NY S07616

Establishes a real property tax abatement program in cities with populations of one million or more for landlords who lease non-residential or mixed-use building space to nonprofit organizations under ten-year leases with annual rent increases limited to no more than three percent.

Abatement amounts equal $2.50 per square foot or 50% of tax liability per square foot (whichever is less) for the first five years, two-thirds of year one amount for years six through eight, and one-third of year one amount for years nine and ten.

Requires landlords and tenants to apply for abatement certificates within 60 days of lease commencement date and file annual certificates of continuing eligibility; abatements are revoked if the original tenant vacates or if property taxes remain unpaid for more than one year.

Prohibits landlords from sharing tax abatement benefits with non-eligible tenants but requires landlords to reduce rent for renewal tenants by an amount equal to the full abatement granted.

Eligibility period for new applications runs from April 1, 2021 through March 31, 2031; applicants must demonstrate no prior arson or property fraud convictions within seven years and must maintain arm's length lease terms comparable to market rates.