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Commercial Revitalization Program Application - New York
| Commercial Revitalization Program Application Form. This is a New York form and can be used in Department Of Finance City Of New York New York Local County . |
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NEW YORK CITY DEPARTMENT OF FINANCE G CRP/CEP EXEMPTIONS UNIT TM Finance C O M M E R C I A L R E V I TA L I Z AT I O N P R O G R A M INSTRUCTIONS F O R R E A L P R O P E R T Y TA X A B AT E M E N T A N D / O R C O M M E R C I A L R E N T TA X S P E C I A L R E D U C T I O N IMPORTANT NOTE: Applications MUST be filed with a non-refundable $500 filing fee within 180 days of the lease commencement date PROGRAM OVERVIEW The Commercial Revitalization Program consists of several component benefits designed to increase tenant occupancy while also reducing building obsolescence. Two major benefits that require the completion of this application are the Real Property Tax Abatement and the Commercial Rent Tax Special Reduction. These benefits are available to nonresidential or mixed-use premises built before 1975 and located in the abatement zone. ELIGIBLE AREA IN LOWER MANHATTAN The eligible area in lower Manhattan, called the abatement zone, is generally defined as the area bounded by Murray Street and Frankfort Street on the north, South Street on the east, Battery Place on the south and West Street on the west. REAL PROPERTY TAX ABATEMENT & LENGTH OF BENEFIT The Real Property Tax Abatement Program provides either a three or five year benefit. For the five-year benefit, the abatement in the first three years is limited to $2.50 per square foot of the property tax, (based on the percentage of area occupied by the tenant in the eligible premises). In the fourth and fifth years of the abatement period, the benefit will equal two-thirds and one-third respectively, of the initial tax abatement. For the three-year benefit, the abatement is limited to $2.50 per square foot in the first year. In the second and third years of the abatement period, the benefit will equal twothirds and one-third respectively, of the initial tax abatement. LEASE TERMS AND MINIMUM EXPENDITURES In order to be eligible for the abatement program, the lease on the premises must meet the minimum lease requirement corresponding to the length of the benefit. Sublets are not permitted. LEASE TERMS - The minimum lease term required to be eligible for the abatement and special reduction programs is based upon the number of persons employed in the eligible premises sixty days following the rent commencement date. If one hundred and twenty five or fewer persons will be employed in the subject space, the minimum lease term required for the premises is three or five years. If more than one hundred and twenty five persons will be employed in the subject space, the minimum lease term required is ten years. MINIMUM EXPENDITURES - Expenditure requirements are a minimum of five dollars per square foot for all premises requiring a lease term of at least three or five years. Expenditures of at least ten or thirty-five dollars per square foot depending on lease type are required for premises requiring a lease term of at least ten years. ADDITIONAL BENEFITS Four additional benefits beyond the scope of this application are the Lower Manhattan Energy Program (LMEP), the Residential Conversion Tax Exemption Program (421G), and the Industrial and Commercial Incentive Program (ICIP). For further information about these programs, see #5 under "Filing Instructions" on page D of these instructions. COMMERCIAL RENT TAX CHANGES The existing CRT special reduction for Lower Manhattan has been liberalized for certain leases that begin on or after July 1, 2005. Also, a provision addressing proration was added. For additional information, see page B of these instructions. PROGRAM QUALIFICATIONS THE FOLLOWING IS INTENDED TO SERVE ONLY AS A GUIDE IN YOUR DETERMINING YOUR ELIGIBILITY FOR ABATEMENT. ALL SUBMITTED APPLICATIONS ARE SUBJECT TO REVIEW IN ACCORDANCE WITH SECTION 499 OF THE NYS REAL PROPERTY TAX LAW. K K K K K K The premises must be located in an eligible building in the abatement zone. The premises must be used for offices or retail stores. The lease must be a "new", "renewal" or "expansion" lease. The required lease terms must be for a minimum of three, five or ten years, depending on the level of benefit. Required expenditures must be a minimum of 5, 10, or 35 dollars per square foot of net leasable space, depending on the level of benefit. Common area expenditures are only acceptable if: (a) made no more than three years prior to lease commencement, and (b) made within 6 months of lease commencement, and (c) not attributable to any other application for benefits under this program. File the application with the $500 application fee after the lease execution date. The application must be filed within one hundred and eighty days of the lease commencement date. The final filing date is September 30, 2014 (180 days after the programs authorizing legislation is scheduled to sunset). The lease on the premises must commence prior to March 31, 2014. Within sixty days of rent commencement, the applicant must provide evidence regarding expenditures and the number of employees working in the eligible premises. Renewal lease applicants must provide employee proof within sixty days of rent commencement and must provide expenditure proof within fourteen months of lease commencement. File a Certificate of Continuing Eligibility before July 1 of each year that an abatement is in effect for the premises. Failure to timely file will result in the revocation of benefits. Forms are available online at nyc.gov/finance. Benefit period begins the first day of the month following the rent commencement date and ends no later than sixty months thereafter. A benefit period may end no later than March 31, 2020. This application must be completed by both the property owner and the tenant. A separate application must be submitted for each individual property and lease. A tenant may only receive a single abatement benefit, whether three or five years pursuant to this program. K K K K K K K PROGRAM RESTRICTIONS The law prohibits: benefits to companies that move from the other boroughs to lower Manhattan; a second abatement benefit for the same company, unless it is for additional space; benefits for subtenants, and benefits for applications not filed within 180 days of lease commencement date. IMPORTANT NOTE This application must be filed with a nonrefundable $500 application fee within one hundred and eighty days of the lease commencement date. By statute, no extensions to the filing deadline are permitted. The application will be denied if not timely filed. Payment shou
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