NY A10694

Establishes tax exemption benefits for eligible multiple dwellings in New York City that rent space to nonprofit arts organizations at rates up to $20 per square foot annually.

Requires affordable arts space to comprise a minimum 2% of aggregate floor area in eligible buildings, with up to 50% allowed as cellar space, and rent increases capped at 3% annually.

Provides escalating tax exemptions based on rent levels: buildings renting space below $10 per square foot receive 100% property tax exemption for 5-10 years depending on tenant improvement allowances of $50-$100 per square foot.

Grants extended tax benefit periods with annual increases of 1-1.5% for every dollar per square foot of rent below the $20 maximum, with benefits lasting 25-35 years plus potential 5-year extensions.

Requires property owners to obtain temporary certificates of occupancy for arts spaces and enter into rental agreements within one year of receiving occupancy certification, with benefits retroactive to project completion date.