NY Priv Hous Fin L § 33 (2021)
2021 New York Laws PVH - Private Housing Finance Article 2 - Limited-Profit Housing Companies 33 - Tax Exemptions.

§ 33. Tax exemptions. 1. (a) Upon the consent of the local legislative body  of any municipality in which a project is or is to be located, the real property in a project shall be  exempt  from  local  and  municipal taxes,  other  than assessments for local improvements, to the extent of all or part of the value of the property included in such project  which represents an increase over the assessed valuation of the real property, both  land and improvements, acquired for the project at the time of its acquisition by the limited-profit housing  company,  provided,  however, that   the   real  property  in  a  project  acquired  for  purposes  of rehabilitation shall be exempt to the extent of all or part of the value of the property included in such project, and further provided that  the amount of such taxes to be paid shall not be less than ten per centum of the  annual shelter rent or carrying charges of such project except that for projects located or to be located in a city of a population  of  one million  or  more, upon the consent of the local legislative body of the municipality, the amount of such taxes to be paid may be set at not less than (i) the taxes payable with respect to the  real  property  in  such project  with  respect  to  the year nineteen hundred seventy-three, or, (ii) if such project was not occupied in such year, not  less  than  ten per  centum  of  the  annual  shelter  rent  or  carrying  charges first established pursuant to subdivision one of section  thirty-one  of  this article.  Shelter  rent  shall  mean  the  total rents received from the occupants of a project less the  cost  of  providing  to  the  occupants electricity,  gas,  heat  and other utilities. Total rents shall include rent supplements and subsidies received from the federal government, the state or a municipality on behalf  of  such  occupants,  but  shall  not include  interest  reduction  payments  pursuant  to  subdivision (a) of section two hundred one of the Federal Housing and Urban Development Act of nineteen hundred sixty-eight. The tax  exemption  shall  operate  and continue  so  long  as  the mortgage loans of the company, including any additional mortgage loan the proceeds of which are  used  primarily  for the  residential  portion  of  the  project,  which  additional  loan is approved by the commissioner or the supervising agency, are outstanding.  (b) Where a municipality acts on behalf of another taxing jurisdiction in assessing real property for the purpose of taxation,  or  in  levying taxes  therefor,  the  consent  of  the  local  legislative body of such municipality shall have the effect of exempting the real property  in  a project from local and municipal taxes, other than assessments for local improvements, levied by or in behalf of both such taxing jurisdictions.   As  used  in  this paragraph, the term "taxing jurisdiction" means any municipal corporation or  district  corporation,  including  any  school district  or  any  special district, having the power to levy or collect taxes and benefit assessments upon real property,  or  in  whose  behalf such taxes or benefit assessments may be levied or collected.  (c)  Notwithstanding  the provisions of paragraphs (a) and (b) of this subdivision, the real property of a state urban development  corporation project  acquired,  owned, constructed, managed or operated by a company incorporated pursuant to the not-for-profit  corporation  law  and  this article  shall  be entitled to all the benefits provided by section four hundred twenty-two of the real property tax law. The real property of  a state  urban  development  corporation project, other than a state urban development corporation project acquired, owned, constructed, managed or operated by  a  company  incorporated  pursuant  to  the  not-for-profit corporation  law  and  this  article, shall be exempt from all local and municipal taxes, other than assessments for local improvements,  to  the extent  of  the  value  of  the  property  included  in  such project as represents an increase over the assessed valuation of the real property, both land and improvements, acquired for the project on the date of  its  acquisition  by  the  limited-profit  housing company, provided that the amount of such taxes to be paid shall not be less than ten per centum of the annual shelter rent or carrying charges of such project, as  defined in paragraph (a) hereof. The tax exemption shall operate and continue so long  as  the  mortgage  loans  of  such limited profit housing company, including any additional mortgage loan the proceeds of  which  are  used primarily  for  the residential portion of the project, which additional loan is approved by the commissioner  or  the  supervising  agency,  are outstanding   and   the  project  is  continued  to  be  operated  as  a limited-profit housing project. If a state urban development corporation project qualifying for tax exemption pursuant to this paragraph is sold, with the approval of the commissioner, to another limited-profit housing company, such successor company shall be entitled to all the benefits of this paragraph. In the event that such sale is to a company incorporated pursuant to the not-for-profit corporation law and  this  article,  such successor  company  shall  be  entitled  to all the benefits provided by section four hundred twenty-two of the real property tax law.  (d) Notwithstanding the provisions of paragraphs (a) and (b)  of  this subdivision, when a project is financed with a mortgage loan pursuant to this  article  or  article  three  of  this  chapter  and (i) there is a participation, new loan or investment pursuant to section twenty-three-b of this article or (ii) such mortgage  loan  is  assigned,  modified  or satisfied   pursuant   to  section  twenty-three-a  or  forty-four-b  or subdivision twenty-two-a of  section  six  hundred  fifty-four  of  this chapter, the real property of the project shall be exempt from all local and  municipal  taxes, other than assessments for local improvements, to the extent of the value of the real property included  in  such  project which  represents  an  increase  over the assessed valuation of the real property, both land and improvements, acquired for the  project  on  the date  of  its  original  acquisition  for  the  project  by the original mortgagor under a mortgage loan pursuant  to  this  article  or  article three  of  this chapter, provided that the amount of taxes to be paid on the project shall not be less than ten per centum of the annual  shelter rent or carrying charges of such project, as defined in paragraph (a) of this  subdivision.  Such  tax  exemption shall commence in each instance from the date when the project becomes subject to a mortgage insured  by the  federal  government  and  shall  operate  and continue so long as a mortgage on such project is insured or held by the federal government or so long as the project is thereafter owned by the federal government  or so  long  as  any  residual  indebtedness  is  outstanding, whichever is longer. When there is a participation, new loan or  investment  pursuant to  section twenty-three-b of this article, such participation, new loan or investment shall be deemed  to  be  the  equivalent  of  a  federally insured  mortgage  for  purposes of this paragraph. Nothing contained in this paragraph shall be construed  to  limit  or  otherwise  impair  the benefits  available  to any company eligible for exemption from taxation pursuant to section thirty-one or section thirty-six-a of this  article, section four hundred twenty-two or section four hundred sixty-seven-c of the  real property tax law, or section fifty-eight of the public housing law. The foregoing shall not be  deemed  to  authorize  any  company  to receive  the benefits of any exemption from taxation in contravention of the provisions of section two of article eighteen of the constitution.  (e)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this subdivision,  a municipality, with the approval of the local legislative body, may contract to exclude all or part of any rent subsidies received from the federal government pursuant to  section  eight  of  the  United States  Housing  Act  of nineteen hundred thirty-seven as amended in the computation of total rents received.  (f)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this subdivision,  if  the  number of units occupied by persons receiving the benefit of  rental  assistance  payments  from  the  federal  government pursuant  to  section eight of the United States Housing Act of nineteen hundred  thirty-seven, as amended, with respect to any project increases by more than one hundred percent within any  twelve  consecutive  months prior to nineteen hundred eighty-five over the number of units for which such  subsidies  were  available during the preceding twelve consecutive months or as July first, nineteen hundred eighty,  whichever  is  later, taxes  payable for such additional subsidized units and subsequent units subsidized in the same manner shall be based solely upon that portion of total rents received on account of such additional subsidized units that is not funded by such rental  assistance  payments,  provided,  however, that no project shall receive such additional tax exemption (i) unless a minimum  of  seventeen  percent  of the units in the project receive the benefit of such subsidies, or (ii) if any mortgage on  such  project  is insured  or held by the federal government or if the project is owned by the federal government. The amount of exemption to which  a  project  is entitled  pursuant  to this paragraph shall be certified annually by the commissioner or the supervising agency, as the case may be.   2. Notwithstanding the provisions of subdivision one hereof,  whenever a  dwelling in a project is leased to the New York state housing finance agency pursuant to  the  provisions  of  section  forty-four-a  of  this chapter,  so  much of the assessed value of such project attributable to such dwelling (including a pro rata portion of the value of the land and common spaces) as represents an increase over the proportionate assessed value of the real property, both land  and  improvements,  acquired  for such  project  at  the  time  of original acquisition therefor, shall be exempt during the period of such lease from taxation for  county,  city, town,  village  and  school  district  purposes  and  special ad valorem levies; provided that if in any year the aggregate amount of such  taxes and  levies  that  would have been attributable to such dwelling but for the exemption provided by this subdivision exceeds  the  amount  payable out  of  the  low  rent  lease  account pursuant to subdivision three of section forty-four-a of this chapter with respect to the  agency's  rent obligation  for  such  dwelling,  the  agency  shall  make  proportional payments in lieu of such taxes and levies  to  the  appropriate  county, city,  town,  village,  school  district  or  special  district,  or any combination thereof as the case may be, in an aggregate amount equal  to one half of the sum of (a) the amount of such excess and (b) the amount, if any, by which the rent paid to the agency under the sublease for such dwelling exceeds the agency's rent obligation for such dwelling. Nothing contained in this subdivision shall preclude the increase of the taxable assessed  value  attributable  to  such  dwellings  as a result of a net increase in the assessed  valuation  of  the  taxable  property  in  the assessing  unit as a result of assessing such property at a higher ratio of full value.   3. Notwithstanding the provisions of subdivision one hereof,  whenever a  dwelling  in  a  project  is  leased to an authority, pursuant to the provisions of sections seventeen and thirty-one of this chapter, so much of the assessed value of such  project  attributable  to  such  dwelling (including  a  pro  rata  portion  of  the  value of the land and common spaces) as represents an increase over the proportionate assessed  value of  the  real  property,  both  land and improvements, acquired for such project at the time of original acquisition therefor,  shall  be  exempt during  the  period  of such lease from taxation for county, city, town, village and school district purposes  and  special  ad  valorem  levies. Nothing contained in this subdivision shall preclude the increase of the  taxable  assessed  value  attributable to such dwelling as a result of a net increase in the assessed valuation of the taxable  property  in  the assessing  unit as a result of assessing such property at a higher ratio of full value.   4.  Notwithstanding  the  provisions of subdivision one hereof, when a mutual company  is  organized  under  this  article  to  facilitate  the acquisition  of a building by residents thereof, the amount of local and municipal taxes, other than assessments for local  improvements,  to  be paid  on  the  real  property  included  in  such project, both land and improvements, shall not exceed twenty per centum of the  annual  shelter rent or carrying charges of such project, as defined in paragraph (a) of subdivision  one  hereof; provided, however, that where such acquisition of  a  building  by  residents  thereof  involves   the   financing   of rehabilitation  or  other  improvement  as well as acquisition, upon the consent of the local legislative body of the municipality in  which  the project  is  located  the  amount  of  such taxes may be further reduced provided that such amount shall not be less than ten per centum  of  the annual  shelter  rent  or carrying charges of the project, as defined in paragraph (a) of subdivision one hereof; or the company may in  lieu  of requesting such consent apply for the benefits of the local law, if any, enacted  pursuant  to  section  four  hundred  eighty-nine  of  the real property tax law. Such tax exemption, if any, granted pursuant  to  this article  shall  operate  and  continue so long as a loan made under this article or any subsequent loan  approved  by  the  commissioner  or  the supervising agency to enhance the residential portion of the project and the  project  is  continued to be operated for the purposes set forth in this article is outstanding.   5. Bonds, mortgages, notes, income debentures  and  obligations  of  a company  are declared to be issued for a public purpose and to be public instrumentalities and together with interest  thereon  shall  be  exempt from  tax  including  but  not  limited  to the mortgage recording taxes imposed by article eleven of the tax law.   6. Any project that received a tax exemption under paragraphs (a), (c) and (d) of subdivision one, and subdivision four of  this  section  may, upon  the  expiration  of  the  tax  exemption  period,  be  granted  an additional tax exemption period of up to fifty years, or until such time as the project is no longer operated under the restrictions and for  the purposes set forth in this article, whichever is sooner.