Ineligible Projects, Items of Work.
28 RCNY § 5-04
in effect§ 5-04 Ineligible Projects, Items of Work.
(a) Ineligible projects. The tax benefits of the Act are not available to:
(1) Any tax lot which is receiving tax exemption or tax abatement under any other provision of state or local law for rehabilitation or new construction, including but not limited to § 420-c, § 421-a, § 421-b, § 421-g, and § 488-a of the Real Property Tax Law, but not including the provisions of the Private Housing Finance Law as of the date that the Certificate of Eligibility is issued.
(2) Any building for which real estate taxes, water or sewer charges, payments in lieu of taxes, emergency repair or relocation liens are due and owing or not satisfied of record as of the last day of the tax quarter preceding the submission date of the Certificate of Eligibility to the Department of Finance, provided that a property rehabilitated by a loan pursuant to Article 8 or Article 15 of the Private Housing Finance Law shall not be ineligible pursuant to this section if there are no real estate taxes or water and sewer charges due and owing as of the last day of a tax quarter preceding commencement of construction of such rehabilitation. The benefits of tax exemption and tax abatement shall not be denied to any property pursuant to this section on account of unpaid real estate taxes, water or sewer charges provided the applicant or his predecessor in title has entered into an installment agreement with the City pursuant to §§ 11-401 et seq. of the Administrative Code and all payments required by said installment agreement have been paid when due.
(3) Any multiple dwelling which results from the conversion of a private dwelling except as provided in 28 RCNY § 5-03(a)(11).
(4) The conversion, alteration or improvement, commenced on or after July 1, 1982, of any Class B multiple dwelling or Class A multiple dwelling used in whole or in part for single room occupancy regardless of the status or use of the building after the conversion, alteration or improvement, unless such conversion, alteration or improvement is carried out with substantial governmental assistance.
(5) Any property for which the improvement is assessed at one thousand dollars ($1,000) or less at the commencement of construction of alterations, improvements or conversion, provided that such assessed valuation test shall not apply if the alterations, improvements or conversion is carried out with substantial governmental assistance.
(6) Any building or structure that results from new construction as distinguished from rehabilitation, alterations, improvements or conversion, as evidenced by issuance of a building permit for new construction. In order for a building to be characterized as rehabilitated, altered, improved or converted, one of the following conditions must be met before, during and after construction:
(i) At least seventy-five percent (75%) of the total area of the original perimeter walls, but in any event at least fifty percent (50%) of the total area of the original non-party perimeter walls, must remain in place as perimeter walls in the building for which benefits are claimed; or
(ii) At least eighty percent (80%) of the original structural floor area of the building must remain in place as structural floor in the building for which benefits are claimed.
(7) The conversion of any building, or portion thereof.
(i) which is located within any district in the County of New York where a floor area ratio, as that term is defined in the Zoning Resolution, of fifteen or greater is permitted by said resolution, or
(ii) located in the City where residential conversion as-of-right is not permitted by said resolution, unless construction actually commenced in the County of New York prior to January 1, 1982, or in the Counties of Kings, Queens, Richmond or the Bronx prior to October 1, 1983, pursuant to an alteration permit, or unless the building is eligible for the benefits of the Act pursuant to 28 RCNY § 5-03(a)(2).
(8) Any conversion commenced on or after June 28, 1988 of any property classified under the Zoning Resolution as a non-profit institution with sleeping accommodations, unless such conversion is carried out with substantial governmental assistance.
(b) Ineligible items of work. The tax benefits of the Act are not available for:
(1) Alterations or improvements done in connection with the refinancing of a housing project pursuant to § 223(f) of the National Housing Act, as amended.
(2) Any portion of a building that results from new construction as distinguished from alterations or improvements or which represents an increase in the gross cubic content of a building from the gross cubic content in existence immediately prior to commencement of construction.
(3) Any portion of a building occupied by stores, professional offices, community facilities or otherwise used for commercial or non-residential purposes pursuant to the classifications set forth in the Zoning Resolution.
(4) Any item of work if a building is receiving tax abatement for the same or a similar item of work at the time of application for the benefits of the Act, provided, however, that if an item or a system which was previously repaired is replaced in its entirety while the building is still receiving the benefits of the Act for such repair, tax benefits for the replacement shall be granted only to the extent that the certified reasonable cost of the replacement exceeds the amount of the previously granted certified reasonable cost attributable to the repair.
(5) An existing dwelling is not eligible to receive tax abatement for any item of work designated as an ordinary repair if the existing dwelling was receiving tax abatement for ordinary repairs pursuant to the Act as of the December thirty-first of the calendar year preceding the date of the application to the Office, unless the ordinary repair independently qualified under 28 RCNY § 5-03(c) as eligible for tax benefits. Tax abatement may not be received for repairs to any items for which benefits of tax abatement are already being received.
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-54638Fetched: 10/24/2026