The new regulations clarified both requirements. For original use, vacancy was reduced to one year, except in certain cases where the property was not vacant on Dec. 31, 2017, in which case vacancy must be for three years. This was lowered from the original five-year requirement in the Proposed Regulations. There are also some nuanced rules about property seized by a government instrumentality. For a substantial improvement, the new aggregation rules allow for easier hotel development and clarity regarding the construction of new buildings on a parcel with existing buildings.
