Section 489-FFFFFF. Conversion of property

1. Conversion from commercial to
  industrial   use.  Where  a  property  has  been  granted  benefits  for
  commercial or renovation construction work, but such property is used as
  industrial property before the benefits period  expires,  such  property
  shall   continue  to  receive  benefits  for  commercial  or  renovation
  construction work.
    2. Conversion from industrial use to commercial use. Where a  property
  has  been  granted benefits for industrial construction work, and where,
  before the benefit period expires, less than seventy-five percent of the
  total net square footage is used or held out for use  for  manufacturing
  activities,  no  further benefits for industrial construction work shall
  be provided except as provided in this subdivision. Taxes, together with
  interest, shall become due and owing after such  date  of  the  use  for
  purposes other than industrial, except as provided in this subdivision.
    (a)  Any  applicant  whose  property  has been granted a tax abatement
  under  this  title  for  industrial  construction  work  in  a   special
  commercial  abatement  area  who  would  have  been  eligible to receive
  benefits for commercial construction work at  the  time  such  applicant
  applied  for  benefits  shall  continue  to  receive  an  abatement  for
  industrial construction work.
    (b) Any applicant whose property has been granted benefits under  this
  title   for  industrial  construction  work  other  than  in  a  special
  commercial abatement area  who  would  have  been  eligible  to  receive
  benefits  for  commercial  construction  work at the time such applicant
  applied for benefits shall, commencing with the date  of  conversion  to
  commercial  property  and continuing until the expiration of the benefit
  period for commercial construction work,  receive  any  abatement  which
  such  applicant  would  have  received  in  the  corresponding  tax year
  pursuant to the benefits granted for commercial construction work.
    (c) Any applicant whose property has been granted benefits under  this
  title  for industrial construction work in any area of the city on whose
  property at least sixty-five percent of the net square footage continues
  to be used or held  out  for  use  for  manufacturing  activities  after
  conversion  to commercial property, shall not be required to pay the pro
  rata share of tax for which an abatement was claimed during the tax year
  in which such conversion occurred.
    (d)  Where  the  property  is  receiving  the  additional   industrial
  abatement pursuant to paragraph (e) of subdivision three of section four
  hundred  eighty-  nine-bbbbbb  of this title, such additional industrial
  abatement  shall  cease  from  the  date  of  conversion  to  commercial
  property.
    3. Conversion to restricted use. Any applicant whose property has been
  granted  benefits  for commercial, industrial or renovation construction
  work, and who uses such property for any restricted  activity  prior  to
  the  expiration  of  the  benefit period, shall cease to be eligible for
  further abatement as of the date such property was first  used  for  any
  restricted  activity.  Such  recipient of benefits that cease under this
  subdivision shall pay with interest any taxes for which an abatement was
  claimed after such date, including the pro rata share of tax  for  which
  any  abatement  was  claimed  during  the  tax  year  in  which such use
  occurred.
    4. Conversion to residential use. (a) Any applicant whose property has
  been  granted  benefits  for  commercial,   industrial   or   renovation
  construction  work  and who, before the benefit period expires, uses the
  property or a portion of the property  as  residential  property,  shall
  cease to be eligible for further abatement for commercial, industrial or
  renovation construction work as of the date such property was first used
  as residential property, as follows:

    (i)  if  twenty  percent or more of the rentable square footage of the
  property is used as residential property, then the entire building shall
  cease to be eligible for further abatement;
    (ii) if less than twenty percent of the rentable square footage of the
  property  is  used  as  residential  property, then that portion of such
  property used as residential property shall cease  to  be  eligible  for
  further abatement;
    (iii)  notwithstanding subparagraph (ii) of this paragraph, where less
  than five percent of a property's rentable square  footage  is  used  as
  residential  property,  that  use will be considered de minimus and will
  not be a basis for benefits to cease under this subdivision; and
    (iv) such recipient of benefits  that  cease  under  this  subdivision
  shall  pay,  with interest, any taxes for which an abatement was claimed
  after the conversion of the property as described in  this  subdivision,
  including the pro rata share of tax for which such abatement was claimed
  during  the  tax  year  in  which such use occurred. The abatement shall
  continue for the commercial, industrial or renovation construction  work
  for the portion of the property that continues to be used for commercial
  purposes.
    (b)  For  purposes  of  paragraph  (a) of this subdivision, "property"
  means the real property contained by an individual tax lot.
    (c)  Notwithstanding  paragraph  (b)  of  this  subdivision,  where  a
  building  or  structure is owned in condominium form, and an application
  for benefits under this title includes more than  one  property  in  the
  same  condominium,  then  for  purposes  of  this  subdivision, the five
  percent and twenty percent of  the  rentable  square  footage  shall  be
  determined based on the aggregate usage of all such properties.
    5.  Conversion  to  retail  use. (a) Where a property has been granted
  benefits for industrial  or  commercial  construction  work  in  special
  commercial  abatement areas on buildings where not more than ten percent
  of the building or structure is used  for  retail  purposes  and  where,
  before  the benefit period expires, the property or a portion thereof is
  converted so that ten percent or more of the building  or  structure  is
  used for retail purposes, the department shall recalculate the abatement
  upon conversion as provided in subdivision six of this section.
    (b)  Where  a  property  has  been  granted  benefits  for  renovation
  construction work in renovation areas  and  where,  before  the  benefit
  period  expires,  the property or a portion of the property is converted
  so that more than five percent of the building or structure is used  for
  retail  purposes,  the  department  shall recalculate the abatement upon
  conversion as provided in subdivision six of this section.
    6. Recalculation of abatement upon conversion. If, during the  benefit
  period,  a  recipient  converts  square  footage  within any building or
  structure, the department may recalculate the benefit  granted  pursuant
  to  this  title  to  reflect  the  benefit  for which the current use is
  eligible under this title and rules  that  may  be  promulgated  by  the
  department.
    7. The burden shall at all times be on the recipient to demonstrate by
  clear  and  convincing  evidence that property subject to benefits under
  this title is used as stated in the preliminary and  final  applications
  for benefits filed by the recipient with the department.