1. (a) Where mortgage and recording taxes are paid upon the recording of a construction or blanket mortgage and the conditions described in either subdivision (b) or (c) of this section are met, there shall be a credit allowed which may be applied against the basic tax and, where applicable, the additional tax, the City of New York tax, the City of Yonkers tax and the Broome County tax which would otherwise be payable upon the recording of a purchase money mortgage, the proceeds of which are used for the first purchase of a condominium unit which is submitted to the provisions of the Condominium Act (article 9-B of the Real Property Law). The credit described in this Part is not applicable to the special additional tax described in section 642.3 of this Title.

   1. (1) In the case of a construction mortgage recorded on or after July 1, 1989, the credit described in subdivision (a) of this section is allowed where mortgage recording taxes were paid on such mortgage and its proceeds were applied to the construction of a condominium unit described in subdivision (a) of this section.

   2. (2) In the case of a blanket mortgage recorded on or after July 1, 1989, the credit described in subdivision (a) of this section is allowed where the proceeds of such mortgage were applied exclusively to:

      1. (i) the payment of a construction mortgage whose proceeds were applied in the manner described in paragraph (1) of this subdivision; or
      2. (ii) to capital expenditures or expenses for the development or operation of the condominium; or
      3. (iii) to the purchase of land or buildings for the condominium, provided that such purchase occurred no more than two years prior to the recording of the declaration of condominium.

   3. (3) Notwithstanding the foregoing, no credit shall be allowed in the case of a construction or blanket mortgage recorded on or after July 1, 1989, where the first condominium unit of the condominium plan is sold more than two years after the construction mortgage as described in paragraph (1) of this subdivision or blanket mortgage as described in paragraph (2) of this subdivision was recorded.

      (c)

   4. (1) In the case of a construction mortgage recorded prior to July 1, 1989, the credit described in subdivision (a) of this section is allowed where mortgage recording taxes were applied to the construction of a condominium unit described in subdivision (a) of this section.
   5. (2) In the case of a blanket mortgage recorded prior to July 1, 1989, the credit described in subdivision (a) of this section is allowed where mortgage recording taxes were paid upon the recording of such mortgage and its lien was imposed on a condominium unit described in subdivision (a) of this section.

   (b)

Real Property Law, § 339ee