§ 421-pp. Exemption of newly converted or constructed fully income\nrestricted rental multiple dwellings. 1. (a) A city, town or village\nmay, by local law, provide for the exemption of rental multiple\ndwellings constructed or converted in a benefit area designated in such\nlocal law from taxation and special ad valorem levies, as provided in\nthis section. Subsequent to the adoption of such a local law, any other\nmunicipal corporation in which the designated benefit area is located\nmay likewise exempt such property from its taxation and special ad\nvalorem levies by local law, or in the case of a school district, by\nresolution.\n (b) As used in this section, the term "benefit area" means the area\nwithin a city, town or village, designated by local law, to which an\nexemption, established pursuant to this section, applies.\n (c) As used in this section, the term "rental multiple dwelling" means\na structure, other than a hotel, consisting of ten or more dwelling\nunits, where all but a maximum of two of the units are rented for\nresidential purposes, and all of such units, upon initial rental and\nupon each subsequent rental following a vacancy during the restriction\nperiod or extended restriction period, as applicable, is affordable to\nand restricted to occupancy by individuals or families whose household\nincome does not exceed a weighted average of no less than sixty percent\nof the area median income and no more than eighty percent of the area\nmedian income, adjusted for family size, at the time that such\nhouseholds initially occupy such dwelling units, provided further that\nall of the income restricted units upon initial rental and upon each\nsubsequent rental following a vacancy during the restriction period or\nextended restriction period, as applicable, shall be affordable to and\nrestricted to occupancy by individuals or families whose household\nincome does not exceed one hundred percent of the area median income,\nadjusted for family size, at the time that such households initially\noccupy such dwelling units. The two residential units that are not\nincome restricted must be occupied by superintendents, caretakers,\nmanagers or other employees to whom the space is provided as part or all\nof their compensation without payment of rent and who are employed for\nthe purpose of rendering services in connection with the premises of\nwhich the housing accommodation is a part. In the event no unit is\nprovided or rented to such an employee, all units in the building must\nbe income restricted pursuant to this paragraph. Provided further that\nany local law authorizing an exemption pursuant to this section may\nprovide for the area median income weighted average within the amounts\nset forth in this paragraph. Such restriction period shall be in effect\ncoterminous with the benefit period, provided, however, that the tenant\nor tenants in an income restricted dwelling unit at the time such\nrestriction period ends shall have the right to lease renewals at the\nincome restricted level until such time as such tenant or tenants\npermanently vacate the dwelling unit.\n 2. Eligible newly-constructed or converted rental multiple dwellings\nin a designated benefit area shall be wholly exempt from taxation while\nunder construction, subject to a maximum of three years. Such property\nshall then be exempt for an additional period of thirty years. Provided,\nhowever:\n (a) Taxes shall be paid during the exemption period in an amount to be\ndetermined by the local law providing the exception pursuant to this\nsection, provided, however, that amount shall be no greater than ten per\ncentum of the shelter rent of the eligible rental multiple dwelling\nexempted pursuant to this section.\n (b) No other exemption may be granted concurrently to the same\nimprovements under any other section of law.\n 3. To be eligible for exemption under this section, any new\nconstruction shall take place on vacant, predominantly vacant or\
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