§ 36-03 — Application Procedures

§ 36-03 Application Procedures.

An applicant must receive approval for a series of milestones in order to receive ICAP tax abatement benefits. a. Applicants. (1) An entity is eligible to apply for ICAP benefits: (i) if it is obligated to pay real property tax on the property, either by virtue of ownership or contract; or (ii) if the property is exempt from real property taxation and the record owner or lessee of such property has entered into an agreement to sell or lease such property to another entity, provided that both parties to the agreement are co-applicants. (2) Co-Application with public entity. A co-applicant with a public entity may be eligible for abatement benefits except benefits will not be available for any period for which the property is exempt from real property tax because it is owned or controlled by a public entity. Abatement benefits will only be available if the recipient meets the requirements of Subdivision g of § 11-270 of the Administrative Code. (3) Multiple buildings. Where a completed project will result in creating two or more buildings, and separate building permits were obtained, a separate application must be filed for each permitted building. b. Preliminary application. (1) An applicant must submit a completed preliminary application before issuance of the first building permit, or if no permit is required, the start of construction. The preliminary application must be made on the form prescribed by the Commissioner. The completed preliminary application must be accompanied by a narrative describing the proposed project, including: (i) the project site; (ii) the proposed improvement(s); (iii) the proposed uses of the building or structure upon completion of improvements; and (iv) whether the improvements are building-wide or limited to specific building systems or renovations to particular areas (such as specific floors or lobby) of the building. (2) Failure to file a preliminary application Certificate of Eligibility for ICAP benefits before receipt of the first building permit, or if no permit is required, the start of construction, will disqualify the project from receiving benefits under this program. (3) The preliminary application deadline for ICAP benefits is March 1, 2029. Work performed pursuant to a building permit first issued after April 1, 2029, shall not be included in the project, except as otherwise provided by statute. (4) Work excluded from the project shall not be considered for purposes of meeting the minimum required expenditure or determining the completion date. (5) If a preliminary application includes an application for benefits for a parking facility, such preliminary application must include documentation in accordance with 19 RCNY § 36-06(i). c. M/WBE requirements. (1) For projects with a total estimated cost of between $750,000 and $1,500,000 an ICAP applicant must certify that it accessed the directory of City certified M/WBE business enterprises ("directory"). The ICAP applicant must file the certification with the department in conjunction with the final application for benefits along with a report of whether or not efforts were made by the applicant to include Minority- and Women-Owned business enterprises in the construction work on property for which benefits are sought and describe those efforts. (2) For projects with a total estimated cost of $1,500,000 or more ICAP applicants must comply with the following M/WBE requirements to obtain abatement benefits: (i) After filing a preliminary application for benefits, the applicant must inform the division of contracting and subcontracting opportunities at construction sites where the applicant will be performing construction work subject to benefits pursuant to this part. The division shall make information on such contracting and subcontracting opportunities available to the general public by posting them on its website. (ii) The ICAP applicant must review the directory to identify Minority- or Women-Owned business enterprises that may be qualified to perform contracting or subcontracting work on construction projects subject to benefits pursuant to this part. (iii) For each subcontract on the project, the ICAP applicant must solicit or arrange for the solicitation of bids from at least three Minority- or Women-Owned enterprises to perform contracting work. (iv) The ICAP applicant must maintain records demonstrating its compliance with these M/WBE requirements. (v) When filing a final application for benefits with the department, the ICAP applicant must certify that it has complied with and will continue to comply with the M/WBE provisions. The certification must also include: (A) the name and contact information of every minority or women-owned business enterprise that the applicant solicited bids from and (B) whether any such Minority- or Women-Owned firm was awarded a subcontract. (vi) Work performed by an applicant's contractors or subcontractors is eligible construction work except when such work is not included in the project description, contained in the final application or an amendment thereto. (vii) The division shall have authority to audit the records maintained by each applicant to ensure compliance with the requirements of such subdivision. (viii) The applicant must maintain records demonstrating its compliance with the provisions of this subdivision. (3) Each ICAP application must contain a statement that the ICAP applicant and its contractors and subcontractors agree to be equal opportunity employers and comply with all applicable requirements of Executive Order 50 of 1980, as amended by Executive Order 94 of 1986, Executive Order 108 of 1986, and Executive Order 159 of 2011 ("Executive Order 50"), and the rules of the division. (4) ICAP applicants must file an employment report with the division for projects with a total estimated cost of $2,500,000 or more or if any subcontractor will perform construction work with a total estimated cost of $1,000,000 or more. If the ICAP applicant or any of its contractors or subcontractors will not perform work meeting these estimated dollar thresholds, the ICAP applicant must file a letter with the division that the applicant or subcontractor will not perform construction work having such an estimated cost. (5) (i) The division will inform the Commissioner in writing when an applicant or its contractors or subcontractors, or any successor to such applicant, or its contractors or subcontractors, has failed to comply with any requirement of Executive Order 50 or the rules of the division, whereupon the division may issue a written recommendation to the Commissioner that any benefit provided under this Chapter be denied, suspended, revoked or terminated. (ii) If the Commissioner has determines, in accordance with the procedures in 19 RCNY § 36-15, that an ICAP applicant, contractor, or subcontractor has made false or misleading statements or omissions in employment reports provided to the division, all benefits will be revoked from the date of the false statement or omission. d. Final application. (1) An applicant must submit to the department a completed final application no later than one year from the date of issuance of the first building permit for construction work on the project, or when construction work does not require a building permit, no later than one year from the date of commencement of construction on the project, for all projects including new projects as described in 19 RCNY § 36-05(a). Construction does not have to be completed prior to submitting the final application. Stop work orders issued by the department of buildings will not extend the deadline for filing the final application. (2) Failure to file a final application no later than one year from the date of issuance of the first building permit for construction work on the project, or when construction work does not require a building permit, no later than one year from the date of commencement of construction on the project, will disqualify the project from receiving benefits under this chapter. (3) The final application must be made on the form prescribed by the department. As part of the final application the applicant must provide a narrative description of the project which must include: (i) A written description of the proposed project stating the specific work to be undertaken including the floor area (below grade and above grade floors and roof) and location within the property of space created or affected by the work; (ii) List each permit number and the work associated with such permit, including elevator permits; (iii) List any work that did not require a permit; (iv) Date or anticipated date of start of construction; (v) Estimated date of completion of project or actual date of first temporary certificate of occupancy or final certificate of occupancy, and include copies of any certificate of occupancy issued; (vi) Contractors and subcontractors by trade, including addresses; (vii) Cost of construction broken down by major categories of expenses; (viii) Number and location of buildings on project property and where multiple buildings exist on a lot or project site, include a survey showing each building; and (ix) (A) Statement of current or prior use by square foot; and (B) Statement of proposed use by square feet, distinguishing between commercial and residential use. (4) The applicant must also provide copies of all executed construction contracts or a statement from the engineer or architect detailing cost estimates. (5) The department reserves the right to require that any documents submitted in support or as part of any application be certified. (6) No ICAP benefits will be granted for any construction work unless the applicant files with the final application an affidavit setting forth the following information: (i) statement that within the seven years immediately preceding the date of the final application for benefits, neither the applicant, nor any person owning a substantial interest in the property, 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 235 of the real property law or any section of Article 150 of the penal law or any similar arson law of another state 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 (ii) a statement setting forth any pending charges alleging violation of Section 235 of the real property law or any section of Article 150 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 or any officer, director or general partner of the applicant or such person. (iii) "Substantial interest" as used in Subparagraphs (i) and (ii) of this paragraph will mean ownership and control of an interest of 10 percent or more in a property or any person owning a property. (iv) If any person described in the statement required by Subparagraph (i) or (ii) of this paragraph is finally adjudicated by a court of competent jurisdiction to be guilty of any charge listed in such statement, the recipient will cease to be eligible for benefits pursuant to this part and must pay with interest any taxes for which an abatement was claimed pursuant to this part. e. Notice of completion. (1) The applicant must file the notice of completion with the department within 120 days of the taxable status date after completion of construction. Abatement benefits will not be granted until the applicant files the notice of completion. If the notice of completion is not filed within such 120 day period, abatement benefits will not be granted until such notice is filed, and the department may delay the granting of such benefits, at the departments discretion, to investigate the reason for the late filing. Except as allowed by Paragraph (2) of this subdivision, the notice of completion must be submitted electronically in the format required by the department on the department's website, and in accordance with the instructions for submission of such notices of completion described on the website. (2) Request for waiver of electronic filing requirement. The Commissioner may, for good cause, waive the requirement that the notice of completion be filed electronically. A request for waiver of the electronic filing requirement must be made in writing no later than 30 days prior to the deadline for filing a notice of completion. Any filing in paper format must be filed with the Department, at such address as may be designated by the department. (3) The notice of completion must contain certification by a New York State licensed engineer or architect, or general contractor that the narrative description provided in the final application for Certificate of Eligibility, as last amended, is an accurate and complete description of the completed project; and a final certificate of occupancy. (4) The notice of completion must include a detailed itemized statement of the cost of construction. This statement must be certified by a certified public accountant, unless the project cost is less than $2,500,000 in which case the statement may be certified by the applicant. (5) All applications must be submitted to the address set forth on the applicable forms. (6) An applicant may contest the department’s determination of a project’s completion of construction date by filing an appeal with the department no later than 15 calendar days after the issuance of notice of the department’s determination. Such appeal must be in writing and must briefly state all the facts or other bases upon which such applicant contests such completion of construction date. The commissioner or a designee of the commissioner will respond to such appeal in writing no later than 60 calendar days from the date of receipt of the appeal. Any such designee will not be the same individual who made the determination that served as the basis of the appeal. The denial of an appeal is a final agency determination reviewable pursuant to Article 78 of the New York Civil Practice Law and Rules. f. Fees. The filings required by this section must be accompanied by the following fees: (1) Preliminary application filing: $150 (2) Final application filing: $500 (3) Notice of Completion filing: $1,000 None of the filings listed above will be processed until the applicable fee is paid. All fees must be paid in a form acceptable to the Department. (Added City Record 2/10/2017, eff. 3/12/2017; amended City Record 10/6/2025, eff. 11/5/2025; amended City Record 11/20/2025, eff. 12/20/2025)