Section 421-K. Exemption of certain multiple dwellings

1. Multiple dwelling
  buildings,  reconstructed,  altered, converted back to an owner occupied
  single family dwelling or any owner occupied multiple  dwelling  located
  in  any city having a population of more than twenty-eight thousand five
  hundred inhabitants but  less  than  twenty-nine  thousand  inhabitants,
  determined  in accordance with the latest federal decennial census, that
  is reduced to at most two units by such reconstruction subsequent to the
  effective date of a local law pursuant to this section shall  be  exempt
  from  taxation  and  special ad valorem levies to the extent provided in
  this section.
    After a public hearing, the governing board of such city may  adopt  a
  local  law to grant the exemption authorized pursuant to this section. A
  copy of such local law shall be filed  with  the  state  board  and  the
  assessor  of  such  city  who  prepares the assessment roll on which the
  taxes of such city are levied.
    2. (a) Such buildings within such city shall be exempt for a period of
  one year to the extent  of  one  hundred  percent  of  the  increase  in
  assessed  value  attributable  to  such  reconstruction,  alteration  or
  improvement and for an additional period of seven years subject  to  the
  following:
    (i)  The  extent  of  such  exemption shall be decreased by twelve and
  one-half  percent  of  the  "exemption  base"  each  year  during   such
  additional period.
    The  "exemption  base"  shall  be  the  increase  in assessed value as
  determined in the initial year of the term of the exemption,  except  as
  provided in subparagraph (ii) of this paragraph.
    (ii)  In  any year in which a change in level of assessment of fifteen
  percent or more is certified for a final assessment roll pursuant to the
  rules of the state board, the exemption base shall be  multiplied  by  a
  fraction,  the  numerator  of which shall be the total assessed value of
  the parcel on such final  assessment  roll  (after  accounting  for  any
  physical  or  quality  changes  to  the  parcel  since  the  immediately
  preceding assessment roll), and the denominator of which  shall  be  the
  total  assessed  value  of the parcel on the immediately preceding final
  assessment roll. The  result  shall  be  the  new  exemption  base.  The
  exemption  shall  thereupon  be  recomputed to take into account the new
  exemption base, notwithstanding the  fact  that  the  assessor  receives
  certification of the change in level of assessment after the completion,
  verification  and  filing of the final assessment roll. In the event the
  assessor does not have custody of the roll when  such  certification  is
  received,  the  assessor  shall  certify the recomputed exemption to the
  local officers having custody and control of the roll,  and  such  local
  officers  are  hereby  directed  and  authorized to enter the recomputed
  exemption certified by the assessor on the roll. The assessor shall give
  written notice of such recomputed exemption to the property  owner,  who
  may,   if   he  or  she  believes  that  the  exemption  was  recomputed
  incorrectly, apply for a correction in  the  manner  provided  by  title
  three  of  article  five  of this chapter for the correction of clerical
  errors.
    (iii) Such exemption shall be limited to one hundred thousand  dollars
  in  increased  market  value,  or  such  other sum less than one hundred
  thousand dollars, but not less than  ten  thousand  dollars  as  may  be
  provided by the local law or resolution, of the property attributable to
  such  reconstruction,  alteration  or  improvement  and  any increase in
  market value greater than such amount shall  not  be  eligible  for  the
  exemption  pursuant  to  this section. For the purposes of this section,
  the market value of the reconstruction, alteration or improvement  shall
  be   equal   to  the  increased  assessed  value  attributable  to  such

  reconstruction, alteration or improvement divided by the  most  recently
  established  state  equalization  rate  for  such  city. Where the state
  equalization  rate  or  special  equalization  rate  equals  or  exceeds
  ninety-five percent, the increase in assessed value attributable to such
  reconstruction,  alteration  or improvement shall be deemed to equal the
  market value of such reconstruction, alteration or improvement.
    (b) No such exemption shall be granted for reconstruction, alterations
  or improvements unless:
    (i) such  reconstruction,  alteration  or  converted  improvement  was
  commenced  subsequent  to  the  effective  date of the local law adopted
  pursuant to subdivision one of this section by such city; and
    (ii) the value  of  such  reconstruction,  alteration  or  improvement
  exceeds five thousand dollars; and
    (iii)  the greater portion, as so determined by square footage, of the
  building reconstructed, altered or improved is at least five years old.
    (c) For purposes of this section the terms reconstruction,  alteration
  and improvement shall not include ordinary maintenance and repairs.
    3.  Such exemption shall be granted only upon application by the owner
  of  such  building  on  a  form  prescribed  by  the  state  board.  The
  application  shall  be filed with the assessor of such city on or before
  the appropriate taxable status date of such city.
    4. If satisfied  that  the  applicant  is  entitled  to  an  exemption
  pursuant to this section, the assessor shall approve the application and
  such  building  shall  thereafter be exempt from taxation and special ad
  valorem  levies  as  provided  in  this  section  commencing  with   the
  assessment  roll  prepared  on  the  basis  of  the  taxable status date
  referred to in subdivision three of this section. The assessed value  of
  any  exemption  granted pursuant to this section shall be entered by the
  assessor on the assessment roll with  the  taxable  property,  with  the
  amount of the exemption shown in a separate column.
    5.  For  the  purposes  of  this  section,  an owner occupied multiple
  dwelling building shall mean any  building  or  structure  designed  and
  occupied  as the temporary or permanent residence or home of two or more
  families, including the owner of such building.
    6. In the event that a building granted an exemption pursuant to  this
  section  ceases  to  be used primarily for residential purposes or title
  thereto is transferred to other than the heirs or  distributees  of  the
  owner, the exemption granted pursuant to this section shall cease.
    7. (a) The enactment of a local law in such city may:
    (i) reduce the percent of exemption otherwise allowed pursuant to this
  section;
    (ii)   limit   eligibility   for  the  exemption  to  those  forms  of
  reconstruction, alterations or improvements as are  prescribed  in  such
  local law or resolution;
    (iii)  provide  that  the  exemption shall be applicable only to those
  improvements which would otherwise result in an increase in the assessed
  valuation of the  real  property  but  which  consist  of  an  addition,
  remodeling  or  modernization  to  an  existing  owner occupied multiple
  residence structure to prevent physical deterioration of  the  structure
  or  to  comply  with  applicable  building, sanitary, health and/or fire
  codes.
    (b) No such local law shall reduce  or  repeal  an  exemption  granted
  pursuant  to  this  section until the expiration of the period for which
  such exemption was granted.