N.Y. Real Property Tax Law Section 488-A
Rehabilitation of certain class B multiple dwellings and class A multiple dwellings used for single room occupancy

1.

Definitions. For the purposes of this section the following terms shall have the meaning specified in this subdivision:

a.

“Eligible real property” shall mean:

(i)

any class B multiple dwelling;

(ii)

any class A multiple dwelling used for single room occupancy pursuant to Multiple Dwelling Law § 248 (Single room occupancy)section two hundred forty-eight of the multiple dwelling law which contains no more than twenty-five percent class A dwelling units which contain lawful sanitary and kitchen facilities within the dwelling unit, provided that in the case of a multiple dwelling containing ten dwelling units or less, up to forty percent of the dwelling units may be class A units. Notwithstanding the foregoing, eligible real property shall not include college and school dormitories, club houses, or residences whose occupancy is restricted to an institutional use such as housing intended for use primarily or exclusively by the employees of a single company or institution. A building is an eligible real property only if it qualifies as such after completion of the eligible improvements, but need not have been an eligible real property prior to the eligible improvements.

(iii)

not-for-profit institutions with sleeping accommodations.

b.

“Eligible improvements” shall be limited to the following catogories of work, provided further that such work shall be in conformity with all applicable laws:

(i)

replacement of a boiler or burner or installation of an entire new heating system;

(ii)

replacement or upgrading of electrical system;

(iii)

replacement or upgrading of elevators;

(iv)

installation or replacement or upgrading of the plumbing system, including water main and risers;

(v)

replacement or installation of walls, ceilings, floors or trim where necessary;

(vi)

replacement or upgrading of doors, installation of security devices and systems;

(vii)

installation, replacement or upgrading of smoke detectors, fire alarms, fire escapes, or sprinkler systems;

(viii)

replacement or repair of roof, leaders and gutters;

(ix)

replacement or installation of bathroom facilities;

(x)

installation of wall and pipe insulation;

(xi)

replacement or upgrading of street connections for water or sewer services;

(xii)

replacement or installation of windows, or installation of window gates or guards;

(xiii)

installation or replacement of boiler smoke stack;

(xiv)

pointing, waterproofing and cleaning of entire building exterior surface;

(xv)

improvements designed to conserve the use of fuel, electricity or other energy sources;

(xvi)

improvements unique to congregate living facilities, as defined by rules and regulations promulgated by the local housing agency, pursuant to subdivision seven of this section; and

(xvii)

work necessary to effect compliance with all applicable laws including but not limited to the multiple dwelling law, the New York city housing maintenance code and the New York city building code.

c.

“Local housing agency”. Local housing agency shall have the same meaning as the term “agency” under General Municipal Law § 502 (Definitions)section five hundred two of the general municipal law, except that in cities of over one million in population the term shall mean the department of housing preservation and development.

d.

“Permanent resident”. Permanent resident shall mean a person who has resided in eligible real property for six months or more, has a lease with a term of six or more months, or has requested a lease pursuant to the provisions of the rent stabilization code for housing accommodations located in hotels.

2.

Local legislative action. Any city to which the multiple dwelling law is applicable, acting through its local legislative body or other governing agency, is hereby authorized and empowered to adopt and amend local laws or ordinances up to and including December thirty-first, two thousand nineteen, to provide that any increase in assessed valuation of eligible real property shall be exempt from taxation for local purposes and to provide for the abatement of taxes on eligible real property, including the land, in accordance with this section.

3.

Tax exemption. Any increase in assessed valuation of eligible real property resulting from eligible improvements shall be exempt from taxation for local purposes for a period of thirty-two years, provided that:

(i)

the eligible improvements are commenced after July first, nineteen hundred eighty, but prior to December thirty-first, two thousand nineteen, and are completed within thirty-six months of commencement;

(ii)

the eligible improvements are approved by the local housing agency with respect to their cost and their qualifications for the benefits of this section;

(iii)

the exemption may commence no sooner than the July first following the filing with the local agency responsible for real property tax assessment of a certification of eligibility issued by the local housing agency for such exemption; provided, however, that if the rehabilitation is carried out with substantial government assistance as part of a program for affordable housing, the exemption may commence no sooner than the July first following the commencement of construction of eligible improvements;

(iv)

immediately prior to, and during, the construction of the eligible improvements, fifty or more percent of the dwelling units in such eligible real property are occupied by permanent residents; provided that such occupancy requirement shall not apply to a vacant, governmentally owned, multiple dwelling, nor to a privately owned multiple dwelling which had been vacant for not less than two years prior to the commencement of construction of eligible improvements, nor to a vacant multiple dwelling where the eligible improvements are carried out with the substantial assistance of grants, loans or subsidies from any federal, state or local agency or instrumentality or any not-for-profit philantropic organization one of whose primary purposes is providing low or moderate income housing;

(v)

there shall be no outstanding real estate taxes, water and sewer charges, payments in lieu of taxes or other municipal charges due and owing as of the tax quarter prior to commencement of tax exemption to this section;

(vi)

except in the case of eligible real property which is receiving or has received assistance pursuant to a governmental rent subsidy program, or which is owned by a not-for-profit corporation or by a wholly owned subsidiary of a not-for-profit corporation and which is receiving or has received assistance pursuant to a governmental loan subsidy program, as defined by the rules and regulations promulgated by the local housing agency, pursuant to subdivision seven of this section, for the construction of eligible improvements, the initial rent, after completion of eligible improvements, for ninety percent of the total number of dwelling units occupied by permanent residents in a class A or class B multiple dwelling other than apartments shall not exceed the greater of either the amount of any governmental rental assistance received by an occupant or seventy-five percent of the rent which is permitted to be charged for zero-bedroom units on the moderate rehabilitation fair market rent schedule as determined by the United States department of housing and urban development for the housing assistance payments program under section eight of the national housing act;

(vii)

no person who lives in the eligible real property shall be required by the owner to vacate the eligible real property in order to perform the eligible improvements or any related work.

4.

Tax abatement. Eligible real property which qualifies for exemption from taxation for local purposes for eligible improvements shall also be eligible for an abatement of real property taxes in an amount no greater than twelve and one-half percent of the reasonable cost of eligible improvements certified by the local housing agency, which abatement may commence on the first day of the first tax quarter following the filing with the local agency responsible for real property tax assessment of a certification of eligibility issued by the local housing agency for such abatement; provided, however that if the rehabilitation is carried out with substantial government assistance as part of a program for affordable housing the abatement may commence no sooner than the first day of the first tax quarter following the commencement of construction of eligible improvements, provided that:

(i)

the annual abatement shall not exceed the amount of taxes otherwise payable in the corresponding tax year;

(ii)

the period during which such abatement is effective shall not exceed twenty consecutive years from the date such abatement first becomes effective; and

(iii)

the total abatement shall not exceed the lesser of one hundred fifty percent of the certified reasonable costs of eligible improvements or the actual costs as determined by the local housing agency pursuant to its rules and regulations.

5.

Continuing requirements. During the period of tax exemption or abatement pursuant to this section, exemption and abatement shall be conditional upon continuing compliance with the following requirements:

(i)

compliance with all applicable provisions of law, including but not limited to the multiple dwelling law, the local building code and the local housing maintenance code;

(ii)

all dwelling units, except owner occupied units, shall be subject to the emergency housing rent control law or the local emergency housing rent control act, or the emergency tenant protection act of nineteen seventy-four, or any local laws enacted pursuant thereto, or the rent stabilization law of nineteen hundred sixty-nine; provided, however that the department of housing preservation and development may exempt from this requirement dwelling units that are not occupied by permanent residents in those buildings owned by a not-for-profit corporation or by a wholly owned subsidiary of a not-for-profit corporation and which are improved with the aid of a rehabilitation loan from any governmental agency or instrumentality or operated pursuant to a contract with a governmental entity;

(iii)

it shall not receive tax exemption or tax abatement for rehabilitation or new construction under any other provision of law; and

(iv)

the eligible improvements shall not be used as the basis for any application for rent increases and the owner shall file a statement to such effect with the local housing agency and with any applicable rent agency, provided, however, that rents of units improved with the aid of a rehabilitation loan from any governmental agency or instrumentality may within the limitations established by this section be increased pursuant to the rules and regulations of the local housing agency; and

(v)

a minimum of seventy-five percent of the dwelling units shall be rental units occupied by permanent residents, provided, however, that the local housing agency may exempt from this requirement those buildings improved with the aid of a rehabilitation loan from any government agency or instrumentality or operated pursuant to a contract with a governmental entity.

6.

Revocation. The benefits of this section may be revoked or reduced upon a finding by the local housing agency or local finance agency that:

(i)

the application for benefits hereunder or the annual certification required hereunder contains a false statement or false information as to a material matter or omits a material matter;

(ii)

real estate taxes, water and sewer charges, payments in lieu of taxes or other municipal charges are due and owing for more than one year; or

(iii)

the eligible real property fails to comply with one or more of the provisions or requirements of this section.

7.

Rules and regulations. The local agencies of government charged with the administration of this section may promulgate rules and regulations to carry out the provisions of this section.

8.

Annual certification. During the period of tax exemption or abatement pursuant to this section, the owner shall submit an annual certification to the local housing agency in a form to be prescribed by such agency. Failure to submit such certification may result in revocation of benefits. Such certification shall include the following:

(i)

the total number of dwelling units within the eligible real property and the number of dwelling units occupied by permanent residents;

(ii)

the number of dwelling units subject to the provisions of the emergency housing rent control act, the emergency tenant protection act of nineteen seventy-four or any local laws enacted pursuant thereto, the emergency housing rent control law or the rent stabilization law of nineteen hundred sixty-nine; and

(iii)

all such other information required by the local housing agency.

Source: Section 488-A — Rehabilitation of certain class B multiple dwellings and class A multiple dwellings used for single room occupancy, https://www.­nysenate.­gov/legislation/laws/RPT/488-A (updated Oct. 2, 2015; accessed Oct. 26, 2024).

420‑A
Nonprofit organizations 420‑B
Nonprofit organizations 420‑C
Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or ... 421‑A
Affordable New York Housing Program 421‑B
Exemption of certain private dwellings, multiple dwellings and improvements from local taxation 421‑C
Exemption of certain new multiple dwellings from local taxation 421‑D
Exemption of multiple dwellings financed by the New York state housing finance agency from local taxation 421‑E
Exemption of cooperative, condominium, homesteading and rental projects from local taxation 421‑F
Exemption of capital improvements to residential buildings and certain new construction 421‑FF
Exemption of capital improvements to residential buildings in cities with a population between twenty-seven thousand five hundred and twe... 421‑G
Exemption from local taxation of certain multiple dwellings 421‑H
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑H*2
Exemption of capital improvements to residential buildings 421‑I
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑I*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑J
Exemption of capital investment in multiple dwelling buildings within certain cities 421‑J*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑K
Exemption of certain multiple dwellings 421‑L
Exemption of capital improvements to residential buildings in certain towns 421‑M
Exemption of certain new or substantially rehabilitated multiple dwellings from local taxation 421‑N
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑O
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑O*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑P
Exemption of newly-constructed or converted rental multiple dwellings 421‑P*2
Exemption of capital improvements to residential new construction involving the creation of accessory dwelling units 422
Not-for-profit housing companies 423
Phase out of exemption for redevelopment company projects upon the cessation of the tax exemption granted pursuant to contract 424
Institute of arts and sciences 425
School tax relief (STAR) exemption 425‑A
Abatement of county taxes in special assessing units 426
Opera houses 427
Performing arts buildings 428
Fraternal organizations 429
Real property used for professional major league sports 430
Interdenominational centers 432
Theatrical corporations created by act of congress 434
Academies of music 436
Officers of religious denominations 438
Trustees of a hospital, playground and library 440
Infant homes 442
Soldiers monument corporations 444
Historical societies 444‑A
Historic property 446
Cemeteries 450
Agricultural societies 452
Veterans organizations 454
Indians 455
Exemption option 456
Municipal railroads 457
Exemption for first-time homebuyers of newly constructed homes 458
Veterans 458‑A
Veterans 458‑B
Exemption for Cold War veterans 458‑C
Improvements to property of severely injured members of the armed forces of the United States 459
Persons who are physically disabled 459‑A
Improvements to property made pursuant to the Americans with Disabilities Act of 1990 459‑B
Physically disabled crime victims 459‑C
Persons with disabilities and limited incomes 460
Clergy 462
Religious corporations 464
Incorporated associations of volunteer firefighters 466
Volunteer firefighters and fire companies in villages 466‑A
Volunteer firefighters and volunteer ambulance workers 466‑A*2
Volunteer firefighters and volunteer ambulance workers 466‑B
Volunteer firefighters and volunteer ambulance workers 466‑C
Volunteer firefighters and volunteer ambulance workers 466‑C*2
Volunteer firefighters and volunteer ambulance workers 466‑C*3
Volunteer firefighters and volunteer ambulance workers 466‑C*4
Volunteer firefighters and volunteer ambulance workers 466‑C*5
Volunteer firefighters and volunteer ambulance workers 466‑C*6
Volunteer firefighters and volunteer ambulance workers 466‑C*7
Volunteer firefighters and volunteer ambulance workers 466‑D
Volunteer firefighters and volunteer ambulance workers 466‑D*2
Volunteer firefighters and volunteer ambulance workers 466‑D*3
Volunteer firefighters and volunteer ambulance workers 466‑D*4
Volunteer firefighters and volunteer ambulance workers 466‑E
Volunteer firefighters and volunteer ambulance workers 466‑E*2
Volunteer firefighters and volunteer ambulance workers 466‑E*3
Volunteer firefighters and volunteer ambulance workers 466‑E*4
Volunteer firefighters and volunteer ambulance workers 466‑F
Volunteer firefighters and volunteer ambulance workers 466‑F*2
Volunteer firefighters and volunteer ambulance workers 466‑F*3
Volunteer firefighters and volunteer ambulance workers 466‑F*4
Volunteer firefighters and volunteer ambulance workers 466‑F*5
Un-remarried spouses of volunteer firefighters or volunteer ambulance workers killed in the line of duty 466‑G
Volunteer firefighters and volunteer ambulance workers 466‑G*2
Volunteer firefighters and volunteer ambulance workers 466‑H
Volunteer firefighters and volunteer ambulance workers 466‑H*2
Un-remarried spouses of deceased volunteer firefighters or volunteer ambulance workers 466‑I
Volunteer firefighters and volunteer ambulance workers 466‑J
Volunteer firefighters and volunteer ambulance workers 466‑K
Volunteer firefighters and volunteer ambulance workers 466‑L
Extension of benefits 467
Persons sixty-five years of age or over 467‑A
Partial tax abatement for residential real property held in the cooperative or condominium form of ownership in a city having a populatio... 467‑B
Tax abatement for rent-controlled and rent regulated property occupied by senior citizens or persons with disabilities 467‑C
Exemption for property owned by certain housing companies or sublessees of the battery park city authority and occupied by senior citizen... 467‑D
Assessment exemption for certain living quarters constructed to be occupied by a senior citizen or disabled individual 467‑E
Rebate for owners or tenant-stockholders of one, two or three family residences or residential property held in the condominium or cooper... 467‑F
Protective and safety devices tax abatement 467‑G
Rebate for owners of certain real property seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth of Octob... 467‑H
Partial abatement for certain rebuilt real property seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth... 467‑I
Real property tax abatement 467‑J
Exemption for certain residential properties located in certain counties 467‑K
Senior citizen longtime resident exemption 467‑K*2
Exemption for certain residential property required to participate in the federal flood insurance program 467‑L
Rebate for owners of certain real property in the city of New York 467‑M
Exemption from local real property taxation of certain multiple dwellings in a city having a population of one million or more 468
Fire patrol and salvage corps 469
Assessment exemption for living quarters for parent or grandparent 470
Exemption for improvements to real property meeting certification standards for green buildings 472
Pharmaceutical societies 474
Dental societies 476‑A
Railroad passenger stations 477
Tax exemption for industrial waste treatment facilities 477‑A
Tax exemption for air pollution control facilities 478
Tax exemption for off-street parking facilities providing underground shelters 479
Fallout shelter facilities 480
Forest and reforested lands 480‑A
Taxation of forest land 481
Taxation of land used for agricultural production 482
Quarantined lands 483
Exemption from taxation of structures and buildings essential to the operation of agricultural and horticultural lands 483‑A
Farm silos, farm feed grain storage bins, commodity sheds, bulk milk tanks and coolers, and manure storage and handling facilities 483‑B
Historic barns 483‑C
Temporary greenhouses 483‑D
Farm or food processing labor camps or commissaries 483‑E
Anaerobic digestion facilities 484
Urban redevelopment corporations and companies 485
Nuclear powered electric generating facilities 485‑A
Residential-commercial urban exemption program 485‑B
Business investment exemption 485‑C
Exemption from taxation of real property used in manufacture of steel in cities of fifty thousand or more persons 485‑D
Water-works corporations 485‑E
Empire zone exemption 485‑F
Banking development districts 485‑G
Infrastructure exemption 485‑H
Residential investment exemption 485‑I
Residential investment exemption 485‑I*2
Residential investment exemption 485‑J
Residential property improvement exemption 485‑J*2
Residential investment exemption 485‑J*3
Residential investment exemption 485‑J*4
Residential investment exemption 485‑J*5
Residential investment exemption 485‑K
Residential investment exemption 485‑L
Residential property improvement 485‑L*2
Residential investment exemption 485‑M
Residential investment exemption 485‑N
Residential-commercial exemption program 485‑O
New residential property exemption 485‑P
Economic transformation area exemption 485‑Q
Residential investment exemption 485‑R
Residential redevelopment inhibited property exemption 485‑S
Residential reassessment exemption 485‑S*2
Residential reassessment exemption 485‑S*3
Mixed use exemption program for villages 485‑T
Owner occupied residential property exemption program 485‑U
Class one reassessment exemption 485‑V
Residential revaluation exemption 485‑V*2
Residential and mixed-use investment exemption 485‑W
Newly constructed single-family and multi-family residential exemption 485‑X
Affordable neighborhoods for New Yorkers tax incentive 486
Non-profit medical and dental indemnity, or hospital service corporations 486‑A
Non-profit corporations operating as health maintenance organizations 487
Exemption from taxation for certain energy systems 487‑A
Exemption from taxation of conservation improvements to certain residential premises 488
Retirement systems 488‑A
Rehabilitation of certain class B multiple dwellings and class A multiple dwellings used for single room occupancy 489
Exemption from taxation of alterations and improvements to multiple dwellings to eliminate fire and health hazards
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Accessed:
Oct. 26, 2024

Last modified:
Oct. 2, 2015

§ 488-A’s source at nysenate​.gov

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