing wages and supplements to workers on New York city street excavations.

These proposed regulations set forth a clear and cohesive procedure for setting prevailing wage and supplement rates, and investigating and issuing recommendations or orders in cases brought under the above-mentioned laws. The comprehensiveness of the rules provides enhanced guidance to employers, employees, and building owners covered by these laws.

Section 1 amends the heading of chapter 2 of title 44 of the rules of the city of New York to clarify that the rules are inclusive of Comptroller activity under various laws, and not limited to labor law. Section 2 amends section 2-01 of chapter 2 of title 44 to expand the description of applicable laws.

Section 3 repeals and replaces section 2-02 of chapter 2 of title 44 to address the need for definitions of additional terms. Section 4 repeals and replaces section 2-03 of chapter 2 of title 44 to set forth the Comptroller’s procedures for determining Prevailing Wage and Supplements and how the determinations may be challenged.

Section 5 repeals and replaces section 2-04 of chapter 2 of title 44 to explain the extent of the obligation to pay prevailing wages and supplements, and record-keeping mandates for covered employers.

Section 6 repeals and replaces section 2-05 of chapter 2 of title 44 to explain how compliance investigations of covered employers are commenced, the look-back period, and the process and resolution of such investigations. The new section 2-05 now includes the parameters for penalties that may be assessed in a settlement with a covered employer in which the violation was committed by a subcontractor.

Section 7 amends chapter 2 of title 44 to add a new section 2-06 which describes the rules for hearings, and the interactions between the Comptroller, other agencies, and the office of administrative trials and hearings.

Subject: 

.

Location: 
David N. Dinkins Municipal Building, Room 1117D
One Centre Street
New York, NY 10007
Contact: 

Constantine P. Kokkoris

Adopted Rules: Closed to Comments

Adopted Rules Content: 

The rule amendment would prohibit affordable inclusionary housing units generating zoning bonuses for multiple dwellings on different zoning lots from qualifying a multiple dwelling in the Geographic Exclusion Area that commenced construction on or before December 31, 2015 for 421-a benefits. This restriction would not apply if the affordable inclusionary housing units are in a development involving several zoning lots reviewed and approved as a single unit pursuant to the Zoning Resolution.

Effective Date: 
Fri, 12/29/2017

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Monday, November 13, 2017
Proposed Rules Content: 

The proposed rule amendment would prohibit affordable inclusionary housing units generating zoning bonuses for multiple dwellings on different zoning lots from qualifying a multiple dwelling in the Geographic Exclusion Area that commenced construction on or before December 31, 2015 for 421-a benefits. This restriction would not apply if the affordable inclusionary housing units are in a development involving several zoning lots reviewed and approved as a single unit pursuant to the Zoning Resolution.

Subject: 

.

Location: 
HPD
100 Gold Street 9th Floor Room 9-P10
New York, NY 10038
Contact: 

No contact

Adopted Rules: Closed to Comments

Adopted Rules Content: 

The rule amendments to Chapter 41 of Title 28 of the Rules of the City of New York (the "Inclusionary Housing Rules") would limit the zoning bonus generated by 421-a affordable units to usage on the same zoning lot as the building containing the 421-a affordable units or buildings on a development site on which the affordable housing units are located where the development site includes two or more zoning lots that were reviewed and approved as a single unit pursuant to the New York City Zoning Resolution.

Effective Date: 
Fri, 10/13/2017

Adopted Rules: Closed to Comments

Adopted Rules Content: 

The adopted rule amendment gives HPD retroactive authority to exempt projects that already have a 421-a Preliminary Certificate of Eligibility and are receiving benefits from the 421-a Final Certificate of Eligibility application filing deadline.

Effective Date: 
Wed, 07/19/2017

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Monday, April 3, 2017
Proposed Rules Content: 

HPD’s proposed rule amendment would, under very limited circumstances, allow new multiple dwellings that have a project-based Section 8 contract for subsidies from the United States Department of Housing and Urban Development (“HUD”) that would cover the difference between the tenant’s payment (30% of such tenant’s income) and 120% of HUD Contract Rents to register 120% of HUD Contract Rents as the State Division of Housing and Community Renewal legal regulated rent, which would be above the current cap of 30% of the applicable AMI.

Subject: 

RPTL 421-a Affordable Units Rent Registration Rules Amendments

Location: 
HPD
100 Gold Street Room 9-P10, 9th Floor
New York, NY 10038
Contact: 

No contact

Adopted Rules: Closed to Comments

Adopted Rules Content: 

These adopted rules implement the prevailing wage requirement for building service workers in buildings receiving tax benefits pursuant to Real Property Tax Law Section 421-a enacted by the State Legislature by Chapter 618 of the Laws of 2007 and further amended by Chapter 15 of the Laws of 2008 and Chapter 20 of the Laws of 2015.

Effective Date: 
Sun, 10/23/2016

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Tuesday, August 9, 2016
Proposed Rules Content: 

The proposed rules implement the enforcement mechanism enacted by Chapter 20 of the Laws of 2015 for prevailing wages for building service workers in covered 421-a buildings.

Subject: 

.

Location: 
HPD
100 Gold Street 9th Floor Room 9P10
New York, NY 10038
Contact: 

Elaine R. Toribio

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Friday, June 21, 2013
Proposed Rules Content: 

 

 

Statement of Basis and Purpose of Proposed Rule

 

Real Property Tax Law §421-a provides a real property tax exemption for new multiple dwellings. HPD determines eligibility for §421-a real property tax exemptions. HPD is proposing amendments to Chapter 6 of Title 28 of the Rules of the City of New York (the "421-a Rules") in order to implement recent amendments to the New York City Zoning Resolution and State law. The proposed amendments also reflect programmatic changes in the requirements for the marketing of affordable units constructed to qualify or extend tax exemption benefits for a new multiple dwelling.

 

 

Tax Exemption for Accessory Parking

 

Real Property Tax Law §421-a limits the exemption available for nonresidential space in new multiple dwellings to 12% of the aggregate floor area of commercial, community facility and accessory use space ("12% Cap"). If the nonresidential space exceeds the 12% Cap, the §421-a tax exemption is reduced accordingly. Accessory parking used by residents that is located up to 23 feet above the curb level does not count toward the 12% Cap and is therefore fully exempt from taxation under §421-a. The City Planning Commission has amended Zoning Resolution § 13-21 to expand the use of accessory off-street parking spaces in the Manhattan Core from residents to the public at large. The proposed rule amendments would amend the definition of "Floor area of commercial, community facilities and accessory use space" to reflect this Zoning Resolution amendment and thereby exclude from the 12% Cap accessory off-street parking spaces in the Manhattan Core that will also be available to the public. Such parking will therefore be eligible for the full §421-a real property tax exemption.

 

Extending Deadline for Exemption from Affordability and AV Cap

 

Under §421-a, a Preliminary Certificate of Eligibility entitles a project to a full real property tax exemption for up to three years of construction, and a Final Certificate of Eligibility entitles a project to between 10-25 years of post-completion exemption benefits that are phased out over the benefit period. Preliminary Certificate of Eligibility applications must be filed after the commencement of construction but prior to completion.

 

·         The Geographic Exclusion Area is a residential zone in the City where both the State legislature and the City Council have determined that there is no need for a tax break to incentivize the construction of housing. In the Geographic Exclusion Area, §421-a benefits are not as-of-right and projects must meet certain affordability requirements in order to receive the §421-a tax exemption ("Affordability Requirements"). If projects in the Geographic Exclusion Area provide affordable units offsite instead of onsite, they may still only receive §421-a benefits for a portion of an apartment’s billable exempt assessed value ("AV Cap) depending upon when the project commenced and completed construction and the date of the written agreement for the construction of offsite affordable units. If the AV Cap applies, the value of the unit above this threshold is fully taxable. The AV Cap applies outside the Geographic Exclusion Area as well to any project that does not receive extended §421-a benefits.

·         Chapter 4 of the Laws of 2013 extended the deadline for filing Preliminary Certificate of Eligibility applications from May 14, 2012, to June 24, 2012, for projects that are seeking exemption from the Affordability Requirements and/or the AV Cap. These projects will not be required to meet the Affordability Requirements and/or the AV Cap if they complete construction within 72 months or are entitled to an extension of the 72-month period due to such factors as extraordinary size and complexity, strikes or labor stoppages, industry-wide shortages of construction materials, substantial damage or mortgage foreclosure proceedings.

·         Projects that are the subject of mortgage foreclosure or other lien enforcement proceedings on or before June 24, 2012, in the Geographic Exclusion Area also will be entitled to these completion parameters in accordance with Chapter 4 of 2013; if met, they, too will not have to meet the Affordability Requirements and/or the AV Cap. The proposed rule amendments reflect this month-long filing extension.

 

Elimination of FAR 15 Prohibition for Certain Projects

 

The City Council enacted a prohibition against granting §421-a benefits in the highest density midtown and downtown zoning districts in 1984 ("FAR 15 Prohibition") in order to guard Manhattan’s remaining manufacturing areas against residential encroachment. In 1993, with the continuing decline in manufacturing in Manhattan, the City Council lifted the FAR 15 Prohibition. The City Council continued to exempt projects from the FAR 15 Prohibition until December 31, 2007. Chapter 4 of the Laws of 2013 lifts the FAR 15 Prohibition for specified projects that meet certain conditions specified in the law. The proposed rule amendment reflects these additional exceptions to the FAR 15 Prohibition.

 

Marketing of Affordable Units

 

  • The proposed rule amendments provide that HPD or another governmental entity must market the affordable units in projects seeking extended 421-a benefits outside of the Geographic Exclusion Area.
  • Inside the Geographic Exclusion Area, the proposed rule amendments provide that HPD also will market those affordable units that are constructed without any governmental assistance.
  • The proposed rule amendments clarify the requirements for owners ‘affidavits submitted with the Final Certificate of Eligibility application for projects within the Geographic Exclusion Area. Even projects marketed by HPD must provide this affidavit.
  • Where affordable units are constructed with governmental assistance from sources other than HPD, the proposed rule amendments provide that owners are obligated to notify such governmental entities of the requirement that residents of the community board be granted priority for the purchase or rental of 50% of the affordable units, unless preempted by federal requirements.
  • All such affidavits must also provide that the community preference requirement will be met upon initial occupancy or that it is preempted by federal requirements specified in the affidavits themselves.

 

 

Subject: 

Opportunity to comment on proposed amendments to rules governing tax exemptions under section 421-a of the Real Property Tax Law of the State of New York.

Location: 
HPD
100 Gold Street, 9th Floor, Room 9-P10
New York, NY 10038
Contact: 

Elaine R. Toribio
TIP Director
100 Gold Street
Room 3-Z1
NY NY 10038
(212) 863-7698

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

 

Statement of Basis and Purpose

 

Real Property Tax Law §421-a provides a real property tax exemption for new multiple dwellings. HPD determines eligibility for §421-a real property tax exemptions. HPD is adopting amendments to Chapter 6 of Title 28 of the Rules of the City of New York (the "421-a Rules") in order to implement recent amendments to the New York City Zoning Resolution and State law. The amendments also reflect programmatic changes in the requirements for the marketing of affordable units constructed to qualify or extend tax exemption benefits for a new multiple dwelling.

 

Tax Exemption for Accessory Parking

 

Real Property Tax Law §421-a limits the exemption available for nonresidential space in new multiple dwellings to 12% of the aggregate floor area of commercial, community facility and accessory use space ("12% Cap"). If the nonresidential space exceeds the 12% Cap, the §421-a tax exemption is reduced accordingly. Accessory parking used by residents that is located up to 23 feet above the curb level does not count toward the 12% Cap and is therefore fully exempt from taxation under §421-a. The City Planning Commission has amended Zoning Resolution §13-21 to expand the use of accessory off-street parking spaces in the Manhattan Core from residents to the public at large. The rule amendments amend the definition of "Floor area of commercial, community facilities and accessory use space" to reflect this Zoning Resolution amendment and thereby exclude from the 12% Cap accessory off-street parking spaces in the Manhattan Core that will also be available to the public. Such parking will therefore be eligible for the full §421-a real property tax exemption.

 

Extending Deadline for Exemption from Affordability and AV Cap

 

Under §421-a, a Preliminary Certificate of Eligibility entitles a project to a full real property tax exemption for up to three years of construction, and a Final Certificate of Eligibility entitles a project to between 10-25 years of post-completion exemption benefits that are phased out over the benefit period. Preliminary Certificate of Eligibility applications must be filed after the commencement of construction but prior to completion.

 

  • The Geographic Exclusion Area is a residential zone in the City where both the State legislature and the City Council have determined that there is no need for a tax break to incentivize the construction of housing. In the Geographic Exclusion Area, §421-a benefits are not as-of-right and projects must meet certain affordability requirements in order to receive the §421-a tax exemption ("Affordability Requirements"). If projects in the Geographic Exclusion Area provide affordable units offsite instead of onsite, they may still only receive §421-a benefits for a portion of an apartment's billable exempt assessed value ("AV Cap) depending upon when the project commenced and completed construction and the date of the written agreement for the construction of offsite affordable units. If the AV Cap applies, the value of the unit above this threshold is fully taxable. The AV Cap applies outside the Geographic Exclusion Area as well to any project that does not receive extended §421-a benefits.
  • Chapter 4 of the Laws of 2013 extended the deadline for filing Preliminary Certificate of Eligibility applications from May 14, 2012, to June 24, 2012, for projects that are seeking exemption from the Affordability Requirements and/or the AV Cap. These projects will not be required to meet the Affordability Requirements and/or the AV Cap if they complete construction within 72 months or are entitled to an extension of the 72-month period due to such factors as extraordinary size and complexity, strikes or labor stoppages, industry-wide shortages of construction materials, substantial damage or mortgage foreclosure proceedings.
  • Projects that are the subject of mortgage foreclosure or other lien enforcement proceedings on or before June 24, 2012, in the Geographic Exclusion Area also will be entitled to these completion parameters in accordance with Chapter 4 of 2013; if met, they, too will not have to meet the Affordability Requirements and/or the AV Cap. The rule amendments reflect this month-long filing extension.

 

Elimination of FAR 15 Prohibition for Certain Projects

 

The City Council enacted a prohibition against granting §421-a benefits in the highest density midtown and downtown zoning districts in 1984 ("FAR 15 Prohibition") in order to guard Manhattan's remaining manufacturing areas against residential encroachment. In 1993, with the continuing decline in manufacturing in Manhattan, the City Council lifted the FAR 15 Prohibition. The City Council continued to exempt projects from the FAR 15 Prohibition until December 31, 2007. Chapter 4 of the Laws of 2013 lifts the FAR 15 Prohibition for specified projects that meet certain conditions specified in the law. The rule amendment reflects these additional exceptions to the FAR 15 Prohibition.

 

Marketing of Affordable Units

 

  • The rule amendments provide that HPD or another governmental entity must market the affordable units in projects seeking extended 421-a benefits outside of the Geographic Exclusion Area.
  • Inside the Geographic Exclusion Area, the rule amendments provide that HPD also will market those affordable units that are constructed without any governmental assistance.
  • The rule amendments clarify the requirements for owners' affidavits submitted with the Final Certificate of Eligibility application for projects within the Geographic Exclusion Area. Even projects marketed by HPD must provide this affidavit.
  • Where affordable units are constructed with governmental assistance from sources other than HPD, the rule amendments provide that owners are obligated to notify such governmental entities of the requirement that residents of the community board be granted priority for the purchase or rental of 50% of the affordable units, unless preempted by federal requirements.
  • All such affidavits must also provide that the community preference requirement will be met upon initial occupancy or that it is preempted by federal requirements specified in the affidavits themselves.

 

 

Effective Date: 
Sun, 07/28/2013

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