§ 1106-h. Real property tax exemption. 1. The local legislative body of any city, town or village is hereby authorized and empowered to adopt and amend a local law to provide that all or any portion of the value of the property included in a turnkey/enhanced rental project which represents an increase over the assessed valuation of the real property, both land and improvements, prior to the improvements of the property necessary or intended to effectuate the purposes of this article, may be exempt from any and all city, village and town real property taxes, as defined in subdivision twenty of section one hundred two of the real property tax law, real property special ad valorem levies, as defined in subdivision fourteen of section one hundred two of the real property tax law, and special assessments, as defined in subdivision fifteen of section one hundred two of the real property tax law, except that the assessed valuation may be increased or decreased to reflect a change in the level of assessment as certified pursuant to title two of article twelve of the real property tax law.

2. In any assessing unit in which there has been a change in level of assessment as provided in title two of article twelve of the real property tax law, the commissioner of taxation and finance shall certify the change in level of assessment factor in the manner provided in title two of article twelve of the real property tax law. The term "assessing unit" as used in this subdivision means a city, town, village or county having a county department of assessment with the power to assess real property.

3. Such local law may also provide for the abatement of any or all of the property taxes which are payable to such city, town or village from such project, for such duration as is provided in such local law, if any property taxes remain to be paid after the exemption or abatement provided in this section is determined.

4. Provided that the tax exemption or abatement authorized by this section shall be in addition to any other tax exemption or abatement authorized by law, and provided further, however, that in the event a project ceases to be subject to one or more provisions of this article any tax exemption or abatement authorized pursuant to this section with respect to the eligible property of such project shall terminate.